Skip to main content

Are you making a profit? What’s the process?

I’ve posted recently about the positive start investment markets have made for the year. This in turn has had a positive impact on my client’s super funds with balances enjoying healthy gains. As I’ve said before, we shouldn’t get too excited about short term gains. Superannuation is very much a long term investment. However, what the last few months does demonstrate is the need to have your superannuation invested appropriate to your time horizon and risk profile. Understanding the numbers is important. For instance, if you are just starting out in your career and have a relatively modest super balance of $20,000, even a solid annual return of 10% will only yield in increase of $2,000 in your balance. By contrast, if you have a higher balance of say $100,000 then the same percentage return yields a $10,000 increase. Obviously this isn’t a complicated concept. However it highlights the need to manage your super correctly from the very start. Get your super performing early so that the balance increases and percentage gains translate into strong dollar gains for you. Ok. So you’ve decided you want to do something about it. What’s the process? At Hindsight we understand that our clients quite often don’t have a lot of time to focus on superannuation and insurance. We also recognise how important it is to make sure you understand how it all works. We start with an initial meeting in our office over a coffee. It’s a chance to meet one another, show you around and introduce you to the team. We complete a confidential Client Profile which provides us with the necessary information to start doing some work for you. Included in this are your personal particulars, assets/liabilities, income/expenses, current superannuation and insurance arrangements. Most importantly, it includes your goals and objectives and investor profile. This process normally takes little more than an hour. From here the work starts for us. We start compiling your Statement of Advice which is a comprehensive document that outlines your current position, your recommended position and the reasoning behind those recommendations. This document usually takes us about a week to produce after which we invite you in so that the recommendations can be explained to you. From there it’s entirely up to you. The document is yours to keep regardless of whether or not you decide to implement our recommendations. If you do decide to become one of our valued clients, we will implement the recommendations for you and then it’s a case of maintaining regular contact, monitoring your portfolio and making adjustments along the way as your lifestyle changes, employment changes, pay rises occur, marriage maybe, buying a home or starting a family. All these things will impact your financial position and we’ll guide you through any changes that need to be made. The whole process is quite simple and painless. Be curious. Be informed. Get your complimentary Statement of Advice completed. View our Privacy Policy.

Comments

Popular posts from this blog

What will 19 hold for you?

Most of us are starting to think about getting back into work mode – or perhaps you are back at work already.
Don’t worry, this is not going to be one of those “let’s look back over the last 12 months” chats where we remember which celebrities are no longer or who won major sporting events.
What should you expect from the next 12 months? Well, nobody knows.  However, there is one certainty.  Markets will go up and markets will go down.  
Consider this.  The Australian equities market is still approximately 18% below where it was 11 years ago so there’s plenty of upside just to get back to where it was.  In terms of your superannuation, you need to consider your time horizon, i.e. how long will it be invested for before you can access it.
For a 35-year-old, they face another 30 years before they can access their super at age 65. Not only that, once they do retire at 65, they’re not going to take their super and spend it in one go.   They’re going to use it to produce an income in retiremen…

When Socks and Jocks don’t cut it anymore.

We have a solution to avoid the old favourites: socks and jocks this Father’s Day.  As this weekend is Father’s Day, the focus should be on Dad.  You can purchase the actual book or the digital copy so Dad can access year - round savings from his smart phone.  Part proceeds from your purchase, also helps a local Brisbane charity: Be Uplifted Inc Breast Cancer Charity – so everyone wins! Click here to purchase Dad his Entertainment Book subscription. Another gift you could give Dad is encouragement. To encourage Dad to have a conversation with a financial adviser about his super and insurances. Why? Maybe Dad has started a new job or had a promotion. Maybe Dad is nearing retirement? When our lifestyle changes or work situation changes, it affects your super + insurances. Reviewing these regularly will make sure Dad stays on track. Perhaps you know Dad has a few super funds hanging out there from previous jobs. This can affect a few things – especially Dad’s back pocket and can include inap…
Before you get excited (or not), I don't offer Pet Insurance, however I have received many questions about it.  So I thought I would offer some thoughts to consider for your independent pet insurance research.
Australians are a nation of animal lovers.  According to the Australian Companion Animal Council, we have one of the highest incidences of pet - ownership in the world!
Dogs and cats are our favourites; around 36% of Australian households own a dog, and 23% own a cat.  We're familiar with the companionship pets bring, and the social interaction they foster, but there are other benefits too:
Lowered blood pressure and cholesterol;Increased physical activity;Strengthened immune system and reduced incidence of allergies andChildren learn responsibility, empathy and respect.
When considering a pet, you expect costs like food, bedding, the annual vet visit and so forth, but there are other costs you may not have thought about.

Let's start at the beginning.  Those purchasi…