A client once shared a poignant regret:
“When I was working and the kids were young, I saved too much. It restricted what we did when the family was together.”
This simple reflection struck a chord with me. It got me thinking about the delicate balance between saving for the future and living fully in the present. While we all know the importance of financial security, is it possible to save too much—at the expense of the moments that matter most?
Australians love a good tax deduction. It’s almost ingrained in us—if there’s a way to pay less tax, we’re all ears. But what happens when tax savings become the main driver behind an investment decision? As I’ve seen time and time again, people are sold on property investment strategies that prioritise negative gearing and tax outcomes over the quality of the investment itself. While these strategies may sound appealing on paper, they often result in financial stress, high debt levels, and poor long-term outcomes. When Tax Savings Become the Selling Point Many Australians are encouraged to invest in residential property purely because it can be negatively geared. The promise? You’ll reduce your taxable income by offsetting property losses against your earnings. But here’s the catch: negative gearing means you’re losing money every year. You’re essentially spending a dollar to save 30 cents. That’s not a winning formula—it’s a financial drain disguised as a tax-saving opportunity. I’ve seen clients earning well over $200,000 annually still struggle with cash flow because they’ve overcommitted to negatively geared properties. Why? Because they were sold on the idea of tax savings without fully considering the broader impact on their financial health. Conflicted Advice: Know Who’s Selling to You The property market is filled with salespeople whose advice is driven by commission. They’re not concerned with your long-term goals or financial well-being—they’re focused on closing the deal. Here’s the truth: These are not unbiased sources of advice. If the recommendation is coming from someone with something to sell, it’s worth asking: Whose best interest is this advice really serving? The Debt Dilemma: Stress and Strain Another troubling trend is the normalisation of taking on large amounts of debt to fund tax-driven property investments. When property prices rise rapidly—as they have for decades in Australia—buyers feel pressured to stretch their budgets to secure a piece of the market. But debt levels have now reached a point where even high-income earners are starting to feel the pinch. High debt tied to negatively geared properties creates: Quality First, Tax Second This isn’t a new problem. Twenty years ago, Australians were lured into tax-driven investments like blue gum plantations. The promise of hefty tax deductions was enough to convince many to invest, but poor investment fundamentals ultimately led to financial losses. A good investment should stand on its own merits and fit within your overall financial strategy. Tax benefits should always be a bonus, not the driving force. The Value of Balanced Advice When you’re considering any investment, it’s essential to seek advice from someone who can provide a balanced perspective and not incentivised to sell one strategy over another. A financial adviser, for example, will consider: By working with someone who isn’t tied to a single product or strategy, you’ll gain a clearer understanding of your options and make decisions that truly align with your goals. Final Thoughts: Buyer Beware If you’re considering an investment property where the selling point is how much tax you’ll save, take a step back. Ask yourself: Tax savings are great, but they should never come at the cost of quality, sustainability, or peace of mind. Remember, a good investment is one that works for you—not just for your tax return. The information provided in this article is general in nature only and does not constitute personal financial advice.
When people think about investing, they often focus on the numbers: analysing balance sheets, forecasting earnings growth, understanding sectors, and evaluating dividend yields and price-to-earnings ratios. While these elements are critical, they only make up 50% of the game. The other 50%? It’s something far less tangible but just as important—the psychological and emotional side of investing. The Role of Numbers in Investing Numbers, data, and analysis are the foundation of building a solid portfolio. They help answer key questions: This analytical side forms the basis of investment decisions—what to buy, what to avoid, and how to diversify. But understanding numbers is only half the challenge. The Harder Half: Investor Psychology The more difficult half of successful investing is managing emotions—what I often call “the feels.” Here’s why: markets are inherently emotional, driven by fear and greed. With today’s technology, investors can react to news—positive or negative—within seconds, causing markets to move sharply. This high liquidity makes it easy to fall into the trap of reacting emotionally rather than rationally. I’ve seen this firsthand with many clients, particularly retired men, who turn checking their portfolios into a daily hobby. The result? Anxiety and distress that often lead to poor decisions, such as selling in a downturn or chasing rising stocks out of fear of missing out. When Psychology Takes Over In times of market volatility—during corrections or crashes—the analytical side of investing takes a backseat. It’s no longer about the numbers; it becomes 100% psychological. These are the moments when: For those fully invested portfolios, the best decision may be to hold steady and ride out the storm. For others with cash reserves, it may be the perfect time to invest, capitalizing on undervalued opportunities. Making the Right Decisions at the Worst Times As a financial adviser, my role during these challenging times is to help clients make rational decisions, even when emotions are running high. Sometimes, that means encouraging them to step away: Because when emotions dictate actions, mistakes are often made. But when fear is at its peak, it’s also the time when opportunities are greatest. As I often say: “When my clients feel this crummy, it’s probably time for me to get excited and buy.” Competent investing requires a balance of analysis and psychology. While the numbers matter, it’s the ability to manage emotions during the tough times that separates successful investors from the rest. The information provided in this article is general in nature only and does not constitute personal financial advice.
As a financial adviser, one of the most common discussions I have with clients is about helping their children financially. For those with the means, the question isn’t if they should help, but rather when and how. The key to this decision lies in timing. It’s not just about how much you can give but ensuring that your help truly benefits your children and their financial future. Why Timing Matters: Financial Maturity vs. Age Financial maturity isn’t necessarily tied to a specific age. Some people are responsible and careful with money in their late teens, while others may take decades to develop respect for its value. Financial maturity is often built through: When your children reach this stage, they are better equipped to handle financial assistance responsibly. The Risk of Helping Too Early Providing a large lump sum at the wrong time can sometimes have unintended consequences: Why Timing After a Home Purchase Can Be Key A well-timed gift after your children have purchased a home can make a massive difference. Without an upfront gift, they are more likely to: When the gift comes after the purchase, it can be used to: This approach avoids the risk of them overextending on their initial purchase and ensures your help provides a meaningful and lasting benefit. The Australian Housing Landscape: Why This Matters Now Australia’s property market has some of the highest valuations globally, forcing many first-home buyers to take on huge levels of debt. Rising living costs and mortgage stress make financial support more critical than ever. By carefully timing your gift, you can help your children reduce stress, improve their financial lifestyle, and avoid the pitfalls of over-leveraging in an already challenging market. Final Thoughts Helping your children financially is a powerful way to improve their lives—but it’s the timing and approach that make all the difference. By waiting until they’ve reached financial maturity or after they’ve purchased a home, you can maximize the positive impact of your support. It’s not just about giving money; it’s about giving them the tools and freedom to build a financially stable and stress-free future. The information provided in this article is general in nature only and does not constitute personal financial advice.
A client once shared a poignant regret: “When I was working and the kids were young, I saved too much. It restricted what we did when the family was together.” This simple reflection struck a chord with me. It got me thinking about the delicate balance between saving for the future and living fully in the present. While we all know the importance of financial security, is it possible to save too much—at the expense of the moments that matter most? The Common Paradox of Life We’ve all heard the saying: It’s a cruel irony, isn’t it? In an ideal world, we’d flip the script, having the means to enjoy life when we’re young and energetic while still securing a comfortable retirement. But life rarely works that way. Many people save diligently during their working years, focused on paying off their home, raising their children, and building a retirement nest egg. Yet, some arrive at retirement with a bittersweet realisation: “We saved too much. We missed the chance to create memories when we had the time, energy, and our family around us.” Building Memories to Reduce Regrets For me, financial planning is about more than just numbers; it’s about reducing regret. In retirement, your job is to build memories and enjoy the life you’ve worked so hard for—not just watch your portfolio grow. And this begins long before you retire. Ask yourself: It’s important to recognise that once your children are grown, they’ll have their own lives, responsibilities, and families. The time to connect, travel, and create lasting memories is when they’re still with you. How Do You Know If You’re Saving Too Much? Finding the right balance between saving and spending isn’t easy. It’s why I often turn to one of my most valuable financial planning tools: long-term projections. This approach gives clients a clearer picture of their financial future, helping them make informed decisions about spending today versus saving for tomorrow. The Empty-Nester Advantage One key insight from decades of financial advising is that there’s often a natural progression in savings capacity: This shift often happens in the last 10-15 years before retirement, providing a window to accelerate savings without compromising your quality of life earlier. A Call for Balance This isn’t a green light to spend recklessly or ignore the importance of saving for retirement. Rather, it’s a reminder to strive for balance: Because once retirement and old age set in, the regret of missed opportunities is something no amount of money can fix. Final Thoughts Finding the balance between saving and living is one of the most challenging aspects of financial planning. But with the right tools and mindset, it’s possible to enjoy the best of both worlds: a secure future and a present filled with memories you’ll cherish forever. As always, this is general advice. For tailored financial planning, I recommend speaking with a qualified adviser who can help guide your unique journey. The information provided in this article is general in nature only and does not constitute personal financial advice.
Planning for retirement can be challenging enough, but when there’s a significant age difference between partners, it adds another layer of complexity. Different life stages often mean differing priorities, timelines, energy levels and financial needs. But with thoughtful planning and open communication, it’s possible to build a retirement that is secure and fulfilling for both partners. By having honest and meaningful conversations, you can uncover each other’s hopes, concerns, and goals, creating a retirement plan that feels balanced and fulfilling for both partners. The following prompts are designed to spark deeper, more meaningful discussions, helping you align your visions for the future and tackle potential challenges head-on. 1. What Does a Happy Retirement Look Like for Each of Us? Do you see yourself travelling the world, pursuing hobbies, or simply enjoying quiet days at home? Take some time to write down your individual goals, dreams, and non-negotiables. Share your lists, identify where they align, and discuss how to balance differing aspirations. The goal is to create a shared vision that respects and supports both partners’ priorities. 2. When Should Each of Us Retire? If one partner is ready to retire but the other is still building their career, it’s essential to plan for a phased approach. Discuss your ideal retirement dates and explore potential working arrangements. Can the older partner delay retirement slightly? Does the younger partner have long service leave entitlements or options for flexible or remote work? By planning your timelines together, you can find creative solutions to balance individual goals while making the most of the time you’ll share in retirement. 3. How Will We Stay Connected While at Different Life Stages? When one partner retires while the other continues working, it can disrupt routines, create imbalances, and make maintaining a connection challenging. Talk about how you’ll maintain your sense of partnership and shared purpose during this transition. Discuss activities you both enjoy and schedule regular time to share them. By prioritising connection and shared goals, you can maintain a sense of partnership and navigate this transition together. 4. How Do We Balance Our Different Energy and Mobility Levels? An age gap often means one partner has more energy or mobility than the other, which can impact your activities and lifestyle choices. Talk about how this difference will shape your travel plans, daily routines, and shared activities as you age. Should you prioritise physically demanding activities, like overseas travel, now? Would investing in a home designed for aging in place benefit you both in the long run? By addressing these concerns early, you can create a lifestyle that ensures you enjoy your time together, regardless of age or mobility changes. 5. What Are Our Greatest Fears About Retirement? Do you worry about financial insecurity, health challenges, or the possibility of loneliness in retirement? Take some time to reflect on and write down your individual fears or concerns. Share them with your partner and discuss how these worries can be addressed through planning or support. The goal is to foster empathy and understanding while building a retirement plan that alleviates these concerns for both of you. … Retirement planning isn’t just about numbers and timelines—it’s about understanding and aligning your dreams, priorities, and concerns as a couple. These five conversation prompts are a starting point to help you navigate the unique challenges of retirement planning when there’s an age gap. By taking the time to discuss your needs openly, you can begin putting in place a plan that optimises your timelines, finances, and lifestyle choices. If you’re not sure where to start, a financial adviser can help you develop a strategy tailored to your unique circumstances, ensuring a secure and fulfilling retirement. The information provided in this article is general in nature only and does not constitute personal financial advice.
Share markets are renowned for taking unexpected downturns and while history shows that markets eventually recover, this rebound in value can occasionally take time. Investors concerned about this risk might consider a stronger focus on income-generating investments. These can range from those that have no potential to lose capital value to ones with a higher risk of capital loss. Outlined below are some options. Investments with no ‘growth’ component The following will give you back what you put in plus interest: Online savings accounts pay a higher rate of interest because there is less cost involved in managing these accounts. The customer “does all the work” meaning the bank doesn’t need to allocate staffing resources. Interest on these accounts can vary substantially between providers and there can be enticing offers of extra or bonus interest for new customers or if you maintain a certain balance. The best advantage of these accounts is that you have access 24/7 to your funds. Cash management trusts are investment products which pool the deposits of other unit holders for investment in cash securities. Interest is calculated daily. There are no entry fees but most charge management fees. They frequently have minimum withdrawal amounts and may require notice to withdraw funds, however the trustee can decide to restrict withdrawals if it deems this is necessary in the best interests of the trust investors. CMTs are good for holding cash that is not needed for everyday living but offer easier access than term deposits. Term deposits can pay a higher interest rate than cash management trusts, although in more recent years, rates on term deposits are close to those offered for online savings accounts. The downside is that your funds are unavailable for the deposit term and penalties apply if you withdraw your money before the term expires. Terms range from three months to several years so you can choose the timing to suit your needs. Income can be paid regularly or at the end of the term. Investments that adjust in value to interest rates in the market: Fixed interest managed funds invest in bonds and bank bills, known as debt securities. Like cash management trusts, they pool investors’ funds to provide access to investments at the big end of the market. These are often used as the fixed interest component in a portfolio. They can have a wide range of fees depending on the underlying investments and may have a small growth component. Convertible notes are offered by companies and unit trusts. They can offer a good interest rate and at the end of the specified term the investor can choose to convert the notes to shares in the company or get their cash back. These are frequently traded on the stock exchange. The sale price depends on the market interest rates and market attitude to the company. Hybrid securities are investments that combine the elements of debt and equity. They are offered by companies that borrow from their investors and pay back the interest. However, if the company disappoints the market the underlying value can reduce. These securities generally have long terms (eg. 50 years) and can only be sold on the stock exchange if there is demand. Investments that have a growth component plus good income potential: Some Australian shares regularly offer fully franked dividends and also give you access to the tax benefits of imputation credits. To get the most from shares they should be held for the long term. Listed and unlisted property trusts are investments that pool investors’ funds to purchase real estate, usually commercial property. Depending on the types of property investments held, they can provide a higher level of income, some of which may be tax-free or tax-deferred. Listed property trusts are traded on the Australia Stock Exchange and provide more liquidity than unlisted trusts. The answer – a balanced portfolio For most investors the best solution is to have a ‘balanced’ portfolio – that is, a selection from each of the different market sectors. This should be tailored to the individual’s needs, providing the level of income required at an appropriate level of risk. To determine what suits your circumstances and needs best, consult with a licensed financial adviser. The information provided in this article is general in nature only and does not constitute personal financial advice.
Struggling to keep track of multiple debt payments each month? For many Australian homeowners, juggling different debts—whether it’s credit card balances, personal loans, or mortgage repayments—can become overwhelming. Debt consolidation could be a way to simplify finances and regain control. But before diving in, it’s important to understand the ins and outs of debt consolidation, along with the options and risks involved. Here’s a practical checklist to help you assess if consolidating debt is the best solution for your financial situation. Step 1: Understand What Debt Consolidation Involves Before diving into debt consolidation, let’s clarify what it means. Debt consolidation combines multiple debts into a single loan. Instead of paying off several balances at varying interest rates, you roll everything into one payment. This often makes managing your debts easier and could even lower your monthly payments. Step 2: Evaluate Your Current Debts and Expenses Start by listing each debt, including the balance, interest rate, and monthly payment amount. Are your current debts high interest? If so, a lower-rate consolidation loan could help reduce what you pay over time. Tip – Use an online debt consolidation calculator to help compare the cost of consolidating with your current debts. Step 3: Consider Your Debt Consolidation Options When it comes to debt consolidation, homeowners have several options and choosing the right one depends on your financial needs. Here’s how a few of the common options might look in practice: Personal Loan Suppose you have multiple high-interest credit card debts. By taking out a personal loan with a lower fixed interest rate, you could pay off all your cards at once and then make just one monthly payment on the loan, potentially saving on interest and simplifying your finances. Balance Transfer Credit Card Imagine you have a $5,000 credit card balance with a high interest rate. Transferring this balance to a credit card with a 0% introductory rate for 18 months would give you a period of interest-free payments. If you pay off the balance before the promo period ends, you could avoid paying interest altogether. However, it’s essential to stick to a repayment plan to clear the debt before the higher rate resumes. Home Equity Loan If you have equity in your home, this can be an option to access funds at lower interest rates. A home equity loan provides a lump sum that can be used to consolidate debts, while a home equity line of credit (HELOC) works more like a credit line that you draw from as needed. For instance, if you have $15,000 in credit card and personal loan debt, a home equity loan could help you pay off these balances with a lower interest rate, freeing up cashflow. Keep in mind, though, that your home acts as collateral, so this option requires a commitment to regular repayments. Step 4: Check Potential Risks Debt consolidation can simplify finances, but there are risks involved. Here are some to watch out for: After reviewing your debts, consolidation options, and potential risks, take stock. Are you looking for simplicity, lower interest rates, or lower monthly payments? Can you commit to responsible spending to avoid new debt? If you’re still unsure, a mortgage broker can help you assess your options, evaluate potential savings, and choose the best approach based on your financial goals. Take control of your debt today—reach out to a mortgage broker and explore your debt consolidation options. The information provided in this article is general in nature only and does not constitute personal financial advice.
Achieving a high income is a significant accomplishment. You’ve put in the hard yards, climbed the ladder, and now you’re pulling in the big bucks! But don’t be mistaken; a high income does not automatically equate to financial security. Just because the money is rolling in today doesn’t mean you’re protected from tomorrow’s uncertainties. Resting on your high-income earner laurels, assuming that a large salary guarantees long-term security without considering long-term financial planning, can be downright risky. So, before you get too comfortable, it’s time for a reality check. When “More” Becomes the Norm Earning more often leads to spending more, a phenomenon known as lifestyle inflation. As your income grows, so does your desire for bigger and better things—a nicer house, a new car, dinners at fine restaurants. This lifestyle upgrade can feel deserved, but without careful planning, it can leave you no better off financially than when you earned less. For instance, imagine a couple earning a combined $350,000 a year. On paper, that sounds like a strong financial position. But between a large mortgage, car loans, private school fees, and regular international holidays, their expenses could easily absorb most of their income. If an unexpected event like a job loss or economic downturn were to happen, they’d find themselves in a precarious situation, with little financial buffer. This is the danger of lifestyle inflation: it’s subtle and easy to justify, but it can undermine your ability to build real wealth. High Income ≠ Financial Security A high income can create the illusion of financial security. It’s easy to assume that as long as the money is coming in, you’re set for life. But without the right safeguards in place, a high income can actually mask financial vulnerabilities. Take Liam, for example. Liam, a 34-year-old marketing executive in Sydney, was earning $250,000 a year and living a pretty comfortable lifestyle. He assumed his high income meant he was financially secure. But when the pandemic hit, his job was made redundant, and without an emergency fund or sufficient savings, Liam found himself in financial distress within months. Liam’s story illustrates a key point: a high income is not a substitute for financial planning. If your finances aren’t structured to handle changes, even a hefty salary won’t protect you from financial uncertainty. How to Future-Proof Your Finances So, how do you make sure you’re not resting on your laurels, assuming that your high income will take care of everything? Here are some strategies to ensure you’re future proofing your finances, no matter how much you earn. 1. Create a Budget and Stick to It A budget is just as important for high earners as it is for those with more modest incomes. Avoid the temptation to spend simply because you can. Instead, allocate funds towards savings, investments, and building an emergency fund. 2. Build an Emergency Fund Even high earners need a safety net. A good place to start is having 3-6 months of living expenses in an emergency fund. This ensures that if something unexpected happens you’ll have the financial resources to cover your expenses without going into debt. 3. Invest Wisely Don’t rely solely on your salary—make your money work for you by building a diversified investment portfolio. The earlier you start, the better, as even small investments can grow significantly over time thanks to compound growth. Don’t wait—time is your biggest asset when investing! 4. Plan for the Long Term Even if retirement seems far away, it’s never too early to start planning. Superannuation is a tax effective structure for building wealth and making contributions to super can be a tax effective strategy for high income earners! 5. Don’t Overlook Insurance Insurance might not be the most exciting part of financial planning, but it’s essential. Income protection, life insurance, and health insurance are vital tools to safeguard your financial future. Take Control Before Life Happens While earning a high salary certainly opens doors to a more comfortable lifestyle, it also comes with the risk of complacency. The belief that you’re financially set simply because you’re earning more is dangerous. Lifestyle inflation, lack of an emergency plan, and failure to invest wisely can all leave you vulnerable when life throws a curveball. It’s not about depriving yourself of the things you enjoy—it’s about ensuring that your financial future is secure, so you can continue enjoying them for years to come. So, don’t rest on your laurels. Take proactive steps now to secure your financial future. You’ve worked hard for that high income. Now its time for that income to work for you! The information provided in this article is general in nature only and does not constitute personal financial advice.
Debt is a fact of life; some might say it’s a necessity. Rarely is a home or large-ticket item purchased without finance of some kind. Australians typically manage their financial obligations well, but rising interest rates, cost of living pressures and unexpected expenses combine to place stress on a household budget. In an increasingly cashless economy, it’s difficult to keep track of spending, and before you can say, tap-and-go, the morning latte and toastie has maxed out the credit card. Most people tighten the belt and get back on track. Unfortunately, others find themselves caught in a downward spiral that quickly gains momentum until realising they’re in over their heads. Failure to meet your financial obligations may result in you being contacted by a debt collection agency as creditors seek to recoup their losses. While this is traumatic, keep your cool and remember that you have rights. According to MoneySmart.gov.au a debt collector can only contact you: Debt collectors may: Debt collectors cannot: If you believe a debt collector, or agency they represent, has acted outside of their boundaries, you are within your rights to take action. Violent or threatening behaviour is never acceptable; immediately contact the police. Alternatively, if the collectors are intimidating or harassing you, write to them or their agency to report the behaviour and request it be stopped. If this doesn’t work, reach out to the Australian Financial Complaints Authority on 1800 931 678 for advice. Debt collectors aside, you must take action to manage your debt. No debt ever went away because it was ignored, but there are ways to dial down the pressure. Here are some steps you can take today to get started: You can also seek professional assistance from a qualified financial adviser. They’ll work with you to create a realistic strategy for managing your expenses and guide you in developing a plan to move forward and eliminate debt. Debt can be debilitating and seem overwhelming, but by understanding your rights, knowing where you stand financially and seeking professional advice and support, you can take back control of your finances and look towards a comfortable financial future. The information provided in this article is general in nature only and does not constitute personal financial advice.
Saving for a first home often requires a significant amount of discipline and sacrifice. The challenge of accumulating the necessary deposit can feel overwhelming, making it difficult to maintain motivation. Everyday distractions, such as weekend outings with friends or the latest gadgets, can easily derail savings efforts. A common issue is the perception that long-term savings goals are unattainable, which can lead to a lack of motivation to forego immediate pleasures. Traditional methods of managing finances may not always address this issue effectively. Enter loud budgeting—a strategy designed to tackle these challenges head-on. Loud budgeting is a goal-oriented approach that involves openly sharing savings goals with trusted friends and family, creating a system of accountability. The transparency of loud budgeting helps maintain focus and drive. Here’s how loud budgeting works: Incorporating loud budgeting into your routine can transform the savings process into a structured and motivating experience. Each progress update on the tracker brings a sense of accomplishment, and reaching milestones is celebrated with those who offer support. Consider a scenario where you aim to save $20,000 for a home deposit within 16 months. By adopting loud budgeting, you break down the goal into manageable monthly targets. For example, you set a target to save $1,250 each month. At the beginning of the process, you create a colourful chart and track your progress regularly. You use budgeting apps to monitor your savings and share updates with your support network. Every time you hit a monthly target, you celebrate with your family or friends, reinforcing your commitment. Over the course of these 16 months, this approach helps maintain your motivation despite encountering challenges such as missed trips or unexpected expenses. By consistently tracking your progress and celebrating milestones, you remain focused and driven. As each milestone is achieved, the sense of accomplishment grows, making the final goal of reaching the $20,000 deposit feel attainable. By the end of the 16 months, you successfully reach your target amount. The journey has been marked by steady progress, accountability, and shared celebrations, showing how loud budgeting can make saving for a home feel like a rewarding team effort. Loud budgeting might not be for everyone, but it’s a great way for many people to hit their financial goals. It can make saving for a home feel like less of a solo mission and more of a team effort that’s both rewarding and fun. The information provided in this article is general in nature only and does not constitute personal financial advice.
FORO – the fear of running out. I’d never heard the expression until I met Mark and Susan. Of course I’d heard of FOMO, the fear of missing out, but never FORO. As the newly-retired couple sat across from me, explaining how they were so afraid of running out of savings that they were not enjoying the retirement they’d worked so diligently for, I grasped the meaning of FORO immediately. They rarely went out for dinner, bought anything new or – heaven forbid – took a holiday. After a lifetime of saving hard, paying off a mortgage and raising a family, Mark and Susan were naturally frugal, but FORO had left them feeling vulnerable and afraid of the future. After two decades as a financial planner, I’d come across this situation before, although, it is unfortunately becoming more common. Mark and Susan had never sought financial advice before and weren’t sure what I could do to help, but came to see me because they didn’t know where else to turn. When I assured them that there was plenty I could do to help, they visibly relaxed. I explained that the key to overcoming FORO was having a well-structured financial plan. After I outlined my 5-step strategy, they were eager to proceed. The steps we took were as follows: 1. Conduct a financial assessment By thoroughly assessing their current financial position (superannuation, savings, investment and social security entitlement), I formulated a picture of where they were at, and their future cash flow projections. 2. Establish a sensible strategy Working together, we identified essential living expenses and discretionary expenses, then allocated funding that balanced financial security with lifestyle goals. Next, we determined a retirement investment portfolio with a sensible withdrawal rate to support their retirement plans. 3. Create an emergency buffer In my experience, the what if factor is a major concern for retirees. What if…I become ill? What if…the fridge breaks down? What if…the car dies? These questions, and more, play on peoples’ minds to the point where they fall back into a FORO mind set. To ease their anxiety, I recommended they include a contingency fund in their portfolio to ensure that unplanned expenses were covered. That way, if something unexpected pops up, their retirement lifestyle strategy remains on track. 4. Enjoy the early years FORO had been holding Mark and Susan back for too long. I explained that hobbies, travel and social activities are crucial to mental well-being. So once we had established a responsible financial plan, I showed them how they could afford to spend, sensibly, and enjoy themselves. I especially encouraged them to make the most of their early retirement years, while they were fit and energetic. 5. Schedule regular reviews The final step in the process was my ongoing commitment to Mark and Susan. Retirement planning is not a set-and-forget strategy; it’s a journey through every stage of life – physical retirement being one of those stages. By regularly reviewing their financial position, I helped Mark and Susan monitor their spending and investment performance, and made portfolio adjustments that kept them in control of their retirement plan. Last week I bumped into the couple on the street. They were glowing with excitement and told me they’d just booked a Pacific cruise. Of course, I was thrilled for them – it was a big tick off the bucket list! But when Susan said they’d turned FORO into FOMO and were living their best lives, well, I’ll just say it was one of those moments when I absolutely love my job! The information provided in this article is general in nature only and does not constitute personal financial advice.
For many Australians, particularly young Australians, the dream of home ownership is often accompanied by the reality of carrying student loans, known as HECS-HELP debt. Understanding the impact of HECS debt on your ability to secure a home loan can help you plan for and navigate the home loan process. Case Study Sarah, is a 32-year-old marketing professional from Melbourne. She has a stable job with a steady income and has managed to save a decent deposit for her first home. However, like many Australians, Sarah carries a HECS debt from her university education. What is HECS-HELP debt? HECS-HELP is a loan offered by the Australian government to pay for studies at a university or approved higher education provider. Once a person earns above the compulsory repayment threshold, loan repayments are automatically deducted from their pay through the ATO. There is no interest on the loan, but the debt is annually indexed against inflation. Sarah’s Home Loan Goals Sarah’s goal is to purchase a two-bedroom apartment close to the city. She is aiming to take out a $450,000 home loan, considering her savings and the property prices in her desired area. Sarah is concerned about how her HECS debt will affect her home loan application and how she can maximise the amount she can borrow. The Application Process and the Impact of Student Loans When Sarah approached a mortgage broker to discuss her home loan options, she learned that her HECS debt, while interest-free, would still impact her borrowing capacity. Sarah’s potential lenders must consider her ability to meet all financial obligations, including her HECS repayments. This could potentially lower the loan amount Sarah qualifies for, as lenders assess her debt-to-income ratio. Strategies and Solutions Sarah’s mortgage broker advised that there are several strategies she can consider to enhance her borrowing capacity despite her student debt: Outcome By proactively managing her finances, seeking professional advice, and implementing strategies to manage her HECS debt, Sarah was able to strengthen her home loan application. She successfully secured a home loan with a competitive interest rate, allowing her to purchase an apartment within her parameters. The impact of student loans on home loan applications is a significant consideration for many young Australians. But the good news is that there are steps you can take to minimise the impact of HECS-HELP debt. Doing so enhances the chances of securing a home loan, and empowers you to make informed decisions on your financial journey. Reach out to us today and take the first step towards home ownership! The information provided in this article is general in nature only and does not constitute personal financial advice.
Does your Money Mindset have your back? Or… Is it holding you back? If you’ve never really thought about it, you’d be forgiven. When it comes to our financial success, we tend to focus on things like income, investments, and expenses. It makes sense to put our financial position down to how much we earn or spend, or the performance of our investments. But what about the role of our Money Mindset? What is a Money Mindset? A money mindset is your set of beliefs and attitudes about money. It shapes how you make financial decisions, how you perceive wealth, and how you react to financial challenges. Understanding your money mindset is important because it can either support you in achieving financial success, or hold you back from it. There are various types of money mindsets, but they often fall into two broad categories: Abundance Mindset vs. Scarcity Mindset Abundance Mindset: An abundance mindset is the belief that ample opportunities exist to earn, grow, and enjoy wealth. People with this mindset see the world as full of potential and possibilities. They tend to be optimistic about their financial future and are willing to take calculated risks. Scarcity Mindset: A scarcity mindset, on the other hand, is the belief that resources are limited and difficult to obtain. People with this mindset often focus on what they lack rather than what they have. This can lead to fear, anxiety, and a reluctance to take risks. Fixed Mindset vs. Growth Mindset Fixed Mindset: A fixed mindset in a financial context means believing that your financial abilities and knowledge are static and unchangeable. People with a fixed mindset might think they are either “good” or “bad” with money and that this cannot be altered. Growth Mindset: A growth mindset is the belief that financial skills and knowledge can be developed through effort and learning. Individuals with a growth mindset see financial challenges as opportunities to improve and grow. Money Mindsets in Everyday Life Having explored the concepts of abundance vs. scarcity and fixed vs. growth mindsets, let’s look at how these money mindsets might manifest in everyday life: Kylie believes there are many ways to grow her wealth. She takes an online investing course, consults a financial adviser, and starts a diversified investment portfolio. She views market fluctuations as learning experiences and opportunities for growth. Jacob believes he will never be good with money and that financial success is reserved for others. He avoids investing due to fear of losing money and prefers to keep his savings in a low-interest account. He often feels stressed about his financial future and is reluctant to seek advice. Taylor is optimistic about her financial future and believes in plenty of opportunities. However, she thinks her financial skills are unchangeable. She sticks to familiar, low-risk investments and dismisses new strategies, missing out on potentially higher returns. Oscar grew up believing money is scarce and financial security is hard to achieve. Despite this, he commits to improving his financial situation through education. He starts with low-risk investments to build confidence and gradually diversifies his portfolio, overcoming his fears over time. Strategies to shift a negative Money Mindset If you’ve identified that your money mindset might be holding you back, don’t worry! The following strategies can be used to help you to shift your mindset to a more positive one: Your money mindset plays a crucial role in your financial success… it should have your back, not hold you back! By identifying and overcoming negative financial beliefs, you can create a healthier relationship with money and achieve your financial goals. Take the first step today by reflecting on your financial mindset and seeking professional advice to guide you on your journey. The information provided in this article is general in nature only and does not constitute personal financial advice.
The new financial year provides an opportunity for a fresh start for your finances. Make this the financial year you get on top of yours… for good! We’ve broken it down into six bite-sized, manageable steps for you to tackle over six months, because real change takes time! The below is a suggested path to a New Financial You, however, you can choose your preferred order and pace. July: Goal Setting What is it that you want? I mean REALLY want? As with any goal, your financial goals should be SMART – Specific, Measurable, Achievable, Relevant, Timely. Whether you’re wanting to build an emergency fund, get out of debt, or save for a specific goal, write down your goals in detail and then revisit these regularly to remind yourself of what you’re working towards. August: Set your Budget A budget helps you see what’s coming in, what’s going out and most importantly how much you have to allocate towards your goals. There are plenty of free templates online so find one that works for you and add in your personal income and expenses. Tip – Go through your last three months’ bank statements to get details of your spending. September: Set up a Savings Plan You can do this by working out how much money you need for a particular savings goal and by when, then breaking it down into regular amounts to be set aside. Example – If you want to save $2,000 for Christmas by December 1st, you’ll need to set aside $154/week from September 1st. Tip – Automate savings by setting up a regular transfer. October: Super Check It’s time to health check your superannuation: Make sure your contact details are up to date to ensure you’re not missing out on important correspondence. Do you have a current beneficiary nomination in place? A valid beneficiary nomination will direct your super fund on how you would like your super benefits to be paid, if you were to pass away. How much is your super costing future you? There are a whole range of fees that might be funded from your super, including administration, investment, and adviser service fees, all of which will have an impact on your retirement savings. Do you know how you’re super is invested? Is it Conservative or Growth? How well has it performed over the long term? Some important things to consider when choosing an investment option include your life stage, investment horizon and comfort for risk. November: Insurance Review There are a range of insurances that offer financial security for you and your family, including: This month, get to know your current insurances and consider whether the types and amounts are suitable for your needs. December: Estate Planning Estate Planning involves documenting what you want to happen in the event you pass away or become incapacitated. It might include Wills, Powers of Attorney, Health Directives and Guardianship nominations. If you don’t have these in place already, it’s time to build out your Estate Plan. If you do, it’s time to dig these out for a review. Congratulations, you made it! If you’d like some extra support on your journey, reach out to your Financial Adviser today for help with achieving your financial goals! The information provided in this article is general in nature only and does not constitute personal financial advice.
In his 2024 Federal Budget speech, treasurer, Jim Chalmers, announced that ‘The number one priority of this government and this Budget is helping Australians with the cost of living’. But what exactly does that mean? Let’s take a closer look at what the 2024 Budget proposes – An average tax cut of $1,888 in 2024-25 The budget proposes significant tax relief for ALL Australian taxpayers to alleviate cost-of-living pressures, including reduced tax rates, adjustments to the income thresholds, and increased low-income thresholds for the Medicare levy. This measure aims to boost disposable income and encourage economic activity by allowing Australians to retain more of their earnings. $300 back in the pocket for ALL Australian Households To combat rising energy costs, the government has allocated $3.5 billion for a one-time $300 energy bill rebate for all Australian households, designed to directly reduce headline inflation by about 0.5 percentage points in 2024-25 without adding to broader inflationary pressures. This initiative also extends to one million small businesses, receiving a $325 rebate. Superannuation contributions on paid parental leave The 2024 budget integrates enhancements to parental leave and childcare into comprehensive support for families. It includes a $1.1 billion investment to extend superannuation contributions to government-funded Paid Parental Leave, improving financial security for new parents. Additionally, the budget boosts childcare support, aiming to make childcare more affordable through increased subsidies, reducing the financial burden on families and supporting parents’ return to work. These measures are part of a broader effort to provide more robust support for families and promote gender equality. $3 billion in student debt… wiped In an effort to alleviate the burden of education costs, the budget proposes a change to the way the government calculates HELP debt indexation, erasing $3 billion in student debt for over 3 million Australians. An investment in education for Australians The budget commits to reforming tertiary education and increasing vocational training funding, aligning skills training with market needs. Specifically, it allocates $88.8 million to provide 20,000 new fee-free TAFE places, including pre-apprenticeship programs relevant to the construction industry. Additionally, the government is introducing Commonwealth Prac Payments to support students undertaking mandatory placements, offering $319.50 per week to more than 73,000 eligible students, which includes those in fields like nursing and social work. This investment is part of a broader effort to align skills training with labor market demands and support sectors critical to economic growth. Supporting small businesses To aid small businesses, the 2024 budget extends the $20,000 instant asset write-off for an additional year, enabling continued investment in necessary business equipment. This extension is designed to enhance the cash flow of small enterprises and encourage further economic activity among local businesses. Additionally, the budget includes investments to support the mental and financial well-being of small business owners, recognising the unique challenges they face and bolstering the resources available to them for sustainable operation. Access to affordable medicines The budget allocates up to $3 billion to reduce the maximum PBS co-payments. This includes a one-year freeze on the maximum patient co-payment for everyone with a Medicare card and a five-year freeze for pensioners and other concession cardholders, ensuring that no pensioner or concession card holder will pay more than $7.70 for PBS-listed medications until 2030. … And an increase to health funding The budget allocates $888.1 million to expand mental health services. This includes funding for new and existing programs that provide critical support for individuals facing mental health challenges. An additional $2.2 billion is directed towards improving the aged care system, and investments are made in strengthening Medicare with a focus on urgent care clinics, reducing hospital admissions, and supporting regional and remote health services. This expansion aims to provide wider access to necessary health services, significantly improving health outcomes and making healthcare more affordable and accessible to more Australians. A 10% increase to Commonwealth Rent Assistance In response to the housing affordability crisis, the budget increases Commonwealth Rent Assistance by 10%, benefiting nearly 1 million households. This follows a 15% increase from the previous year, marking a substantial boost to aid renters, especially given the rising rental market costs. Housing affordability The government is investing $6.2 billion in new housing initiatives to tackle affordability and accessibility. This funding supports the construction of more homes, including affordable and social housing options, addressing critical housing shortages and supporting community infrastructure development. The 2024-25 Federal Budget is strategically focused on alleviating financial pressure through targeted support measures. By understanding and applying these benefits, Australian households can better navigate the challenges of rising living costs. For tailored advice on how to adjust your financial plan in light of the new budget measures, consider consulting with a financial adviser or accountant. They can help you understand the specific impacts on your personal finances and strategise accordingly. The information provided in this article is general in nature only and does not constitute personal financial advice.
When it comes to getting the most (money) from your annual tax return, there is usually a lot to think about, so we’ve identified a few options that could open the door to some opportunities to save on tax. The key here is to plan ahead. Deductions — lower your tax liability If you have some spare cash available, paying for certain expenses before June 30 could mean you get your tax break back from the ATO earlier. Expenses paid in July could leave you waiting more than 12 months for the return. A popular expense in this category is prepaying interest on an investment loan, but be careful because not all expenses qualify for a tax deduction in advance. This year the ATO is focusing on work-related expenses. If you are planning to claim expenses for things like a home office, mobile phone, tools and equipment, etc, make sure you claim only eligible expenses and have the paperwork to substantiate them. You can claim the premiums you have paid for your income protection insurance as a tax deduction. Note that you can only claim the portion of the premium that covers you for loss of income, not for any benefits of a capital nature. Premiums for other personal insurance cover such as life, critical care or trauma cannot be claimed. You also can’t claim deductions for premiums that are paid from your superannuation contributions if your policy is held in your fund. Super contributions — don’t waste the limits June 30 is not just about deductions for expenses. It’s also a good time to review your superannuation contributions to date and take advantage of the annual caps. The annual limit for these types of tax-deductible contributions is $27,500 per annum, regardless of age. If you’re an employee, this limit covers both employer super guarantee and salary sacrifice contributions. How much has your fund received in contributions so far this year? Do you need to review and adjust your current arrangements? Anyone under 65 (whether working or retired) can contribute $110,000 each year to super as after-tax or non-concessional contributions. You can also contribute $330,000 in a single year by bringing forward the limit for the following two years. But – when it comes to super there’s usually a ‘but’ – check your total super balance to ensure any extra contributions do not exceed the general balance transfer cap which is currently $1.9 million. And one final point on super contributions – the total contributed is based on how much is received by your fund, not when you sent it to the fund. Another reason why planning ahead is crucial. These are just a few ways to manage how your money is taxed. Depending on your circumstances, other options may be available. Your licensed adviser can work with you to help you achieve what is best for you this financial year. But please don’t leave it too late. The information provided in this article is general in nature only and does not constitute personal financial advice.
Resilience is the ability to quickly recover from setbacks, and while setbacks can come in many forms most of them will have a financial component. So what can you do to build financial resilience? Expect the unexpected Rarely do we get advance warning that something bad is about to happen to us, so the time to develop your resilience strategy is now. And while we don’t know the specifics, we can anticipate events that would throw our finances into disarray. A house burning down or a car being stolen. Not being able to work due to illness or injury. The death of a breadwinner or caregiver. With some idea of the type of threat we face we may be able to insure against some of them. If you have taken out any type of insurance policy you’ve already made a start on your resilience plan. Create buffers You can’t insure against every possibility, but you can build financial buffers. This might simply be a savings account that you earmark as your emergency fund that you contribute to each payday. If your home loan offers a redraw facility you can also create a buffer by getting ahead on your mortgage repayments. Buffers can be particularly important for retirees drawing a pension from their super fund. Redeeming growth assets for cash in order to make pension payments during a market downturn can lead to a depletion of capital and reduction in how long the money will last. By maintaining a cash buffer of, say, two year’s worth of pension payments, redemptions of growth assets can be deferred, giving time for the market to recover. Cut costs The Internet abounds with tips on how to cut costs and save money. In difficult economic times cost cutting can help you maintain your financial buffers and important insurances. Key to cost cutting is tracking your income and expenditure and yes, that means doing a budget. Find the right budgeting app for you and this chore could actually be fun. Invest in quality There are many companies out there that have long track records of consistently pumping out profits and dividends. They may not be as exciting (i.e. volatile) as the latest techno fad stocks but when markets get the jitters these blue chip companies are more likely to maintain their value than the newcomers. This is important. The more volatile a portfolio the more likely an investor is to sell down into a declining market. This turns paper losses into real ones, depriving the investor the opportunity to ride the market back up again. The other key tool in creating resilient portfolios is diversification. Buying a range of investments both within and across the major asset classes is a fundamental strategy for managing portfolio volatility. With a well-diversified portfolio of quality assets there is less need to regularly buy and sell individual investments. Unnecessary trading can create ‘tax drag’ where the realisation of even a marginal capital gain triggers a capital gains tax event and consequent reduction in portfolio value. Take advice Building financial resilience can be a complicated process requiring an understanding of a range of issues that need to be balanced against one another and prioritised. Your financial planner is ideally placed to assist you in developing your own, personalised plan for financial resilience. The information provided in this article is general in nature only and does not constitute personal financial advice.
The price of a lowly head of lettuce has never been a recognised barometer of the strength of the Australian economy, that is until the media started reporting iceberg lettuces were selling for $10 a head. Suddenly, this has become a touchstone for everything that is wrong with the domestic economy. Prices are on the rise, spurred by higher transport costs and climate-based disruptions to the food chain, and the cost of living is surging. While some relief came with an unexpected 5.2 per cent increase in the basic wage, a move endorsed by the newly elected Federal Government, the prospect of similar inflation linked wage increases were dismissed as a ‘baby boomer fantasy’ by the trade union movement. Nonetheless, fears of further wage increases remain. So, all eyes are now focused on price rises with the most recent figures from the Australian Bureau of Statistics, pegging Australia’s rate of inflation at 5.1 per cent per annum. As bad as this might seem, it is still one of the lowest inflation rates among OECD nations, beaten only by Japan and Switzerland, at the bottom of the inflation table with 2.5 per cent, followed by Israel on 4.0 per cent, and Korea and France with 4.8 per cent. However, with inflation in the United States at 8.3 per cent and 7.8 per cent in the United Kingdom and both countries expecting this rate to go higher, the fear is Australia’s rate will start moving towards 7 per cent – a rate not seen in Australia for more than 20 years. Inflationary fears were made worse by the Governor of the Reserve Bank, Phil Lowe, calling for “front-loaded” interest rate hikes to avoid stagflation and warning against any super-sized wage claims. Just the mere mention of stagflation, something not seen since the seventies, has sent a shiver through the economy. This drove fears that home loan interest rates will also be pushed higher, causing more financial stress for those who have borrowed heavily and bought property at the recent record-high prices. While all four of the big banks are reporting current home loan arrears at record low levels and the majority of customers are tracking well ahead on their home loan repayments, fears still remain about the impact of higher interest rates. Property prices have already started to slide with industry analysts expecting the average prices in Melbourne and Sydney to fall by 10 per cent this calendar year and by potentially as much again next financial year. Meanwhile, the value of cryptocurrencies, which seems to magnify prevailing market sentiments, has collapsed across the board with values falling by as much as 70 per cent. The largest single cryptocurrency, Bitcoin, which was trading at just $US67.81 in July 06, 2013, soared as high as $US68,000 last November, is currently trading at $US20,200, with little market enthusiasm. While cryptocurrency was once touted as being something of a safe haven and a means of diversifying investment portfolios, it is fast becoming a magnifier of market excess and pessimistic economic sentiment. The information provided in this article is general in nature only and does not constitute personal financial advice.
Investment and portfolio building has traditionally been a male-dominated world, but these days more women are trading on the market – and they’re good at it! According to an ASX Australian Investor Study completed in 2020, female investors make up 42% of Australian investors, yet 45% of those only began investing in the year prior to 2020. It’s intriguing that younger women – known as Next Generation Investors aged 18 – 25 – are taking up stock portfolios. Their goals include saving for a holiday (50%) or paying down existing debt (34%). The ASX study highlighted a few other interesting points: Women prefer products more commonly understood, such as direct Australian shares (53%), residential investment property (37%) and term deposits (31%). Women are less concerned than men about low interest rates and market fluctuations, but consider issues like whom to trust, hidden fees and liquidity. While men are more accepting of market volatility, women prefer stable or guaranteed investment returns. While we’re about breaking down stereotypes, the study found that women are generally more successful in their investments than men. This could be because women are cautious by nature, taking longer to research investment choices and, once settled, preferring to ride out market ups and downs. Conversely, men tend to regularly review their portfolios and trade aggressively, buying and selling assets, potentially incurring additional fees and losses due to market swings. In recent times there has been a surge in Australian women backing other Australian women in start-up business ventures. According to SmartCompany.com.au, female venture capitalists are recognising that entrepreneurial women face a specific set of challenges, such as a lack of networking and mentoring opportunities, and lingering perceptions around gender-based work/family roles. Further, support for Indigenous businesswomen is increasing as women’s investment networks strive to encourage women from diverse backgrounds. Fact is, almost 40% of Australian women who are single for reasons of divorce, widowhood or otherwise, will retire in poverty. Issues around the gender pay gap are recognised contributors to women generally having less money in savings and/or superannuation: women save an average of $598 per month compared with men $839. In an effort to improve these figures, many women strive to secure their financial futures through self-education: magazines, blogs, podcasts etc. Others seek professional advice through referral from a trusted friend or relative. The financial planning industry recognises that more women are actively investing. Financial advisers are developing strategies specific to women’s needs and goals – in fact, the industry is well-served by a large number of financial professionals who are women. The Financial Planning Association of Australia (FPA) can put you in touch with a qualified professional adviser, just like us, so you can ensure all your decisions are well-informed and that your personal needs and goals are considered. The information provided in this article is general in nature only and does not constitute personal financial advice.
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry delivered its final report in February 2019, capping off a process that revealed the unethical and, in some cases, illegal practices of some of Australia’s largest banks, insurance and other financial services companies. Many of the Royal Commission’s recommendations are aimed squarely at financial services companies, and they should lead to changes in corporate attitudes and practices that will deliver indirect, and hopefully positive changes to many consumers. The Royal Commission also made a number of recommendations that will have a more direct impact on investors. Unfortunately, these may not always be for the better. Even though the Royal Commission unearthed a wide range of bad behaviours, it’s important to acknowledge the large number of financial advisers who have always adhered to high ethical standards while delivering great outcomes to their clients. Clients of these advisers may see little change in the relationship with their adviser and how their money is managed. So what changes are likely to affect consumers? A ban on conflicted remunerationConflicted remuneration arises when an adviser has an incentive, such as a sales bonus, to recommend an investment product. Conflicted remuneration was banned some time ago, but existing arrangements were ‘grandfathered’. These grandfathered arrangements will now cease. An end to trailing commissionsInvestment and superannuation products may pay the recommending adviser an ongoing annual or ‘trailing’ commission. The expectation is that the adviser will continue to provide ongoing review of the suitability of the product and recommend changes when warranted. Unfortunately, the Royal Commission revealed numerous cases where fees were charged and no advice given. This extended to fees being charged to dead peoples’ accounts. All investment and superannuation trailing commissions will cease from 2021. While this should lead to higher investment returns, many consumers will miss out on proactive follow up from advisers unless they ‘opt-in’ and agree to pay for advice. As the cost of such advice may be uneconomic for investors with smaller portfolios, the end of trailing commissions may deliver mixed outcomes. One prediction is that it may spark an increase in so called ‘robo advice’, where automated systems deliver lower cost, albeit more generic advice. Increased educational requirements for advisersNew advisers must now hold a relevant, degree level qualification. Existing advisers without such qualifications will need to undertake further study. While qualifications are important, they overlook the value of the real-world knowledge of experienced advisers. Many older advisers may retire rather than undertake additional study, which may lead to a shortage of advisers. Incidental outcomesAnother indirect outcome of the Royal Commission is that many of the larger banks and insurance companies have decided to sell off their financial advice businesses. This also has the potential to reduce the number of active advisers but may see a rise in the number of smaller, independent advisory firms. The Royal Commission has delivered a major and necessary shake-up of the financial services industry. To find out what the direct, personal impacts may be for you, talk to us. We’re here to help. This is general information only
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