Tag Archives: Risk

Top 5 Financial Tips

So it wasn’t that long ago that 2017 kicked in and you promised to get on top of your finances this year!  How’s that going for you now that we’re around six weeks in to the new calendar year?

You know what they say about “the best laid plans of mice and men” right?

If you want to break it down into a really easy to follow guide, I’ve got five top tips for you to help get on top of things over the rest of the year…

1. Set goals

Take charge of your financials this year by working out your goals, objectives and priorities and put a plan in place to reach them.  If you want to get rid of credit card debt, increase savings, pay off your mortgage more quickly or boost your superannuation savings, the MoneySmart site has tools to help you work out a plan.  Alternately, hooking up with a financial planner can help you work with a professional money coach to assist you to make it happen, articulate what you’d like to achieve, and give you someone to be accountable to.

2. Map with a budget

As any successful journey begins with a reliable map or an up to date GPS, the path to wealth starts with going back to basics and having an accurate budget.  The thought of doing a budget might make your eyes glaze over, but a budget helps you see where your money is being spent and where you can make changes that will help you build wealth. You can use MoneySmart’s simple money manager to create your budget.  I often recommend clients use it for their budgeting needs.  It’s online, simple to use and comes in a few different languages too.

3. Get a better deal

It’s good to regularly check and make sure you aren’t paying too much for your mortgage, investment or personal loans or insurance policies. Shopping around regularly for the best deals could save you thousands of dollars over the long term. Talk to your lender or mortgage broker about what they can offer.  Different banks have different deals, so they’ll search around for a better deal if they want to keep you as a customer. If they won’t help, feel free to shop around yourself and switch to another option or lender.

Before automatically renewing insurances, check whether your current insurer is giving you the best value for money. You might be able to get a better policy for a lower price or with better conditions.  Often it’s worth asking a broker or agent for help as they have access to different policies and can run comparisons for you based on what’s important to you.

4. Improve your knowledge

It’s long been acknowledged that “knowledge is power.”  Before you commit to any investment opportunity, make sure you understand the features, costs – upfront and ongoing, benefits to you, and all possible risks.  Does the investment fit in with your plan? Don’t invest in something you don’t understand, and “if it sounds too good to be true, it probably is.”

Forewarned if forearmed, so equip yourself with as much knowledge as possible. Subscribe to investment magazines, download popular books on the subject, follow experts on social media or if you still feel clueless, engage a financial adviser to assist.

5. Manage Risk

Investing wisely helps build your wealth for the future.  You’ve probably heard of the benefits of compounding interest, so the longer time frame you have, the better off you should be.  All investments involve an element of risk – and often, “higher the risk, the higher the potential return.” Before you invest any money, take the time to understand the risk versus return.  You need to work out your own personal style of investing.  Are you conservative?  balanced?  or an aggressive investor?  Often, we’ll have a different profile for different types of investment.  If you’re younger, you’re likely to have a much more aggressive approach with your superannuation than you would with funds being saved for a housing deposit.

You’ve probably heard “don’t put all your eggs in one basket.”  This is what diversification is all about. By spreading money across different asset classes and industry sectors, you are less likely to be affected by a particular economic event, like a drop in real estate prices, a fall in the share market or in a particular industry or sector.

So work your way through these five tips.  I’d love to hear how they’ve helped you get on top of your finances!!

Bali Retreat for Wealth Planning Partners

 

Well, the inaugural Wealth Planning Partners (WPP) retreat has been held, done and dusted in Canggu, Bali, Indonesia.

Bali has never been high on my list of Must See places, but I can certainly see why the Aussies have been heading there for decades! The Balinese are friendly (tho more than happy to take the tourist dollars) the beer is cold, and the weather is always warm and humid which most of us are used to.  Basing our stay in Echo Beach between the rice fields and beaches was really special and a lot was accomplished.

We kicked off our first day with a Mexican dinner which served the three of us, with drinks for under $50.  Expensive by local standards!  The following morning was a massage each and session on Social Media and why it’s so important to an adviser’s business going forward.  After lunch, one of our guest speakers, Ian, a lawyer from Brisbane dropped by and we learned about Trusts and structures used for the protection of wealth and to note when we need to recognise that our clients need to sit down and discuss further with a lawyer.

But it wasn’t all work and for Saturday we met up with some friends in Kuta, and headed to Tannah Lot in the afternoon for a sunset tour.  It’s really been commercialised, but certainly some great photo ops!  Then we hit Ubud on Sunday for the Paon Bali Cooking School.  By evening we’d had a spa treatment at Ayana Spa (formerly the Ritz Carlton) and finished off at the Rock Bar for drinks.   If you ever get a chance to go to Bali, all of these are a Must Do!

Monday, it was back to the grind and we were joined by another guest who filled us in on the Big 4 banks, where they sit in the Aussie economy and how we all fit into the grand scheme of things.  A great ‘who’s who in the zoo’ for the rookies.  Ian followed up with a second session, this time on the benefits of Key Man cover and Debt Reduction planning in Business Risk.  We found a great hotel for lunch at the suggestion of a local and loved the artifacts on display at the Hotel Tugu, apparently the life’s work and collection of a wealthy Javanese businessman, now on display for all to enjoy.

Tuesday, we all worked on our ‘WHY’ – why do we want to be planners? what can we give back to the customer? what’s so special about us? and why would you want to use WPP and it’s advisers?  Always a spot of soul searching goes on there, but great to revisit for me, and good for the guys to explore.

If the whole trip was to have us work more cohesively as a team and understand our individual roles, then the trip was a resounding success.

Learning what we can do when we play as a team has been good for us all.  I just know it’s going to be a great year for WPP!