WHAT YOUR FINANCIAL PLANNER CAN DO FOR YOU

Transcription

1 WHAT YOUR FINANCIAL PLANNER CAN DO FOR YOU Sound Life Financial Services

2 SOUND LIFE FINANCIAL SERVICES Since taking over Sound Life Financial Services in 2014, Jane and Thelma have completely overhauled the business. They have assembled a dynamic team who, together have the dream of helping people find financial freedom. We are passionate about making a difference through supporting people to feel empowered through having an effective financial plan.

3 Through regular reviewing and weekly team meetings we have come up with the following core values: Compassion: We believe in treating our clients with sensitivity and understanding. We have all been in the situation of letting debt get away from us or not having enough information on how to get our finances on track. Empowerment: to give power to someone to do something this is the very essence of our passion. We work through the process with our clients to becoming stronger and more confident in gaining control of all aspects of their finances which equals financial freedom. Fairness: Everyone who steps through our doors are created equal and as such treated with respect by our entire team and are free from judgement. We are committed to providing the same services to all who seek our help and as such there is complete consistency within the processes of all the services we offer. Effectiveness: We are always striving to be successful in producing desired results. Whether it s to help clients reach their financial goals or establishing them, making sure the office policies and procedures are current and up to date, ensuring our processes accomplish a purpose or just ensuring we are doing the right thing. Effectiveness is a very important value to us. Support: We believe that the financial planning process doesn t end when we hand you a plan! We are here to support you along the way. Every milestone that occurs in your life, marriage, buying a house, children having them or when they leave home, retirement, unexpected loss. We want to be the first call you make to sort out how you can purchase that car or have you got enough insurance if you can t work for a time. Goals change, life happens we are here for you. We make a difference by supporting others to feel empowered through having an effective financial plan.

4 True Value of Advice Funds managed by an adviser Less adviser fee 6% -1% 1,000, , ,000 Net Income % net return 50, % Funds in Term Deposit 2.60% 1,000, Net income 26, , Value added 2.6% 24, Funds managed by an adviser Less adviser fee 6% -12,000 90, ,000 1,500, Net Income % net return 78, % Funds in Term Deposit What your financial planner can do for you 2.60% 1,500, Net income 39, , Value added 2.6% 39, The role of your financial planner is to help you determine and assess your financial goals, taking into account your individual circumstances and aspirations and the options available. How an adviser can add value In other words, financial planning helps you determine where you re going and what you want for your financial future and then it helps you make it happen. No matter which professional you seek advice from (e.g. doctor, lawyer, accountant, etc) as a client what you want from them is their opinion. It is an ongoing process that takes into account your income, assets, liabilities, and personal views like your values, dreams, wants, needs, time horizons and your attitude toward risk and reward. It could be an answer to a specific question, the confidence to make a decision, the support to change a behaviour, a solution to resolve some complexity or simply some tough love to put some perspective in your life. The result is a custom-tailored strategy that can help you: Maximise your investment returns Make your retirement years more comfortable and secure Handle your day-to-day finances faster and easier Increase your savings and optimize the growth of your wealth Improve your cash flow for a better balance between income and expenses Minimise the taxes you pay Accumulate funds for special goals, like higher education for children Look after your dependents in case of death or disability Estimate your insurance needs Have more confidence in your financial decisions Transfer the assets of your estate to your heirs in the most effective way Investments Sound Life financial planners meet weekly to discuss the investments on their recommended list including direct shares, ETF s, managed funds etc. Sound Life is non-aligned Sound Life has an extensive approved product list (APL) which means that they can make recommendations from a huge range of investments An example of this happened recently. A client called after Trump was elected, distraught as the markets had tanked, wanting to withdraw all funds, this is all the money I have for my family for the rest of our lives. After some discussion and reassurance, it was decided not to go ahead with the withdrawal. Several days later the client thanked us as the market recovered, the portfolio recovered and a loss of 15, was avoided. This one wrong decision could have cost our client over 15, This portfolio which is split into two, one a more defensive portfolio and the other a balanced portfolio has had steady returns of 3.36% and 7.74% respectively net of fees. This equals 5, and 14, The fee for this portfolio is 5, pa based on 1.20% of portfolio value. Value added for this client: 35, in one year 15, loss avoided 20, income/growth generated

5 True Value of Advice Funds managed by an adviser Less adviser fee 6% -1% 1,000, , ,000 Net Income % net return 50, % Funds in Term Deposit 2.60% 1,000, Net income 26, , Value added 2.6% 24, Funds managed by an adviser Less adviser fee 6% -12,000 90, ,000 1,500, Net Income % net return 78, % Funds in Term Deposit What your financial planner can do for you 2.60% 1,500, Net income 39, , Value added 2.6% 39, The role of your financial planner is to help you determine and assess your financial goals, taking into account your individual circumstances and aspirations and the options available. How an adviser can add value In other words, financial planning helps you determine where you re going and what you want for your financial future and then it helps you make it happen. No matter which professional you seek advice from (e.g. doctor, lawyer, accountant, etc) as a client what you want from them is their opinion. It is an ongoing process that takes into account your income, assets, liabilities, and personal views like your values, dreams, wants, needs, time horizons and your attitude toward risk and reward. It could be an answer to a specific question, the confidence to make a decision, the support to change a behaviour, a solution to resolve some complexity or simply some tough love to put some perspective in your life. The result is a custom-tailored strategy that can help you: Maximise your investment returns Make your retirement years more comfortable and secure Handle your day-to-day finances faster and easier Increase your savings and optimize the growth of your wealth Improve your cash flow for a better balance between income and expenses Minimise the taxes you pay Accumulate funds for special goals, like higher education for children Look after your dependents in case of death or disability Estimate your insurance needs Have more confidence in your financial decisions Transfer the assets of your estate to your heirs in the most effective way Investments Sound Life financial planners meet weekly to discuss the investments on their recommended list including direct shares, ETF s, managed funds etc. Sound Life is non-aligned Sound Life has an extensive approved product list (APL) which means that they can make recommendations from a huge range of investments An example of this happened recently. A client called after Trump was elected, distraught as the markets had tanked, wanting to withdraw all funds, this is all the money I have for my family for the rest of our lives. After some discussion and reassurance, it was decided not to go ahead with the withdrawal. Several days later the client thanked us as the market recovered, the portfolio recovered and a loss of 15, was avoided. This one wrong decision could have cost our client over 15, This portfolio which is split into two, one a more defensive portfolio and the other a balanced portfolio has had steady returns of 3.36% and 7.74% respectively net of fees. This equals 5, and 14, The fee for this portfolio is 5, pa based on 1.20% of portfolio value. Value added for this client: 35, in one year 15, loss avoided 20, income/growth generated

6 Our Services Explained Tick against any services that you may interest you P Arrange to meet you at a convenient time P Getting to know you Wealth Management (Ongoing fees apply p.a. <50, % p.a >50,000) Gather all necessary information required such as tax file numbers, contact details, copies of relevant identification for the anti-money laundering requirements, authorization to gather information on your behalf for current superannuation and insurance policies Gather all information on personal details such as assets and liabilities, current investments and insurances, what kind of retirement you would like to achieve, how you currently plan to fund your goals and objectives Timeline planning which helps to determine goals and objectives, and to be able to assist in bridging the gap between where you are now and where you want to be Construction of an investment portfolio using an available lump sum Review of existing investments (managed funds/shares) Producing a required level of after tax income from your investments Advice on the investment of your surplus income Ability to save for future expenditure Cash flow management plan Providing for anticipated capital spending Advice on salary packaging Help you meet your liquidity requirements Budget planning and real-time tracking for 12 months Setting up s on to mobile devices MyGov setup Setting up log in details and passwords Link government services to the MyGov account Advice on building your super assets Consolidation of your individual super funds into a single fund Desirability or the suitability of a Self-Managed Super Fund Perform lost super search Determine your individual investment risk profile Super Compare existing superannuation funds on features, fees, investment choices and performance Supply super choice forms to employers Complete binding nomination forms Manage all rollovers Invest as per your risk profile Projections of super/ pension balances Ensure all contributions are going into the correct accounts Determine whether there will be enough funds to finance retirement Determine how much you will need in your retirement Help you to decide when you would like to retire Jane Looker Director e: jane@soundlife.com.au Thelma Jaekel Director e: thelma@soundlife.com.au

7 Tick against any services that you may interest you P Compare effects and benefits of salary sacrifice (concessional contributions) P Contribution advice - concessional and non- concessional Explain tax advantages Discuss strategies with your accountant Assessing your eligibility for government incentives for non-concessional contributions Ensure contribution caps/regulations aren t exceeded Explain the strategy Explore the suitability and tax effectiveness of a TTR strategy Transition to Retirement Strategy Show projections of the effects of the strategy Prepare the necessary applications and paperwork Ensure the strategy is implemented correctly Assist with employers in the initial set up of the strategy Obtain Centrelink benefits Centrelink assistance Help with all application forms Register as a nominee for your Centrelink account to help with the initial application and future dealings Analyse your risk insurance needs Review your existing risk insurance policies Investigate insurance options Personal Protection Obtain quotes and talk to underwriters Assist with the completion of the application including all necessary paperwork Follow up insurance applications & negotiate with underwriters Assist in making claims Starting a Self Managed Super Fund Changing over SMSF administration Succession Planning - complex Risk Direct shares or non standard portfolios Explain the effects on having insurance premiums in super versus outside super Assist you with your SMSF. For example, we help with the administration duties to ensure the SMSF s are compliant with the ASIC requirements to avoid our clients facing hefty fines Organise the Recourse Borrowing arrangements so that you can borrow funds in your SMSF to purchase property Thorough audit and checklist of your current SMSF setup Ensure compliance to SIS regulations, including minutes, forms, consents and other documents that need to be executed when making changes Assist you and your family when you are engaging the succession planning process with complex Personal Insurances to help with the planning process Liaise with accountants and solicitors involved in this complex process Manage your direct share portfolio, including the buying and selling of shares Provide you with updates on the assets performance Provide your accountant with reports at tax time T (08) F (08) w: 1st Floor 106 Stirling Terrace Albany WA 6330 Authorised Representatives of Synchron AFS Licence no

8 Personal Insurances Explained If you were unable to work for any length of time - have you thought about how you would cope financially? Do you have enough savings to support your lifestyle while you have no income? We look at ways to make this sort of cover affordable when it is needed the most., ie. having split cover inside and outside of super. Trauma Protection Income Protection Life Protection & Terminal Illness Cover Total & Permanent Disability Protection (TPD) Trauma, or critical illness, protection provides a lump sum payment on the diagnosis of a serious medical condition (eg. heart attack), or in the event of your death. This cover differs from TPD as it is not assessed on your ability to work and is the most common lump sum insurance payment. Income protection insurance provides you with a monthly income equivalent to 75% of your taxable income (maximum insured available) which is payable after your selected waiting period after any injury or illness that prevents you from working. The policy will continue to pay you to the end of your selected benefit period should you not be able to return to work. This premium is also tax deductible. Provides a lump sum payment in the event that you are diagnosed terminally ill or unfortunately pass away. Provides a lump sum in the event that you become totally and permanently disabled and unable to return to work again to your own/any occupation due to serious injury or illness. This benefit is designed to assist with medical costs as well as replacing lost income. The lump sum payment can help you make the adjustments to your lifestyle that you may want or need to make after suffering a trauma event. This gives you peace of mind that your family and lifestyle will be protected while you recover if you are unable to work due to illness or injury. We all like to think that we are not going to be leaving this world for a long time, however it is a fact that 144,000 people in the world die each day. It is designed to help take the pressure off you financially if you suffer an illness or injury that leaves you totally and permanently disabled. The lump sum benefit paid is often used to eliminate debts, pay for medical expenses and to fund permanent lifestyle changes. For example, moving to a home that is more accessible for your condition. This can only be paid by you. This can be paid by super, however this will have limited cover. You can spilt your premiums to be 70% paid by super and 30% by you to receive extra benefits with more favourable waiting periods. This can be paid from super or personally. Binding nominations determine where the funds are to be paid in the event of your passing. This can be paid from super or personally. Binding nominations determine where the funds are to be paid in the event of your passing. An estimated 275 Australians develop type 2 diabetes every day. 1 in 2 Australian men and 1 in 3 Australian women will be diagnosed with cancer before they are in every 10 deaths are from cardiovascular disease. 1 in every 10 deaths are from ischaemic disease. 1 in every 10 deaths are from having a stroke.