Independent Wealth Management for long term wealth in Sydney

Investing for Long-term Wealth with Independent Financial Advice

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The Plutus Financial Guidance guide to investing for long-term wealth  

It’s proven that time spent investing in the market is more often important than the timing of the market.  This is a major point when investing for long-term wealth

2020 has being a rollercoaster year in more ways than one. It’s clear that those with a diverse investment portfolio and a solid long-term strategy have come out the other side relatively unscathed.   

When it comes to investing for the future, starting out early is imperative for ensuring long-term results. Whether you are years away from retirement or starting a new job, it’s crucial to have a few financial goals defined to frame your investment strategy. This way individual outlying years such as 2020, aren’t such a worry.  

The unfair advantage of compound interest?

Compound interest occurs when you earn additional interest on top of simple interest by reinvesting and making regular contributions over a consistent period of time.  This may sounds simple, yet it’s one of the major forgotten elements in retail investing (an individual who purchases securities for his or her own personal account rather than for an organisation).  

Dollar-cost averaging when investing for long-term wealth

Making regular instalments into your investment portfolio is key to delivering long-term results. Another common yet simple strategy is dollar-cost averaging. Instead of investing all of your capital in the one go, the idea is to invest the same, fixed amounts regularly, over a long period of time.  

Regardless of market conditions, this strategy allows you to increase your investment.  The easiest way to understand how dollar coast averaging works is to stay engaged with your investment. Calculating how investment balances can build up over time, with a combination of regular contributions, reinvestment, and compounding returns.    

Independent Financial Advice for 2020 and beyond

Increasing wealth through smart, calculated investing is a proven strategy.

Investors who are disciplined and armed with a strong, researched investment cases are poised to realise favourable returns in the years to come. Longer-term strategies mean your investment can be left to generate returns without the need to worry about the market’s peaks and troughs.  

Having a clear financial plan, consistent contributions, and diversified strategy will ensure a solid growth for your nest egg. As with many things, the longer you leave it to grow the better the financial return.  

Independent financial advisors such as Vince Lam are industry professionals. They specialise in building financial roadmaps tailored to you and your family’s needs, offering you peace of mind by ensuring you are on track to reach your financial goals.

early superannuation access during covid, piggy bank

Should I Access My Superannuation Early?

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It is very clear that there’s an extraordinary amount of changes due to the Coronavirus (COVID-19) health crisis. We have all been impacted financially and several of us are seeking information in regard to how the superannuation and retirement system can be of assistance during this critical time.

Key points about the Australian government’s super early access scheme:

In response to the impact of COVID-19, the federal government has announced new stimulus packages. Now, there is the possibility for Australian’s to gain early access to their superannuation fund.

Depending on your super balance, you may be eligible to apply for the early release of a payment up to $10,000.

To be eligible, citizens or permanent residents of Australia and New Zealand must require the early release of their super to assist them to deal with the adverse economic effects of COVID-19.

One of the following circumstances must apply (as cited by the Australian Taxation Office):

  • you are unemployed
  • you are eligible to receive one of the following
    • JobSeeker payment
    • Youth Allowance for job seekers (unless you are undertaking full-time study or are a new apprentice)
    • Parenting payment (which includes the single and partnered payments)
    • Special Benefit
    • Farm Household Allowance
  • on or after 1 January 2020 either
    • you were made redundant
    • your working hours were reduced by 20% or more (including to zero)
    • you were a sole trader and your business was suspended or there was a reduction in turnover of 20% or more (partners in a partnership are not eligible unless the partner satisfies any other of the eligibility).

For more information in regard to assessing your eligibility, please visit Australian Taxation Office (ATO).

It is very important to check your super balance prior to applying through the Australian Taxation Office. It is essential to check that you have enough funds to cover your payment requests.

What are the benefits:

  • Any payments made through this early release scheme will be tax free.
  • Accessing super funds early will not impact access to social security payments. The funds withdrawn will not be counted as income payments and therefore do not impact your additional allowance received from the government.
  • Useful if experiencing distress due to financial situation.
  • Supporting your family and yourself during this crisis.
  • Assisting businesses with their essential expenses – most especially sole traders.

What are the disadvantages:

  • Withdrawals from your super fund during a market downturn such as this could result in realising current market losses, without giving your superannuation sufficient time to recover – this will of course depend on your age as well.
  • Retirement savings will be reduced significantly. You could well be giving up the gains of a future market recovery. Additionally, it’s important to understand the potential compound return over the course of the next 10, 20 and 30 years on the amount that you have subsequently withdrawn.
  • You will also have to bear in mind that if you do not have enough funds in your super to cover the costs of insurance premiums, your insurance will cease. There is also difficulty in reinstating insurance in the future at the same levels after it has been cancelled.

It is important to consider seeking financial advice before submitting your application to the Australian Taxation Office for the early release of your super.

Please don’t hesitate to get in contact with our team at Plutus Financial Guidance. Our Financial Advisors will be pleased to assist you with this critical decision-making process.

Independent Wealth Management Advice, retired couple in sydney

Independent Wealth Management Advice

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Everybody has dreams and aspirations. Variety is the spice of life.

Some people may wish to fly to the moon, others would prefer to sail around the world or drive around this great Australian land. Perhaps your goals are a little closer to home and you simply wish to be the best parent or grandparent you can be.

Whatever your goal may be, it starts with a plan.

Plutus Financial Guidance provides a wide range of independent wealth management services tailored to a broad range of client goals, delivering the tools for certainty and peace of mind regarding your financial position.

We pride ourselves on the integrity and purpose that is common throughout all of our financial services. We believe that financial advice should be transparent and structured, so our clients can achieve their aspirations over the near and longer term. 

Consider your personal financial position:

  • Is your home and/or investment property paid off without mortgage remaining?
  • What are your income streams? Employment? Investments? Business?
  • Do you manage multiple assets?

Vince Lam and the Plutus Financial Guidance team are continuing to work safely during the COVID-19 pandemic. We will continue to provide independent financial advisory services via online video consultation to those who prefer.

Speak to our friendly team regarding wealth management advice and our broad range of financial advisory services. Get in contact today.

You can also read about wealth protection by visiting our services page, via this link.

Independent Financial Advisor

Key Financial Service Recommendations by the Royal Commission

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On February 4th 2019, the government released the 1000+ page Final Report for the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Advisers and the industry as a whole have faced scrutiny, with reforms in progress. One of the key recommendations from the Royal Commission was reporting the lack of independence by financial advisers.

Vince Lam can help provide key information and independent advice on paying super as a self-employed individual.

The President of the IFAAA, Daniel Brammall, has applauded these recommendations. “The IFAAA welcomes Commissioner Hayne’s recommendations. They echo the CIFAA’s certification of Independence: no commissions, no asset fees, no links to product manufacturers. Without this certification, as a consumer you run the risk of not getting true advice, but rather a sales pitch masquerading as advice.”

The CIFAA formally refers to the certification of independence in financial advice. All advisers/members must meet the following criteria:

  • No asset-based fees
  • No commissions or incentive payments from product manufacturers
  • No ownership links or affiliations with product manufacturers

Vince Lam (who is the Principle Consultant at Plutus Financial Guidance) is a professional Accountant and an CIFAA-certified Independent Financial Advisor with almost two decades of experience.

If you’re after independent superannuation advice, retirement planning financial advice, estate planning advice, aged care financial advice and/or are interested in learning about wealth protection, we have an independent wealth adviser waiting to hear from you.

Discover more about Plutus Financial Guidance’s education, experience and values here.

Superannuation Advice for self-employed people in sydney, a woman and two guys having a friendly meeting

Independent Superannuation Advice for the Self-employed

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We don’t often think far ahead into what our future looks like and therefore don’t take steps to secure it.  

Be prepared:

You have probably considered it, but now may be time to prioritise contributing to your super if you’re self-employed. It’s essential to be prepared financially for later life. Being prepared equates to less worry in the future and setting ourselves up for living as comfortably as possible.

Vince Lam can help provide key information and independent advice on paying super as a self-employed individual.

Advantages to paying your own superannuation contributions:

Seeking independent superannuation advice can assist in determining which super fund is best for your retirement goals. An independent superannuation advisor, or financial advisor, will undertake strategic analysis of the state of your superannuation to reveal opportunities to improve the state of your super balance.

  • Cash savings during retirement.
  • Claim a tax deduction for your super contributions.
  • Superannuation investments mostly get better investment returns than bank saving accounts.

How to contribute to your super:

If you already have a super fund, ensure you check that you can make contributions when you’re self-employed and take advantage of contribution limits.

Choosing a super fund:

When comparing super funds in order to decide which is most suitable for you, assess the funds’ features and fees you’ll pay. Next, look into factors such as risk, investment returns services and insurance.

Performance:

Begin by comparing funds investment performance over at least five years. Consider the impact of fees and tax.

Low fees:

Fees can either be charged as a dollar amount or a percentage – some funds even charge both. Fees are generally deducted on a monthly-basis and many type of fees can exist.

Insurance:

Super funds generally have three categories of insurance for members:

  • Life (also known as death cover)
  • Total and permanent disability (TPD)
  • Income protection

When making comparisons on what’s offered for default insurance, research into:

  • Premium rates
  • The amount of cover and exclusions or definitions that could affect you

If you’re a sole trader or in a partnership, begin by comparing super funds and seeking the relevant information that will inform which super it best for you.

If you require independent superannuation advice, please contact Vince Lam at Plutus Financial Guidance. Your unbiased specialist when it comes to long-term financial decisions.

Learn more about our independent superannuation advisory services here.

independent financial advisor in sydney

The Seven Roles of an Independent Financial Advisor

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Independent financial advice involves playing more than one role. The best independent financial advisors play multiple and nuanced roles with their clients, beginning with their needs, risk appetites and circumstances of the client, irrespective of what is going on in current markets.

Jim Parker, Vice President of DFA Australia believes good Financial Advisors actually play seven roles.

1. The Expert:

Now, more than ever, investors need independent financial advisors who can provide client-centred expertise in assessing the state of their finances and developing risk-aware strategies to help them meet their goals.

2. The Independent Voice:

The global financial turmoil of recent years demonstrated the value of an independent and objective voice in a world full of product pushers and salespeople.

3. The Listener:

The emotions triggered by financial uncertainty are real. A good independent financial advisor will listen to clients’ fears, tease out the issues driving those feelings and provide practical long-term answers.

4. The Teacher:                                       

Getting beyond the fear-and-flight phase often is just a matter of teaching investors about risk and return, diversification, the role of asset allocation and the virtue of discipline.

5. The Architect:

Once these lessons are understood, the independent financial advisor becomes an architect, building a long-term wealth management strategy that matches each person’s risk appetites and lifetime goals.

6. The Coach:

Even when the strategy is in place, doubts and fears inevitably will arise. The independent financial advisor at this point becomes a coach, reinforcing first principles and keeping the client on track.

7. The Guardian:

Beyond these experiences is a long-term role for the independent financial advisor as a kind of lighthouse keeper, scanning the horizon for issues that may affect the client and keeping them informed.

People’s needs and circumstances will change over time as will the nature of the advice. Vince Lam is an independent advisor, you can rest assured he will begin as The expert and become the The teacher and so forth, lastly The Guardian. Ultimately building a long-term relationship founded on values of trust and knowledge.

To discuss the many hats a good independent financial advisor must wear and how we can help you achieve your goals, contact Plutus Financial Guidance today on (02) 9188 8873 or via our enquiry form.

We work with many different clients, each with a diverse range of financial advisory needs. Click here to find out who we are for.

estate planning advice for retired people, peaceful retired couple

Estate Planning Advice for your Retirement

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Estate planning advice goes a lot further than simply creating a will or planning for your retirement. Estate planning is the careful planning that is required to assure financial security for your loved ones long into the future.

You have worked hard for your assets therefore estate planning is essential in ensuring a smooth transfer and that your wishes are fulfilled in a straightforward manner.

What is included in my estate planning?

Your estate is made up of what you own including but not limited to your home(s), investments, savings, cars and superannuation. In addition to everything you own. More or less any assets you wish to pass on should be included in your estate planning. Superannuation and insurance proceeds generally are not automatically part of your estate, these require extra planning.

First of all having an up to date will is imperative. You can always update your will if your circumstances change but outlaying your wishes clearly within the will and keeping it updated is the first important step of estate planning.

What happens next?

Careful consideration is required to decide how your estate is planned and how it can be passed onto your loved ones as per your wishes. As an independent financial advisor, Vince Lam can assist with your estate desires and together we can create a plan and how to best distribute your wealth, including tax considerations in an efficient way to the beneficiaries.

We can help you create a comprehensive estate plan that will consider all your wishes in the most efficient manner. We will help you have the peace of mind knowing your loved ones will have the security you have planned for.

Click here to learn more about estate planning advice at Plutus Financial Guidance.

aged care independent financial advice

Aged Care Independent Advice

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Making the decision to move yourself or a family member into aged care can be complex, time consuming and quite daunting. Working out which facility to choose, what information you need and the basic forms you need to fill out can be overwhelming and confusing.

Aged care services include facilities such as Respite Care, Specialised Dementia Care and Palliative Care. Often referred to as nursing homes, these facilities provide services such as meal preparation, accommodation, cleaning, round the clock care and a variety of other services. Making the decision to enter yourself or a family member into an aged care facility can be complex logistically as well as emotionally.

The sole focus of your decision should always be the health and welfare of yourself and your loved ones, however the truth of the matter is that financing aged care can be costly. Managing finances when it comes to aged care can be complicated and perplexing. There are many things to take into consideration, such as: how it will impact on the pension payments from Centrelink, how to pay for accommodations and whether or not it would be more beneficial to sell the family home, or to rent it out.

Why choose an independent financial advisor?

Seeking out aged care financial advice is a great first step in easing the transition into an aged care facility. An independent financial advisor will be able to help analyse all associated costs with the transition and help create a plan for how the costs can be financed. Without proper planning, aged care options may be significantly limited for some families.

Each individual and family has a unique set of circumstances, meaning there are no one size fits all plans or solutions when it comes to aged care financial advice. Finding a financial planner that understands this will help to provide clarity and guidance when it comes to choosing the best aged care option for you and your family.

At Plutus Financial Guidance, not only does Vince provide aged care financial advice to individuals and families, but he is also an Accredited Aged Care Professional. So you can be assured that your needs are being listened to and understood by an experienced professional.

Call Plutus Financial Guidance today to talk more about aged care financial advice and what will be best for you and your family. You can also learn more via our Aged Care Financial Advice service page.

independent financial advisor in sydney

Independent Financial Advice

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If you’re in the market for financial advice, choosing whom you get that advice from is one of the most important steps.

You might have heard the term ‘Independent Financial Advisor’ and thought, how does that differ from a regular Financial Advisor? Well for starters, the Australian Securities and Investments Commission (ASIC) has very strict criteria on who can claim to be an Independent Financial Advisor.

Independent financial advice should be free from bias, conflict and influence of all products.  

Here are some things to look for to ensure you are getting truly independent advice from your provider:

  • They are not employed by a bank. As banks own their products, there will be incentive for your financial advisor to recommend these to their clients.
  • The Financial Firm they are working for is not owned by a bank. You would be shocked to see how many Financial Planning Firms are giving advice under a Banks Licence.
  • They receive no commission or kick backs from product manufacturers.
  • No Asset-based fees. Asset fees are calculated in the same way as commission and prevent your advisor from being impartial.

The Royal Commission into the financial services industry recently exposed the unethical behaviours that are still conducted by some in the business. One of the recommendations made by the Royal Commission, was that financial planners that are in any way conflicted by remuneration should be required to disclose their lack of independence to clients.

Sadly, many people lump all financial planners into the same basket, assuming that everyone is working with eyes on their own pockets. However, there are independent advisors out there whose primary motivation is what is in the best interest of their client.

Why Plutus?

Plutus Financial Guidance are proudly certified CIFAA-certified Independent Advisors. This means we take no asset-based fees, commissions, kickbacks, nor do we receive any referral fees.

With no affiliation to outside parties, or products of our own, you can be assured that any recommendations we make will be tailored to your specific needs.

Plutus Financial Guidance is here to empower you to make better financial decisions and provides 100% independent financial advice. Call us or fill out our enquiry form today to find out more.

You can also read more about our range of advisory services here.

Independent Superannuation Advice

Independent Superannuation Advice

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Regardless of what stage you are at in your working career, it is likely that the thought of retirement has crossed your mind. Whether it is the Monday morning after a long weekend or a Friday afternoon counting the minutes until 5pm. The thought of never having to go to work again has definitely crossed your mind.

It is never too early to start thinking about your super fund

A healthy superannuation fund will ensure your retirement comes around swiftly and reflects the life you are imagining in your daydreams.

Although it is compulsory for employers to contribute to your superannuation fund, many industry experts and financial advisors believe that these contributions will fall short in covering basic retirement lifestyle goals for most Australians. Seeking independent superannuation advice is an effective way of managing your super fund and ensuring you are set up for the retirement you desire.

There are a variety of ways to boost your super, including additional super contributions, investment strategies or even something as simple as ensuring you have chosen the right super fund for you. There are a vast number of super funds on the market including self-managed super funds. Which is why it can be confusing to know where to even start when choosing which one right for you.

Why independent superannuation advice?

Seeking independent superannuation advice can assist in determining which super fund is best for your retirement goals. An independent superannuation advisor, or financial advisor, will undertake strategic analysis of the state of your superannuation to reveal opportunities to improve the state of your super balance.

A tailored strategy will factor in things like your age, current superannuation balance and retirement goals. We can help in determining what is the best strategy for you at this time, and how that might change or develop in the future, as your investments grow and you get closer and closer to retirement.

To discuss how independent superannuation advice can help you achieve your retirement goals, contact Plutus Financial Guidance today on (02) 9188 8873.

You may all be interested in reading more about retirement planning by visiting our services section, via this link.