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Key Watch Outs with Financial Planning

Financial Planners and advisors are charged with managing your money for your future. It is not about they want, their ideas or their interests, it is of the upmost importance that you remember that you are the client and it’s your money.

In recent times, the Royal Commission has gone along way to stamp out a lot of the ‘cowboys’ of the industry, but there are some key watch-outs when it comes to financial planning.

It’s about you!

As mentioned in this and previous chapters, your financial journey is about you, your family, your future, your retirement and your succession planning. Therefore, it is so important to engage your accountant, lawyer and financial planner/advisor collaboratively, so that your needs are being met.

In some instances, it has been seen that financial planners and advisors recommend products and services that they best benefit from – in terms of commissions and kickbacks – while not necessarily being the best for you.

This is something that you need to ensure you ask for ‘like for like performance of the fund/ investment/ insurance vs. comparable options or substitutes. No different to you looking at several open homes from several different agents before you commit to buying a house.

And just like buying a house, you are well within your rights to have your ‘building and pest inspections’, by asking your accountant and/or lawyer to review the details and provide independent and trusted advice.

You are not expected to be a financial expert

One of the common issues as a client is that you are not a financial expert. You may not jump out of bed and read the financial section of the financial review each morning. You may not have been through a finance degree, nor be an accredited financial planner – and you are not expected to be.

As part of the ‘duty of care’ that your financial planner is obligated to provide, they must explain everything to you within your current level of understanding. They should avoid bamboozling you with financial jargon, be condescending and push products or services on you, or have you sign up to things that you simply don’t understand.

It is ok not to understand financial products and services, as it is often said that they were designed complicated by Wall Street Bankers so only they – and a select few - could understand them.

As a client, you have every right to understand what you a signing up for and not be treated by anyone you are paying fees to in a demeaning way. IF this is happening, report them to the Financial Planning Association and see how they like that?

Communication is the key.

A trait of a good financial planner is clear, concise and regular communication with clients. Thanks to digital mediums – such as Zoom, Teams, Slack, Asana and more, there is no excuse even in a COVID-19 lockdown for financial planners not to be communicating with you.

Communication is the key to sound and prompt decision making, and if your financial planner is not returning your calls in a timely manner, not responding to emails or not uploading files to you as they said they would – you need to call that out.

However, on the flip side, remember they are busy running their own business, with other clients and their own small business considerations – so there is a balance.

Honesty – they must speak their mind!

When it comes to your financial matters, you want a financial planner that can speak their mind – and call the situation as it is.

You may get upset or feel embarrassed by their feedback or observations on your financial position, but it is better than signing up for services or investments, financial plans, or policies that you can’t afford or that are not right for you.

Not only does the planner need to speak their minds and be honest, but so do you as the client. It is paramount that you have a two-way, open and honest conversation – otherwise things will get missed, skipped or overlooked.

Issues with getting a second opinion.

Many professionals do not like their work critiqued by other professionals – no where more than in the financial services sector.

There are most certainly going to be differing opinions in the selection of financial product and services by your trusted advisor – ie. lawyers, accountants, financial planners etc – however, it is always important to get a second opinion.

As previously outlined, there are clearly defined roles and responsibilities of your professional service providers, they should not cross over. That is not to say that your accountant cannot review the validity of an investment option or change of superannuation provider as a ‘fresh set of eyes’.

Remembering they have financial training as well and know what to look for. Meanwhile, your lawyers can review the fund or investment options, check the legal validity, and undertake some due diligence for you.

It’s important to keep your advisors in their swimming lanes, but it never hurts to get a second opinion – remember it’s your money and your future we are talking about here.

The Financial Planning Association and Royal Commission into the banking and financial services sector have largely stamped out much of the bad advice and unscrupulous operators in the industry. However, unfortunately where there is money, there are people wanting to take advantage.

This may not be your financial planner themselves, but it may be those around the planner – you never know. As such, it is always important to take your time, never rush your decisions, review all the PDS (product disclosure statements) and get a second opinion – remember, it is your money and your decision.

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Financial Planning Brisbane

Oct 14, 2021 10:24:16 AM

A Brisbane financial planner can help get your affairs in order for your business and personal needs.

As people from the southern states flock to the beautiful Sunshine State, the people of Brisbane need to ensure their assets are protected and in the best place to capitalise on the market growth.

From skyrocketing property prices, through to real estate investment trusts (REIT) geared to capitalise on the current growth, are your personal finances to maximise your returns in your retirement?

Financial planning is your roadmap to success

Ever wondered why some people are retiring comfortably up on the Sunshine Coast, Fraser Coast or Gold Coast beaches? Financial planning has more than likely quite a lot to do with it.

Seeking professional financial planning advice sooner rather than later can literally save you tens of thousands, if not hundreds of thousands during your retirement, not to mention providing more money to enjoy now – fun in the Brisbane sun!

Why see a professional planner now? Why not when I am closer to retirement?

It is a myth that a financial planner is something that you need when you are coming up to retirement. In fact, a Brisbane financial planner can provide you with the necessary advice, roadmap and goal setting that could open your eyes to so much more.

Thinking of an investment property? Maybe an annual holiday overseas with the family? What about a jet ski to punch over to Straddie? Well, rather than buying these on credit, or leveraging assets just because your bank manager says it’s a good idea, why not have an expert take a look?

A financial planner looks not only at the now, but the future, and everything in between. You wouldn’t get in the car without knowing where you were going, and your financial map is no different. Like your GPS, a financial planner in Brisbane can provide you with several ways to get to your destination, different risk levels, varying investment options, not to mention regular passive income streams to top up your annual salary!

Wouldn’t it be nice to have an extra $1000, $10,000, or even $50,000 a year? A financial planner can show you how.

But don’t be fooled, a financial planner will also give you the hard truth about your financial situation, your credit score, your debt levels, and your retirement plans.

How does a financial planner work?

The great thing about most financial planners around Brisbane, is they come to you. They meet and discuss your personal finances. This includes insurance, superannuation, investments, mortgages, credit cards & debt levels, wills & estate planning just to name a few areas.

They will also work through your earning capacity, your life situation (married, children, single etc), the number of years you have left to realistically work in your job at full capacity – and then build out that roadmap, just for you.

Then on a regular basis, your financial planner can come to your Brisbane home, or one of the great cafés around the River City, and discuss your progress, make changes if necessary but all in line with meeting the goals and expectations you set out in your initial meeting.

Financial planning is not just for wealthy people, it is a profession that aims to create wealth for its clients. Not simply financial wealth, but the wealth of the shared experiences that you and your family can enjoy but knowing your (and your family) financial future is in safe hands.

Financial Planning Perth

Oct 14, 2021 10:17:51 AM

Want to find a financial planner in Perth to get your finances in order? Ask us for an appointment.

As the most isolated capital city in the world, Perth residents have long enjoyed the fruits of the mining boom, the picturesque beaches and a lifestyle that is arguably the envy of much of Australia. However, Perth has also experienced the economic highs, and desperate lows due to its reliance on what it pulls out of the ground, with fluctuating house prices, cost of living, not to mention job securing often tied to Global Iron Ore and other precious mineral pricing.

In the 2017 ABC Documentary, Betting on the House, it was evident to viewers how unguided, inexperienced investment in the property market brought many people in WA to their knees.

With similar market hallmarks in the Western Australian’s mining industry – in part due to the trade war with China and the downward pressure on iron ore pricing & jobs – it’s timely to consider could a GFC-like effect impact the WA market?

Prepare for the unexpected

Financial Planners in Perth understand the risks of FIFO workers, the rewards and the opportunities that are out there for investors that put their money in the right place.

A financial planner can provide a path to success for your personal finances, regardless of if you earn a lot now, later or lose your job through industry cutbacks.

In a market such as Perth that has already seen the highs and lows, pooling your investments in one asset class such as shares or property has proved to be extremely dangerous – and for your long-term financial security, a Perth financial planner is key to getting this right for you.

Regardless of how old you are, have you got a will? Have your thought about how much you would need to retire? Have you through about purchasing a boat? Or have you seen a little apartment you liked in Broome that would be a great holiday rental, as well as a place for you to get away from the world? A financial planner based in Perth is the ideal piece of the puzzle for those looking to ensure their financial future is in good hands.

I understand money, why should I see a financial planner?

What happens if the mining ends? If you work in hospitality or tourism and run into issues, could you survive if it couldn’t get back up on its feet? What if you lost your job? Could you pay your mortgage?

A financial planner is not a ‘dooms-day prepper’, but a planner for all scenarios you might face in your future. They look at your life, objectively, working through what levels of debt you have, what income you make, how many years you could work and how much you need to retire.

But it’s not all about squirrelling away all your money and having no fun. What about a small boat to enjoy Rottnest Island? Why not. But too many people make the mistake of putting them on credit, not planning, saving and buying when the time is right.

If you want to be comfortable in retirement, get debt-free, and own your financial future – not be a slave to the big banks and their interest payments – then a financial planner in Perth is your next best step.

The Next Steps…

Jul 30, 2021 10:47:17 AM

The Next Steps…

Weigh the situation, then move – Sun Tzu

Your financial journey is now in your hands. This Walker Capital eBook has provided you with the details of the product, price, place, people and processes of financial planning – now it’s up to you to make it happen.

The next steps are to look inwards, review your current financial situation, download an excel spreadsheet template of a personal budget – if you don’t already have one – and start getting prepared to meet with a financial planner.

Speak to your friends, accountant, lawyer and see if there are any names that come up more than once. The key is don’t just to run to the biggest name in town, they will often have a standardised offering, non-flexible pricing and mediocre returns.

There are many financial planners out there, but the key is to find the one best suited to you, your family and your financial needs and risk tolerance – remember, you are the client, it is your call.

Walker Capital are an established financial investment, fund manager and financial services company based all around Australia.

With a dedicated financial planning network expanding exponentially, Walker Capital have independent advisors, with objective thinking. Being part of a national network means Walker Capital get access to the best investment opportunities across a wide range of classes.

Being a vertically integrated business there are internal & external opportunities that are available to clients, while also never creating a fund or a product without themselves investing or using it – a mark of faith in a product if there ever was one.

Your financial journey should be that of a learning, growing and rewarding experience, pick the financial planner who shares your vision, understands your goals and objectives and, most importantly, understands you.

Congratulations today is your day, your off to great places your off on your way – Dr. Seuss