Jul 12, 2018

Our Insights

There is a perception about Financial Advice that it is as a luxury item that only rich people can afford.  Think comments like: “I don’t have any money or wealth, so what is there to plan?”  or “I’m too young, I’ll think about that sort of thing when I’m older”  Throw away comments like these are why so many average Australians don’t even consider the need for advice.

Some typical examples of everyday Australians that are among those that can benefit are:

·       Superannuation account holders with $100,000+ balances

·       Young families, who need a quality personal insurance review (cover such as life insurance, total &permanent disability, income protection & critical illness)

·       Young families with principal residence & consumer debt

·       Working tradespeople/professionals with potential excess cashflow

·       Consumers who have strong incomes, but poor savings history

These everyday situations of everyday Australians can benefit from Financial Advice and are among the bulk of the population who don’t understand they can get value from their financial adviser.

Financial advice is not just a service for the wealthy.  In fact, people that will get the most value out of seeing a financial adviser are generally people in the stage of accumulating wealth (young families), people getting ready to retire and then people in their retirement.  Each of these different groups will seek different areas of advice from their financial adviser. However, the people that start planning when they’re young will benefit from develop a trusting, meaningful relationship with their adviser that can last all the way through and into their retirement.

Think about your 'why'?

Why do you need money? 

What is it that fulfils you in life personally that is the reason you need to earn money in the first place?

Why do you need to work so hard?

Generally the reason is to fund lifestyle and family activities that are important to us.  It’s very easy to forget these fundamental questions as we navigate our way through our hectic lives.

At Calder Wealth we like to start with conversations that flesh out these objectives and help us start to understand your sense of “Why?”

All of this is what we do before we get into the financial nitty gritty of making recommendations about your financial affairs.

By helping you flesh out these priorities enables us to deliver the best short, medium and long strategies to achieve these goals.  It will also help you feel more engaged with the financial planning process if you can relate the outcomes to personal, lifestyle and the family achievements you envision.

Set your goals

It's such a simple step but one so often taken for granted: put your goals in writing.

Start out by listing the big-ticket items. Basically, make your goals as concrete as possible by writing them down.

·       Do you want to take a holiday this year?

·       Is a new car at the front of your mind, these days?

·       Interested in purchasing a home or an investment property?

Whatever your dreams may be, get them down on paper.

Next, break your plan down timeframes like the following:

  1 Year 3 Year 5 Years
Work Commitment, hours etc      
Personal Aspirations? (Holidays, Social / Community Interests)      
Income Expectations      

What sort of things do Financial Advisers actually do?

This question is probably the most basic but important of questions!

A Financial Adviser will be able to help with different things depending on the stage of your life.  The table below is a summary of what sort of things they will do at each life stage, but it is not limited to these things.

Life Stage Characteristics Financial Planning needs
Employed & Single ·  Generally no dependants ·  Starting to accumulate material possessions ·  Consumer debt ·  Budgeting & debt management ·  Superannuation ·  Insurance: Income  Protection  
Partnered – no children ·  Double income ·  Mortgage / car ·  May have investment assets ·  Savings capacity ·  Budgeting & debt management ·  Superannuation ·  Insurance: Income  Protection,  Life & TPD, Trauma ·  Estate Planning ·  Salary planning  
Partnered with children ·  Significant financial commitments & living costs ·  Debt   ·  Budgeting & debt management ·  Superannuation ·  Insurance: Income  Protection, Life & TPD, Trauma ·  Estate Planning ·  Salary planning  
Partnered post children ·  Pre-retirees, focused on security in retirement ·  Usually reduced or no debt ·  Disposable income   ·  Budgeting & debt management ·  Lifestyle requirements for retirement ·  Continue to accumulate assets ·  Superannuation ·  Estate Planning ·  Salary planning  
Pre-retirement ·  Aged 55 or older ·  Usually reduced or no debt ·  Disposable income ·  Tax effective savings ·  Superannuation & retirement strategy ·  Estate Planning ·  Salary Planning  
Retired ·  No more employment income ·  Focus on retirement lifestyle using accumulated assets   ·  Budgeting ·  Conserving wealth ·  Estate Planning ·  Centrelink Planning ·  Retirement income  

What next?

Take this information to a reputable financial adviser and let them work with you on formulating a plan.

At Calder Wealth, the first appointment is a free, no obligation appointment.  Make the most of this time by allowing them to show how they can offer value and a relationship that is worthwhile to your financial future. 

At Calder Wealth Management, our specialist team of financial advisers will help you. Contact us or call 08 8373 3333 to arrange a free, no obligation appointment.

Written by Kerryn Shaw, Associate Financial Adviser at Calder Wealth Management.