What can we do as financial advisers?

What we are paid to do.

Advise.

Crisis
People suffer crisis all the time.

(1) The provider must act in the best interests of the client in relation to the advice.

‘Safe harbour’ (2) The provider satisfies the duty in subsection (1), if the provider proves that the provider has done each of the following:

                    (a) identified the objectives, financial situation and needs of the client that were disclosed to the provider by the client through instructions;

                    (b) identified:


Book a free 15 minute call This email address is being protected from spambots. You need JavaScript enabled to view it. from our work with clients over the past 36 years.

E.g. 1. Egos matter in a trillion-dollar transition

Managing egos will be the key to managing the transition of trillions of dollars between generations over the next two decades.                                                                 (Australian 31/12/19)

E.g. 2. Seven heirs dispute Tip Top riches
Seven children are in a court battle over their parents’ multi-million-dollar fortune. (Australian 31/12/19)

E.g. 3. Costa family feeding frenzy
With the Costas gripped by sibling conflict, will the super-wealthy fruit and veg family chip in for their full entitlement. (Australian 30/10/19)

A month ago I received a call from a gentleman, aged 89,who had just lost his wife and in fact was sadly awaiting her ashes when we spoke.

His initial request was do I have better income than what he was earning in the bank?

Book a free 15 minute call and learn insights from our work with clients over the past 36 years.

Yes, I replied


 So it was

 1. an ‘almost’** on call accounts paying better than current bank rates and suitable for shorter term family goals.

Eg This cash-style investment has consistently delivered monthly returns in a low-yield environment, recently paying investors in *****  received a net rate of return equivalent to 4.09%p.a*for January 2020

e.g.  Investors with units in the *****received a net rate of return equivalent to 7.02% p.a*for January 2020.

and
there are other options as well.

It was always going to be very general advice as I don't know the full facts & figures to do so otherwise & properly.

Anyway in a call this week he is now receiving NO aged pension from Centrelink.



Why?

  Many reasons


It won’t be under the income test because bank interest rates are so low.

So from Centrelink


Part pensions

From 20 September 2019, part pensions cancel when your assets are more the limit for your situation.

Your situation          Homeowner             Non-homeowner

Single                       $574,500                  $785,000

Yep he is now single & needs some planning & he is still waiting for the Redeemable Accommodation Deposit RAD from the aged care as probate is in the high court taking its 6 weeks.

Then will he need care later & have to move into aged care??

All a huge challenge at 89.

Fortunately he has 4 boys & 12 grandchildren to help but what are their skill-sets?

And his personal story from during and later escaping WW2 to Australia  shows he has the strength.

 
Yes it is a jigsaw the Aged Pension & then the Aged care system where navigating through needs a guide and a Plan.


Book a free 15 minute call on email  or PM and learn insights from our work with clients over the past 36 years.

John McAuliffe

subject to all the disclaimers that everyone needs to be advised on.


As we have all noticed recently there have been plenty of subdivisions of lots in the neighbourhood.

In fact I have considered it myself but so far I have only attempted to use it in the form of a beehive, useful fruit trees or even a garden patch.

So I note from a recent IOOF technical article 20/12/2019

Subdivision of the family home

This week on the same day I had clients wanting or needing reassurance on who are their beneficiaries.

The first client sadly appears to have started the road to divorce when

‘Need her removed asap for any financial benefits from my death between now and the official divorce.’

 So that requires changing the beneficiaries on a will.

 Now under super that has rules on who can be beneficiaries & it is best & expected to read your super document PDS for whom qualifies to be a dependant.

Yes Better returns are very possible & compared to current term deposit rates

and recent meetings with clients suggest they want a very doable 5%.

Now RBA says wait and see
The RBA has held interest rates steady at its final meeting for 2019, but there are growing expectations of a cut early in the New Year.              (Australian 3/12/2019)

Yes there are MANY Approved options to help you thrive in 2020.

This was a question in a survey which attracted 3,397 responses to 42 questions about retirement savings, income and attitudes. 

This report was for a major financial services company and entitled ‘Financial discomfort in retirement report’. (YourLifeChoices, February 2019)

A response that resonated most with me was ‘Peace of mind is extremely important to older people. Having money at hand to be able to pay for your health needs is not only important, it is a must for a peaceful life”
(Retired female, aged 80 years)

The real Big reason for ‘wellness’ for my cohort is

I had just bought the wife's present & as most males will appreciate outside the store there was a charity offering present wrapping for a small donation.

What a good idea and so I joined the queue.

It so happened that ahead of me a gentleman & yes a grandfather was having a small toy piano wrapped for his grand-daughter.

Yes music appreciation is a lifetime asset.

But the toy itself will be temporary & maybe he would prefer to plan now for her education which will have huge future benefits for her.

Now as many have read recently, ‘Australian students’ results slip dramatically behind the rest of the world’. (Kidspot 4/12/19)

E.g. 1 Sydney rental yields at new low

 

Investors in Australia’s two largest residential property markets are getting the lowest rental yields in the country (Australian 3/1/2020)

 

it is a real fact or a real figure that even when a rental property is fully paid off the net return on average after 2% to 3% net expenses is a very average net 2%.

 

Yes you may achieve more net yield' in certain localities but generally that is due to much less anticipated 'growth'.

Thanks John that is excellent advice!   

Was a message I received yesterday.

My theme for you  is ‘what would I do if I was in your financial position’?

Or as defined under CORPORATIONS ACT 2001 - SECT 961B

Provider must act in the best interests of the client..

John Michael McAuliffe AFA, DipFp., BSc., DipTeach.

John is a Premier Wealth Coach & Financial Strategist. John McAuliffe Authorised Representative No.238629 of The Financial Link Group Pty Ltd

RISK and INVESTMENT ADVISORS AUSTRALIA PTY LTD.