risk

How to pick a good one? (5 questions to ask your Financial Adviser)

How to pick a good one? (5 questions to ask your Financial Adviser)

There is no doubt about it, Financial Advice is taking a hammering at the Royal Commission into Banking and Financial Services.  With advisers charging fees for no service, making recommendations with the purpose of meeting sales targets and even charging to accounts of customers who have died it is clear that there is some work to be done to restore the reputation of financial planners in general. As a relative newcomer to financial services and

What you need to know about commission on life insurance

What you need to know about commission on life insurance

One of the biggest challenges facing financial planning as a profession is the need to shrug off its commission based origins. Early pioneers of financial advice were essentially door to door salesmen. Working for the big life companies and pounding the pavement, their wages were based on the number of policies sold. In some sections of the advice community, this style of remuneration is still very entrenched.  Even though a Statement of Advice document has

Property investing and the value of professional advice

Property investing and the value of professional advice

I usually try to keep my ranting on my blog to a minimum, but I have been so saddened by the story of the 71 year old lady from WA who is faced with losing her home to a high risk investment strategy that was probably never appropriate for her (ABC report here). Over a number of years, on a nurse’s wage,  she has amassed 11 investment properties (in addition to her home), owes over

The Basics about Gearing

The Basics about Gearing

With recent announcements from the major banks that they are raising interest rates on investment property mortgages, I think it is timely to talk about geared investments. In simple terms, a geared investment is one where some or all of the funds being invested are borrowed.  The investor pays the interest on the loan with the intent that the investment return will be greater than the interest paid on the borrowings.  The equation may also

How to invest when you can’t predict the future

How to invest when you can’t predict the future

If only it was possible to predict the future.  Whether it be the lottery, the stock market or even which career to choose, we could always be certain of picking the winner.  Unfortunately life isn’t like that and we can only make decisions based on the information that is available at the time. Some investment advisers may try to give the impression that they have expert or inside knowledge of what is going to happen;

Make the most of your super timeframe

Make the most of your super timeframe

It is often said that compound interest is the 8th wonder of the world.  What could be better than earning interest on the interest on your interest?  And the longer time you have, the more it works.  Put your money in and leave it to grow all by itself. The superannuation system takes advantage of this; regular saving throughout a person’s working life plus the regular addition of investment returns is designed to help us

5 Things you should know about your Annual Super Statement

5 Things you should know about your Annual Super Statement

    It is that time of year again! Superannuation fund providers are preparing and sending out their annual statements. When yours arrives, here are a few things to check before filing it away.     1. Did you get more than one statement? If you have multiple superannuation accounts, it really is worth considering consolidating them. This will usually enable you to save on administration fees as well as making it easier to keep

Do I need a Financial Plan?

Do I need a Financial Plan?

In my previous life as a project manager I learned the value of always having a plan.  I also learned that even when you have a plan, unexpected events can happen and new knowledge and insights gained as you go can cause you to make adjustments. Often when I have reflected at the end, the path we have taken is quite different from the one I had envisaged. “So if you aren’t going to stick

Beware Investment Property Sales Pretending to be Financial Advice

Beware Investment Property Sales Pretending to be Financial Advice

  A couple of weeks ago I received a phone call  from a call centre in the Philippines suggesting that I might qualify for tax savings from the ATO for this financial year.  All I needed to do was to answer a few simple questions about my household income, home ownership status and level of borrowings.  Having a few minutes to spare (and being a bit curious), I did as asked and “Congratulations!”, I found