Tag Archive for: Financial Advisor

Independent Financial Advisors Located in Sydney - Plutus Financial Guidance

Planning For Your Retirement

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When planning your pathway to retirement, getting sound retirement financial advice is key to making a smooth transition. Taking the time to plan now will help achieve financial security, giving you a sense of clarity and certainty. The Plutus Financial team have put together a list of the things to consider when planning for your retirement. 

When do you want to retire? 

Most successful people do not ever want to retire. They want to have the option to do so, on their terms, should they wish to exercise the option. The first thing to do when planning your retirement is to determine at what age you want to have the option to retire. Typically, the average Australian retirement age is 67. However, you can choose to retire whenever you want based on your lifestyle and financial position. Figuring out when to have the option to retire will depend on a range of factors, such as your savings, investments, superannuation balance and personal preferences.

Determine your retirement goals

Once you have decided when you want to have the option to retire, the next step is to determine your retirement goals and the income you will need to support this lifestyle. When you retire, you will have more time for the things you enjoy most. You should think about how much money you will need for your basic living expenses and hobbies, the lifestyle you want to maintain and the emergency fund needed for life’s unexpected events.

Understand your financial position

Assessing your financial resources is the next step when planning your retirement. Your superannuation nest egg will typically be a component of your  retirement income. You can start accessing your super once you reach your preservation age, which will be between 55 and 60, depending on when you were born. 

Aspire to be more, contribute more and the best version of yourself possible. Nonetheless, Australia has a safety net in place with a range of government support benefits. Payments such as the age pension, Carer’s Allowance and Disability Support Pension can supplement your savings and super in retirement.

Develop a retirement financial plan 

As soon as you understand your retirement goals and current financial position, you can begin to put a plan in place to achieve your desired retirement aspirations. Vince Lam is a an independent financial planner, here to help you achieve your life goals, including understand the options at your disposal, the implications of relocating or downsizing the family home, topping up your super or developing a low-risk investment portfolio.

Conclusion 

We are here to help you achieve your most important life goals. Independent retirement financial advice can help you make informed choices when it comes to planning your retirement roadmap. Get in touch with the Plutus Financial team to be empowered, help you achieve your goals , get peace of mind and free up your time by outsourcing your retirement planning to us.

Plutus Financial Guidance Sydney - Independent Wealth Management Advice Services Sydney

Investing for Long-term Wealth with Independent Financial Advice

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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.

Plutus Financial Guidance - Independent Financial Advice & Wealth Management

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 Services Sydney - Plutus Financial Guidance 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.

Plutus Financial Guidance Sydney Estate - Planning & Wealth Advice Services Sydney

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.

Independent Superannuation Advice Services Sydney - Plutus Financial Guidance Sydney

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.