18
May
2018

Help from a Financial Advisor

How can a Financial Advisor help me?

The Royal Commission has certainly caught some media attention with the banks and AMP being rightfully called out on some appalling behaviour.  Something I noticed myself on social media was a lot of comments encouraging people to “do it themselves” and not seek financial advice. I’ve also read a number of comments from people providing advice that is either wrong, overly simplistic or only correct for a small number of people. This is dangerous and may be an unintended consequence of the Royal Commission.

All this reminded me that most people have little understanding of what financial planners do and how we can help you. Selecting a superannuation fund is not where an advisor adds value. Although they can assist in making sure that your fund is appropriate, this is only a small part of the advice they provide.

The superannuation system is complicated and there are numerous complexities that lead to risks and opportunities. These are wide ranging and include things that are well known such as contribution limits and preservation issues to lesser known details like the varying tax treatment for different types of beneficiaries. An advisor can assist in navigating through these things.

Good advice can result in significantly reducing your taxation or dramatically increasing your Centrelink entitlements. The Transition to Retirement income swap strategy reduces your tax and boosts retirement savings by replacing taxable money with money that is taxed concessionally.  This can make an enormous difference in both the short and long-term.  The structuring of your assets can dramatically affect your income and assets test Centrelink assessments, and good advice in regards to this will be of great benefit.

Simple things like determining how much income you will need in retirement and what assets you will require to fund this income is something an advisor can help you with.  Advisors can also work out how much insurance you need and how that should be structured. There are different premium structures, level and stepped, each having different pros and cons, and it’s important you have the right option for your needs. Owning insurance inside and outside of superannuation has its own intricacies with diverse taxation and preservation issues that have different requirements depending on your situation.  I’ve barely scratched the surface of how financial advice can help!

Advisors assist to establish goals and develop plans, generate risk and debt reduction strategies and match investments to needs.  All of these services offer great value to clients above and beyond the technical complexities I’ve already mentioned.

Although some people have the knowledge and skill to do it themselves, most people will be significantly better off seeking advice from a professional.

Author; Alex McKenzie Categories: Future Financial Services Blog

About the Author

Alex McKenzie

Alex McKenzie

Owner at Future Financial Services

Past:

  • Paraplanner at Zammit Partners Investments
  • Unit Trust Administrator at Colonial First State

Education

  • University of Western Sydney
  • Penrith High

About

As a Financial Planner I help people to achieve what they would like in life. This involves helping you to identify the things in life they would like , developing plans to help achieve them and strategies to protect what you already have. We do this by providing Financial Advice to guide you through your life stages.

The financial planning process involves determining a clients current situation and financial objectives and tailoring strategies to assist in best achieving those objectives.

I am an expert in superannuation, investments and insurance, these are tools we use to help you achieve your goals.

I aim to use my knowledge of superannuation, taxation and Centrelink to efficiently use your assets and income to achieve your financial goals.

Retirement and pre-retirement planning, wealth creation, asset protection, insurance planning and estate planning are all areas of advice that I provide.

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