Independent Wealth Management

Investing for Long-term Wealth with Independent Financial Advice

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.

Financial Advisor

Should I Access My Superannuation Early?

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) by following this link.

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

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

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 IFAAA’s Gold Standard of Independence: no commissions, no asset fees, no links to product manufacturers. Without this Gold Standard, as a consumer you run the risk of not getting true advice, but rather a sales pitch masquerading as advice.”

Independent Financial Advisers Association of Australia (IFAAA) formally refers to the gold standard 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 IFAAA Gold Standard Independent Financial Advisor with almost two decades of experience.

If you’re after independent superannuation adviceretirement planning financial adviceestate planning adviceaged 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.