The Perils of Lethargy

The Perils of Lethargy

As a financial planner, I’m constantly shocked at how many clients are happy to plod along, reluctant to undertake small changes that will make an enormous difference to their financial situation.

I understand that, for all of us, we don’t know what we don’t know, and we may be unaware there are better options for us.  I’m continually discovering things I didn’t know about previously. I fully understand clients cruising along not knowing about better options.

What staggers me is when we contact clients that we have acquired over the years that are in outdated, expensive products to let them know we need to update their position and they can’t be bothered to do so.

Financial products have improved dramatically over the last 20 years, and policies that were once suitable are now outdated. It wasn’t that long ago that we all had a Nokia 5110 and, at the time, it was a brilliant phone.  Compared to today’s phones, it is a relic.

The cost of super funds has halved over the last decade and the features have also significantly improved. It is worth investigating if the fund you have is still appropriate.

It is not uncommon to be able to reduce super fees by as much as 1% of the total super balance. With average super balances climbing, this is not an insignificant saving.

Despite mortgage offerings differing substantially between banks, very few people regularly review their mortgages. It is quite possible that you are paying a much higher interest rate than required. It is also possible you are able to structure the debt differently to match your spending and saving habits.

In my experience, people rarely review insurances; again, this could be costing you money. In general, the sum insured required for life insurance decreases over time. You accumulate assets, reduce debts and have a shorter period to take care of your family, all of which reduce the amount of insurance you require. Once you have the correct amount of insurance, over time this should slowly be reduced, lowering your insurance costs.

Furthermore, there may be more attractive options from other insurance providers. It is worthwhile to at least get comparative quotes.


Although reviewing your mortgage, super fund and insurances sounds like a hassle, it is quite possible that by doing so you will be thousands of dollars better off. Next time your financial planner or mortgage broker offers you a review, take it! You can only end up better off at the end of the meeting.  Worse-case scenario is that you spend an hour of your time confirming that you are still on track.

Author; Alex McKenzie Categories: Future Financial Services Blog

About the Author

Alex McKenzie

Alex McKenzie

Owner at Future Financial Services


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


  • University of Western Sydney
  • Penrith High


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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