Looking for a Financial Planner Brisbane?
Choosing a financial planner is not like choosing a plumber. You are handing someone visibility over your income, your superannuation, your debts and your plans for the next thirty years — and the difference between good and poor advice compounds quietly for decades. It is worth taking the time to choose deliberately.
This guide covers what to check, what advice costs in Australia, and the questions worth asking before you commit to anyone. It is general information, not advice about your circumstances.
What a financial planner actually does
A financial planner helps you decide what to do with your money over time, and then implements those decisions. In practice that usually means some combination of superannuation and contribution strategy, retirement planning and Centrelink entitlements, personal insurance, investment and portfolio construction, cashflow and debt reduction, tax structuring, and estate planning.
What separates advice from information is that a licensed adviser must consider your specific objectives, financial situation and needs, and document their reasoning in a Statement of Advice. That obligation is what you are actually paying for.
First, check they are licensed
Every person legally allowed to give personal financial advice in Australia appears on ASIC’s Financial Advisers Register. It is free, public, and takes a minute to search.
The register shows you their qualifications, how long they have been advising, which licensee they operate under, what they are authorised to advise on, and — importantly — any bans or disciplinary action. If someone is not on it, they cannot lawfully give you personal advice. Check before the first meeting, not after.
Understand how they are paid
This is the question that most changes the advice you receive, and the one people are most reluctant to ask. There is nothing awkward about it: every adviser is required to disclose it in writing anyway.
Broadly, there are three models. Fee-for-service means you pay an agreed fee for the advice itself, regardless of what is recommended. Commission means the adviser is paid by a product provider — still permitted for life insurance, and disclosed to you. Asset-based fees charge a percentage of the money under management.
None of these is automatically wrong. What matters is that you know which applies, what it costs in dollars, and whether it creates any incentive to recommend one product over another. At Queensland Financial Group our strategic and investment advice is fee-for-service; insurance advice may involve commission, and either way the figures are disclosed before you decide anything.
What financial advice costs in Australia
Most advisers charge a fixed fee to prepare a Statement of Advice, then an optional ongoing fee if you want continuing service and annual reviews. The cost depends on complexity — a single question about contribution caps is not the same piece of work as restructuring a family’s affairs before a business sale.
Two things are worth knowing. The fee must be disclosed in writing before you commit, so you should never be surprised. And an initial meeting is generally free, which means you can meet two or three advisers and compare before spending anything.
Ask what their advice can actually cover
Not all advisers can recommend the same things. Some operate on an approved product list limited to a narrow range, and some — particularly advice offered through a superannuation fund — can only address that fund’s own products.
That is not necessarily a problem if your situation is simple. It becomes one when your position spans several places: insurance held outside super, a partner’s superannuation, an investment property, or a business. Ask directly what falls outside the scope of what they can advise on.
Questions worth asking in a first meeting
- What are your qualifications, and how long have you been advising?
- Who is your licensee, and what are you authorised to advise on?
- How are you paid, and what will this cost me in dollars?
- What is outside the scope of advice you can give me?
- Who will I actually deal with day to day?
- What happens if I want to stop the ongoing service?
- Can you show me what a Statement of Advice looks like?
A good adviser will answer all seven without hesitation. Reluctance on any of them is itself an answer.
Red flags
Be wary of pressure to decide quickly, or of advice given before anyone has asked properly about your circumstances. Be cautious of guaranteed returns — no legitimate adviser can promise investment performance. Treat vagueness about fees as a warning, and be sceptical of any recommendation that funnels everything into products associated with the adviser or their licensee.
One more: an adviser who never says “you probably don’t need this” is not being careful with you.
Do you actually need a financial planner?
Not everyone does. If your finances are straightforward, your super is in a reasonable fund, and you are comfortable with what you are doing, you may not need advice yet.
Advice tends to earn its keep when there is complexity or a decision that is hard to undo — approaching retirement, selling a business, receiving an inheritance, restructuring debt, blending finances after a relationship change, or working out whether your insurance would actually pay out when it mattered. Those are the moments where getting it wrong is expensive and getting it right compounds.
Financial planning in Brisbane
Queensland Financial Group has advised Brisbane families and business owners since 1989, from our office at Suite 2, Level 22, 345 Queen Street in the CBD. We work with people approaching retirement, business owners planning succession, and families sorting out insurance and estate planning — and we frequently work alongside a client’s existing accountant rather than replacing them.
If you would like to talk it through, the first meeting costs nothing and carries no obligation. You are welcome to bring the seven questions above and ask us every one of them.
Mortgage vs super
With interest rates on the rise and investment returns increasingly volatile, Australians with cash to spare may be wondering how to make the most of it. If you have a mortgage, should you make extra repayments or would you be better off in the long run boosting your super?
The answer is, it depends. Your personal circumstances, interest rates, tax and the investment outlook all need to be taken into consideration.
What to consider
Some of the things you need to weigh up before committing your hard-earned cash include:
Your age and years to retirement
The closer you are to retirement and the smaller your mortgage, the more sense it makes to prioritise super. Younger people with a big mortgage, dependent children, and decades until they can access their super have more incentive to pay down housing debt, perhaps building up investments outside super they can access if necessary.
Your mortgage interest rate
This will depend on whether you have a fixed or variable rate, but both are on the rise. As a guide, the average variable mortgage interest rate is currently around 4.5 per cent so any money directed to your mortgage earns an effective return of 4.5 per cent. i
When interest rates were at historic lows, you could earn better returns from super and other investments; but with interest rates rising, the pendulum is swinging back towards repaying the mortgage. The earlier in the term of your loan you make extra repayments, the bigger the savings over the life of the loan. The question then is the amount you can save on your mortgage compared to your potential earnings if you invest in super.
Super fund returns
In the 10 years to 30 June 2022, super funds returned 8.1 per cent a year on average but fell 3.3 per cent in the final 12 months.ii In the short-term, financial markets can be volatile but the longer your investment horizon the more time there is to ride out market fluctuations. As your money is locked away until you retire, the combination of time, compound interest and concessional tax rates make super an attractive investment for retirement savings.
Tax
Super is a concessionally taxed retirement savings vehicle, with tax on investment earnings of 15 per cent compared with tax at your marginal rate on investments outside super.
Contributions are taxed at 15 per cent going in, but this is likely to be less than your marginal tax rate if you salary sacrifice into super from your pre-tax income. You may even be able to claim a tax deduction for personal contributions you make up to your annual cap. Once you turn 60 and retire, income from super is generally tax free. By comparison, mortgage interest payments are not tax-deductible.
Personal sense of security
For many people there is an enormous sense of relief and security that comes with having a home fully paid for and being debt-free heading into retirement. As mortgage interest payments are not tax deductible for the family home (as opposed to investment properties), younger borrowers are often encouraged to pay off their mortgage as quickly as possible. But for those close to retirement, it may make sense to put extra savings into super and use their super to repay any outstanding mortgage debt after they retire.
These days, more people are entering retirement with mortgage debt. So whatever your age, your decision will also depend on the size of your outstanding home loan and your super balance. If your mortgage is a major burden, or you have other outstanding debts, then debt repayment is likely a priority.
Older couple nearing retirement
Tony and Elena, both 60, would like to retire in the next few years. Together they earn $180,000 a year, excluding super, but they still have $100,000 remaining on their mortgage. Tony has a super balance of $600,000 and Elena has $200,000.
They want to be debt free by the time they retire but they are also worried they won’t have enough super to afford the lifestyle they look forward to in retirement.
If they do nothing, at a mortgage interest rate of 4.5 per cent it will take five years to repay their mortgage with monthly mortgage payments of $1,864. At age 65, their combined super balance will be a projected $1,019,395.
Jolted into action, they decide they can afford to put an extra $1,000 a month into their mortgage or super.
- If they increase their mortgage payments by $1,000 a month, the loan will be repaid in three years and two months. But their super will only be a projected $931,665 by then, so they may need to work a little longer to fund a comfortable retirement. From age 63, they might consider salary sacrificing into super with money freed up from early repayment of their mortgage.
- If they salary sacrifice $1,000 a month to super from age 60, their combined super balance will grow to a projected $1,082,225 by the time they are 65 and their home is fully paid for.
These are complex decisions, but whichever option they choose they will probably need to consider working until at least age 65 to be debt free and build their super.
All calculations based on the MoneySmart mortgage and retirement planner calculators.
All things considered
As you can see, working out how to get the most out of your savings is rarely simple and the calculations will be different for everyone. The best course of action will ultimately depend on your personal and financial goals.
Buying a home and saving for retirement are both long-term financial commitments that require regular review. If you would like to discuss your overall investment strategy, give us a call.
i https://www.finder.com.au/the-average-home-loan-interest-rate
ii https://www.chantwest.com.au/resources/super-members-spared-the-worst-in-a-rough-year-for-markets/
Buachailli Pty Ltd ABN 57 115 345 689 atf Harlow Family Trust t/as Queensland Financial Group is a Corporate Authorised Representative of Synchron AFS Licence No. 243313 This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.
The trouble with intuition when investing
Knowing how your mind works can help you avoid the more obvious traps many investors fall into.
Cognitive bias has become a bit of an investing buzz phrase in recent years.
The theory is that the human brain predictably makes errors of judgment that can lead us to be emotional, short term and come to other incorrect conclusions.
Cognitive bias has been of particular interest to the investing community and long lists of biases – confirmation bias, anchoring, the recency effect and dozens of others – are now the stock-in-trade of beginner investors worldwide.
The Nobel-prize winning economist Daniel Kahneman first researched bias in human thinking, distinguishing two ways in which we think: an automatic, instinctive and almost involuntary style contrasted with effortful, considered and logical thought.
That original research has grown into an industry.
Researchers and psychologists have identified endless ways in which the human brain is prone to bias, errors and poor judgment – and the investing community has latched on.
But underlying it all is that original finding that we spontaneously seek an intuitive solution to our problems rather than taking a logical, methodical approach.
Kahneman wrote that when we are confronted with a problem – such as choosing the right chess move or selecting an investment – our desire for a quick, intuitive answer takes over.
Where we have the relevant expertise, this intuition can often be right. A chess master’s intuition when faced with a complicated game position is likely to be pretty good.
But when questions are complex and rely on incomplete information, like investing, our intuition fails us.
The very fact we find the concept of cognitive bias so appealing is simply another example of our innate desire for simple, intuitive answers.
Unfortunately, the world is complicated, and almost everything that happens in investment markets emerges from the combination of a web of unrelated, intricate and multi-faceted events.
Our bias towards simplicity is reinforced by the nightly news and the morning newspapers that persist in providing simple explanations for complex events. Each day, market movements are distilled into ‘this-caused-that’ explanations that obscure the true drivers of change.
It is our intuition that is reacting when we find ourselves excited that markets rose 100 points – and a little nervous when markets ‘wipe off’ billions. We experience these emotional reactions even though the effect on our overall wealth from either event is likely to be tiny.
Our understanding of history is similarly simple, reducing wars, recessions and pandemics into simple cause and effect stories that are easy to remember and teach.
These stories help us understand the past. But they do not help us predict the future.
This explains why investment opportunities that seemed certain at the time we made them so often go awry.
It is not bad luck or circumstances changing against us – it’s the fundamentally simplistic cause and effect model in our minds that doesn’t allow us to understand all the possible outcomes.
So how can we best use the science of cognitive bias to become better at investing?
It is certainly worth learning about the wide and growing range of cognitive biases scientists are identifying that can stand in your way of being more successful.
Knowing how your mind works can help you avoid the more obvious traps many investors fall into.
We can use the basic principles of successful investing to avoid becoming victim to our own cognitive biases. Stick to a plan and don’t react to market noise or your emotions. Stay diversified to reduce the risk of permanent loss. And ensure you do not spend too much money on unnecessary fees.
But it is also a trap to rely too heavily on the science of cognitive bias, thinking that it can provide you with the keys to investing success.
The serious research being done by psychologists has been co-opted to offer you yet another tempting short cut – and in successful investing, there is no such thing.
Source: Vanguard
Reproduced with permission of Vanguard Investments Australia Ltd
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.
© 2022 Vanguard Investments Australia Ltd. All rights reserved.
Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
Buachailli Pty Ltd ABN 57 115 345 689 atf Harlow Family Trust t/as Queensland Financial Group is a Corporate Authorised Representative of Synchron AFS Licence No. 243313 This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.
Six ways to pay off your mortgage faster
Paying off your mortgage early will save you money and take a financial load off your shoulders. Here are some ways to get rid of your mortgage debt faster.
Switch to fortnightly payments
If you’re currently paying monthly, consider switching to fortnightly repayments. By paying half the monthly amount every two weeks you’ll make the equivalent of an extra month’s repayment each year (as each year has 26 fortnights).
Make extra payments
Extra repayments on your mortgage can cut your loan by years. Putting your tax refund or bonus into your mortgage could save you thousands in interest.
On a typical 25-year principal and interest mortgage, most of your payments during the first five to eight years go towards paying off interest. So anything extra you put in during that time will reduce the amount of interest you pay and shorten the life of your loan.
Ask your lender if there’s a fee for making extra repayments.
Smart tip: Making extra repayments now will also give you a buffer if interest rates rise in the future.
Find a lower interest rate
Work out what features of your current loan you want to keep, and compare the interest rates on similar loans. If you find a better rate elsewhere, ask your current lender to match it or offer you a cheaper alternative.
Comparison websites can be useful, but they are businesses and may make money through promoted links. They may not cover all your options. See what to keep in mind when using comparison websites.
Switching loans
If you decide to switch to another lender, make sure the benefits outweigh any fees you’ll pay for closing your current loan and applying for another.
Switching home loans has tips on what to consider.
Make higher repayments
Another way to get ahead on your mortgage is to make repayments as if you had a loan with a higher rate of interest. The extra money will help to pay off your mortgage sooner.
If you switch to a loan with a lower interest rate, keep making the same repayments you had at the higher rate.
If interest rates drop, keep repaying your mortgage at the higher rate.
See what you’ll save by making higher loan repayments.
Consider an offset account
An offset account is a savings or transaction account linked to your mortgage. Your offset account balance reduces the amount you owe on your mortgage. This reduces the amount of interest you pay and helps you pay off your mortgage faster.
For example, for a $500,000 mortgage, $20,000 in an offset account means you’re only charged interest on $480,000.
If your offset balance is always low (for example under $10,000), it may not be worth paying for this feature.
Avoid an interest-only loan
Paying both the principal and the interest is the best way to get your mortgage paid off faster.
Most home loans are principal and interest loans. This means repayments reduce the principal (amount borrowed) and cover the interest for the period.
With an interest-only loan, you only pay the interest on the amount you’ve borrowed. These loans are usually for a set period (for example, five years).
Your principal does not reduce during the interest-only period. This means your debt isn’t going down and you’ll pay more interest.
Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/home-loans/pay-off-your-mortgage-faster
Important note: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
Important
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
Buachailli Pty Ltd ABN 57 115 345 689 atf Harlow Family Trust t/as Queensland Financial Group is a Corporate Authorised Representative of Synchron AFS Licence No. 243313 This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.
Three top strategies for setting goals you can actually achieve
Setting goals for yourself and your business is sometimes easier said than done. Productivity coach, Chelsea Pottenger, shares some handy tips to set effective goals – and achieve them!
A new financial year is a great time to pause, review and evaluate your goals. Asking yourself and your team if you are on the right track? If your daily activities match your goals? Whether you even set up the right goals to start with?
A mistake we can all fall into is setting up big goals, only to discover we aren’t following through to achieve them. You can stop that happening by using a framework that will not only help you set up your goals but achieve them as well.
So, what is a goal?
A goal is simply a future desired outcome. Your goal could be to ‘increase yearly revenue by 25 per cent’ or ‘to create a more connected culture’.
Whatever your goal is, it’s important to consider how you want to feel, the specific action of the goal and how you are going to achieve it.
Clearly articulated goals help trigger new behaviours, which prompt new habits, allowing you to work more efficiently and effectively towards achieving your goals.
Three steps to successful goal setting
Step 1: Start with your values
Your values are your ‘why’. They are the things you believe are important. They determine your priorities and help measure whether you are fulfilled. Your values will help guide why you are making the goals you are, and ensure they are aligned with the purpose of the business.
Write down three values and then process why they are important.
Step 2: Determine how you want to feel
This part may not seem that important, however cognitive therapy tells us that when we can harness the emotion we would feel by achieving our goals, we will better understand our ‘why’ and intrinsic motivation, prompting us to put more energy into achieving them.
Ask yourself:
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Do you want to feel successful?
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Do you want to feel abundant?
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Do you want to feel energetic?
Before writing down your goals, clearly identify how you want to feel and return to this feeling when finding your intrinsic motivation.
Step 3: Set S.M.A.R.T Goals
S.M.A.R.T goal setting is a widely proven formula for success. The acronym ‘S.M.A.R.T’ stands for Specific, Measurable, Attainable, Relevant and Timebound.
Writing goals in this format prompts you to be crystal clear about what the desired outcome is and how you are going to achieve it. For example, if your goal is to support employee wellbeing, we would break down the goal like this:
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Specific: Introduce a twice a week wellbeing program for my employees.
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Measurable: I will survey my employees on what types of fitness and mindfulness they would like to be included in the wellness program.
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Attainable: I will outsource a fitness trainer and meditation/mindfulness coach. I will spend two hours per week working with them to curate sessions for the program.
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Relevant: Supporting my employees’ wellbeing will increase their happiness, productivity and performance at work.
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Timebound: I will start working on the program tomorrow and have it up and running in six weeks time.
Now you have set your goals, you need to achieve them.
3 strategies to help you stick to your goals
1. Treats and rewards for the brain
Reward yourself along the way. Celebrate each milestone that gets you closer to your goal.
2. Pre commitment and accountability
Consider getting an accountability partner. This could be a spouse, friend, colleague – someone to celebrate the wins along the way and offer a fresh perspective.
3. Intrinsic motivation
Check on your ‘why’ and what motivates you. When our behaviours match our values, it means our goals are aligned with our purpose and we feel a stronger drive to achieve them.
Source: Flying Solo August 2022
This article by CHELSEA POTTENGER is reproduced with the permission of Flying Solo – Australia’s micro business community. Find out more and join over 100K others https://www.flyingsolo.com.au/join.
Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) ac www.flyingsolo.com.au
Buachailli Pty Ltd ABN 57 115 345 689 atf Harlow Family Trust t/as Queensland Financial Group is a Corporate Authorised Representative of Synchron AFS Licence No. 243313 This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.