Financial Plan: A Piece of Cake
Some feel that a financial plan is just a plain cake filled with lots of investments. Sydney financial planners know that your dessert is made up of heaps of cake slices, including Emotion & Behaviour Management, Budget, Estate Planning, Risk Management, Investments, and Tax Strategies. Control Have you ever heard the phrase, “Don’t focus on what you can’t control?” Since we have no impact on what the financial market will do and we don’t know anyone that can take note. Would such a seer work now if they could predict the future? There’s something Sydney financial planners can control now, however. We can answer the following questions, including "How
much money you want to have in retirement?"--"How much tax you’ll pay?"…"How much income you’ll earn?"…and "Where do your assets go in the event of your death?" Budget First, let’s talk about your budget. This is the foundation of your financial plan (the cake). If you haven’t made a budget, how do you know if you’ve got enough money? How will you know if your money is going to last until the end of your days? When we spent time together, Sydney financial planners will focus on your budget. We will get it correct before discussing your personal financial goals. After the budget is established, the rest of your financial plan flows from there. Risk Management So far, many clients of Sydney financial planners say they have all invested in conservative strategies. When the truth is told, perhaps they are conservatively invested. Some have proclaimed, “I don’t want to take risk!” That’s fine, but we need to discuss the concept of risk and how to achieve the best results. We refer to your risk acceptance level as the sleep tests. If you’re sleeping well every night, our job is properly done. If you toss and turn at night or need to check your portfolio every day, then we need to discuss the nature of risk relating to your financial goals. That’s because we direct your investments in a portfolio that’s 100 percent matched to your desired risk level. We discuss facts in our first meeting. We will ask you a series of just 12 questions. Your answers determine what level of risk you’re willing to take.
From that point, we work through your risk profile. We consider all of your preferences and, at the point we’re both satisfied, we invest your funds in accordance with your risk profile. Tax Strategies Would you like to pay ZERO tax? For most of your friends and colleagues, that’s a dream. It doesn’t have to be a dream—it can become your real life. That’s absolutely correct. You can be put in a position in which you won’t pay any tax at all. We must start at the beginning. You must first crawl before walking. Tax as part of your financial plan strategy can be controlled. Whilst it's against the law to avoid paying tax, we work to help you lower your tax payable. Estate Planning Many clients ask, “Where will my funds go when I pass away?” Most believe this question is answered in their will. However, this isn’t completely true. The topic of superannuation is not taken care of within your estate plan. That’s why super funds may be overlooked. Many superannuation funds provide for the nomination of a binding or non-binding death benefit. You direct the Trustee about a binding death benefit nomination. This sets out the legal personal representative and/or your dependents. You decide who will receive your benefit at the time you pass on. In comparison, the nomination of a non-binding death benefit is made by you in writing to the Trustee. You designate the beneficiaries to receive your benefit after you die. In this form, the Trustee ultimately decides who receives your death benefits.
If you nominate a dependent child or spouse, this decision may lead to the benefits funds being paid tax free. This isn’t the case if a nondependent is chosen. For this reason and others, estate planning is essential to get in place whilst you’re in control and healthy. Finally, Investments It’s clear by now. Lots of tasks must be completed before your investment strategy is considered. Underlying investments in a well-diversified portfolio create the engine that keeps your savings growing. How much energy you put into the engine is your decision to make. Our financial planners offer many investment options and mixes to match your risk profile. Your investments are tailored to you, no matter where you’re at in life. After you put the right ingredients into the mix, your financial life can be a piece of cake.
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