The Australian financial planning industry is one that is constantly on the lookout for new business opportunities to expand and grow.Because of the intense nature of their training, there is always a need for these individuals to keep on top of their own practices and always be looking to expand and increase their knowledge.As a result, there is a great deal of skill transfer between the company and their clients.Another important aspect of this industry is that the financial advisers who work in the Australian financial planning market have to be very knowledgeable about all aspects of their clients' lives.At the same time, they have to keep abreast of all the latest trends and changes in all areas of their clients lives.In addition to this, the advisers in this field have to know all of the latest financial products, accounts and financial goals and targets that their clients have set out for themselves.This knowledge helps them to advise their clients on the best products to purchase that will help them meet their goals.Many financial planners work in both private and public sector roles.
When deciding the type of insurance, you want to consider for yourself and your family, it is critical you get the right type of cover.AN IMPORTANT CLAUSE THAT NEEDS TO BE CONSIDERED IS WHETHER OR NOT THE TERMS AND CONDITIONS OF THE POLICY CAN CHANGE, EVEN AFTER YOU HAVE TAKEN OUT THE POLICYGroup InsuranceGroup insurance is a pooled insurance product that is offered by a super fund or employer to a group of people.Often, people will hold a default level of group cover via their industry super fund.Retail InsuranceRetail insurance is a fully underwritten policy that is distributed to customers through intermediaries such as financial insurance advisers.This allows the insurance company to change their terms for a product, which will affect anyone with that product.They have the ability to do this anytime, meaning that your terms and conditions may be changed without you knowing.Retail Insurance on the other hand, works differently.Once you have agreed to a policy, the terms are ‘locked’ and cannot change.After all, who really wants to think about their own demise – be it untimely or natural?
We’ve all heard the stories of parents buying their newborn a property or putting money into shares.But setting up your kids’ future is something that most parents will think about almost from the time they arrive.So what is the best way to invest for your children – bonds, term deposits, shares, property or super?Perhaps surprisingly, one of the more important things to look out for isn’t the capital gain, though this is a consideration.High-interest savings accounts If you have a small amount to invest, a high-interest bank account could be the way to go.Not only are they relatively simple to set up and administer.Investment bonds Sometimes called insurance bonds, investment bonds are a good option for larger amounts of money.A lot like superannuation, the fund that holds the investment pays tax at a rate of 30 per cent meaning you don’t need to include any earnings in your taxable income.Shares Putting some money in shares can also be a profitable option for long-term investments.
Assess your financial position To prepare for retirement, the first thing to do is to work out how much money you have now, how much you might have in the future and where it will come from.Bring this information together by finding out:what assets (houses, savings, investments) you have and how much they are worthhow much super you have and when you can access itwhether you are likely to be eligible for the Age Pension and when you can apply for it.Make a long-term financial planThe next step is to think about how your needs might change over time.For instance, in the first few years of retirement, you might want to travel or take up a new hobby.Later, you may want to replace your car or renovate your kitchen.Further down the track, you may want to move into a retirement village.Think about how you can use your different income sources to fund the different stages of your life.
With a Royal Commission into the finance industry just around the corner, it’s important now, more than ever, to obtain accurate financial advice.We’ve created a list of go-to questions to ask before partnering with a financial planner.Traditionally, the local Bank Manager was seen as the oracle of all things financial.Our parents would look to the Bank Manager to obtain advice and guidance on all things money.How do you decipher through all the financial jargon, and reach a point where you’re satisfied with the information you have, and the product that you have received?Research by the Financial Services Council has shown that people who received financial advice were almost $100,000 better off in retirement.