As you may have gathered by now our firm is focussed on planning for a Client’s Financial Independence which some may call “Retirement Planning”.
Without any doubt, the greatest positive impact we can have on the financial wellbeing of our clients is in the “Transition to Retirement” stage of their working life. This is generally known as the period between the age of 55 and retirement (generally 65). It is clearly the period when our clients are seeking to become debt free, dependant free and financially independent. It is the period when they are likely to be accumulating their greatest wealth. It is also a period when the Government offers the greatest incentives to those seeking to be self funded in retirement.
A clear understanding of client circumstances, implementation of best strategies, strict management of risk and ongoing good advice should lead to predictable outcomes. When the client is ready to leave paid employment and tap into their retirement savings there should be a smooth transition to a long and happy life, without fear of uncertainty or the prospect of having to go back to paid employment.
The best chance of achieving Financial Independence is to give yourself enough time, start your planning process early and by relying on proven, verifiable, sceptically tested FACTS.
In our earlier blogs, we have tried to challenge myths, fables and fancy stories surrounding advice being spruiked by experts with dubious motives.
Data mining can prove any theory if you try hard enough. There are enough studies, statistics, surveys and scholars to verify pretty much anything, restricted only by the marketing budget.
So how do you get the real facts?
There are two sets of facts, which really matter when it comes to providing advice.
Client Facts
This part is in your hands and should be the foundation of any planning process.
Be thorough, be honest and be as accurate as you can possibly be in gathering this information.
Do not be influenced by anything other than your own reality and circumstances.
Your future objectives must be carefully considered and priced. Do not leave this up to your adviser.
Sure, they should be able to assist with the discussion but the decisions must be yours.
Recently, a potential client issued us with a challenge by saying that rather than giving us his real future income budget he would ask for a lot more than he thinks he may need just to test us.
This isn’t the way to go.
Give me the FACTS.
Financial Facts
Let’s try to keep this as simple as possible. How will you know if your advisor is giving you the real facts on financial statistics, data and products? Can you trust them?
There is a well researched and documented process in finding the appropriate advisor. Refer to the Money Smart web site,
https://www.moneysmart.gov.au/investing/financial-advice
as well as the CHOICE website
Once you have made sure that the advisor has the knowledge, qualifications and the experience to provide you with the technical and strategic advice then simply ask them THE question;
“How do you get paid for looking after me if I should become your client?”
If any one product or other party, besides your self, pays them in any shape or form for providing you with the service of financial advice and management, then you must question the independence and accuracy of their “FACTS” and who is paying for them?
Ask them to give you the FACTS and then be sure to compare them to at least one other source.
Quote from unknown source;
“It is easier to believe a lie that one has heard a thousand times than to believe a fact that no one has heard before”.
Regards, Rudi