Financial & Retirement Planning The Benefits of Financial Planning. Australian Financial Services Licence No

Transcription

1 The Benefits of Financial Planning Australian Financial Services Licence No

2 Agenda 1. What is Financial Planning? 2. Client Types 3. Full Financial Plan Process 4. Data Collection Process 5. Pre-Requisite Skill / Knowledge Required 6. Liabilities & Expenses 7. The Plan (8 Steps) 8. Questions?

3 What is Financial Planning? Financial planning is the process for identifying, planning for, and meeting clients lifestyle goals that are related to financial needs. It involves a strategy that may include: mortgage, superannuation, investment and tax planning, insurance (risk management) as well as retirement and estate planning. A well structured financial plan should help clients Build Wealth & Protect Assets What does this really mean to clients...

4 Clients need to think about... Their family's current financial goals Review their debt position annually Determine retirement income needs Verify insurance coverage is appropriate for now & in the future Monitor and rebalance portfolio periodically Update estate planning documents as life events occur or as tax laws change It s an ongoing, continuous process

5 Client Types Financial Planning requirements will differ depending on the clients situation: Accumulation (20-45 year old) Pre-retirement (46-55) Transition to Retirement (50-55) Retirement (55+)

6 Full Financial Plan Process Data collection 1-2 hours Plan preparation 5 hours Plan & Investment presentation 3 hours Plan follow-up 1 hour Implementation of portfolio 1 hour Account opening forms 0.5 hours Deed instruction 0.5 hours Investment placement 0.5 hours Check all forms are lodged/completed 0.5 hours 14 hours Estate planning / Wills preparation 4 hours 18 hours / client

7 Data Collection Process 1. The client discovery process Fact Find Helps establish strategies tailored to achieving the clients financial goals and objectives 2. Important we understand as much as possible about the client s personal & business circumstances (and any other issues that can impact on the financial decisions) The Benefits Better tax savings for the client, from an investment point of view The client obtains better investment advice Successfully meet the financial objectives of the clients

8 Data Collection Process The Process: Present Financial Services Guide (FSG) Assets & Liabilities/Annual Income - Expenditure Notes Scope of Advice Cash Position Prepare the Statement of Advice (SOA) Delivery of Advice Via the Statement of Advice (SOA)

9 Financial Structures for consideration 1. Personal Assets 2. Private Companies 3. Family Trusts 4. Partnership 5. Interest in Deceased Estate 6. Superannuation / Self-Managed Super

10 Liabilities & Expenses Liabilities Secured debts Unsecured debts Capital Expenses Vacation Renovations / repairs New car Family gifts / weddings Living Expenses After tax needs Budget review if needed

11 The Plan (8 steps) 1. Opening 2. Schedule of Asset / Liabilities & Income / Expenditure position 3. Scope of advice 4. Present scenarios then our recommendations 5. Advantages / disadvantages 6. Recommended investment portfolio / risks 7. Fees, costs & charges 8. What to do next

12 Summary Financial planning is not a one off event. It is a step by step plan that is reliant on the completion of the previous event before the next piece of advice can be implemented. Through Financial Planning, we have helped hundreds of clients to clarify, organise and significantly improve their financial situation.

13 Questions? Client Services T: E: Our Advisory Services: