Skip to main content

Make your fund and your Adviser earn their money!

It’s human nature to always seek value for money.  If we’re paying for something we expect a return.  Whether it be a service, a product or advice.  It’s the same with our superannuation and insurance.

I’ve met with a large number of clients in recent times who have been less than satisfied with the performance of their superannuation, and more so with the fact that for the most part, the only communication they receive is a mass produced end of financial year statement. 

You’re paying fees, you should be holding your super fund to account as in many cases you’re receiving very little in return.

Did you know that there is a requirement for advisers (like myself) to ask their clients to opt-in, or renew, their advice agreements every two years?  So basically, at the very minimum, I need to meet with each and every client at least every two years and earn my stripes. 

This provision doesn’t apply to many of the industry funds, so essentially they can “set and forget you” and earn their annual fees for very little in return.  The government has just released a similar provision for personal insurance by way of a two-year claw back provision. 

This means that if you cancel your insurance policy within 2 years, some of the commission is clawed back from the adviser.  Yes, that’s right, I have to pay them back!  As you can see, it’s very much in my best interest to give my clients the best possible advice and service I can.  To look for good returns in their superannuation and maintain long term adviser-client relationships.  Is this happening with your current superannuation provider?

Incidentally, 2 years is far too long between meetings in my opinion.  All of my clients have an annual review automatically scheduled.   I always encourage my clients to call, email or simply drop in to the office any time for a catch up.

So for those of you who have recently received your end of financial year super statement.  Have another look at it.  What are you paying?  Are you getting good returns? Do you understand what insurance you have, if any? 

Be aware of how your returns are represented.  I’ve reviewed plenty of statements from numerous providers and one of the tricks of the trade is to show your balance at the beginning of the financial year and then at the end and represent the difference as a percentage increase.

Consider this example. You might have started with $20,000 and it’s now worth $30,000 and the statement displays an “increase” of 50%.  But what about your contributions? 

Your employer has contributed $9,000 as part of your salary so the real return is only $1,000 i.e. $30,000 – ($20,000 starting balance + $9,000 contributions) which is only 5%.  Yes, I have actually seen this on some statements!

Spend the time and have a think about your superannuation and insurance.  It’s important. 

If your statement makes little sense to you (some are confusing), call or email me and I’ll be more than happy to look at it for you.  No obligation, we can work through it together and decipher what it’s saying, all it will cost you is a bit of your time.   Let's have that conversation. 

Recent appointments with my clients, has provided this feedback.
"I used Andrew O’Brien from Hindsight Wealth to manage my personal finances, superannuation and insurances and was very impressed with the friendly, professional and quick service provided.  So much so, I asked him to present to our staff at UTM Global Pty Ltd who have also engaged Andrew to grow their superfunds".   
Regards, Eden Hodson

 "I have had the pleasure of dealing with Hindsight Wealth regarding my superannuation recently.  The knowledge their Financial Advisers have of the industry has provided me with the security that my super is more suitably invested for my circumstances. Dealing with them is always an enjoyable experience and I am confident we will continue to have a mutually beneficial relationship".  Cheers, Lee.

My Detail.  Andrew O'Brien.  Financial Adviser.   m. 0403 156 625.  a. Suite 4, 30 Florence Street Newstead Q 4006.  e. andrew@hindsightwealth.com or connect with me on LinkedIn. 
Andrew O'Brien is an Authorised Representative of Synchronised Business Services AFSL No. 243313.  Click here to view our Privacy Policy.






Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Times are tough. How can you position yourself to minimise the impact?

The last few weeks have been extraordinary to say the least. We’re battling a world wide health crisis and we face uncertainty in many aspects of our lives.  It’s true that there are simply some things beyond our control and we will more than likely see many changes to our everyday lives for the remainder of 2020 and beyond. So, what can be done?  On the other side of this, many people will be left with dramatic financial stress, whether it be periods of unemployment, depleted cash reserves or battered superannuation balances.  And for many, timing will be an issue. Those who were weeks ago contemplating retirement may now need to change their plans. And those that are still accumulating for retirement have more than likely just seen their investments and superannuation return to levels of 5 or 6 years ago. Essentially the clock has be wound back in one way or another.  It may well be a good time to take stock and lay some foundations for when thing...
Post a Comment
Read more

Don't Wait till you're in your 60's to see a Financial Adviser

Ask most 30-year old’s who their financial planner is and the typical response might be ‘huh?’ After all, financial advisers are for older people with plenty of money to invest, aren’t they? Well, yes, people nearing or in retirement will benefit from sound advice. But so will younger people. With the benefit of having time on their side, and with some help from an adviser, a 30-something can easily establish a wealth creation plan that can deliver a big payoff in the future. Harness compound interest It’s been called the most powerful force in the universe, and compounding returns – earning interest on your interest – can deliver dramatic results. Imagine that, at age 30, you commence a simple savings plan. You contribute $2,000 each year to an investment that delivers an after-tax return of 6% pa. After 30 years you will have contributed a total of $60,000, but your investment will be worth $158,116. The magic of compound interest will have delivered you an effortles...
Post a Comment
Read more

Does one size fit all when it comes to Superannuation?

Super Choice – how can employers help their employees? Since 1 July 2005, most employers have been required to give their employees a choice of fund for their superannuation guarantee contributions. It is only if the employee fails to choose, or chooses a fund which cannot be used by the employer, that the employer will be able to choose the fund. Prior to this, employees essentially didn’t have a choice and they were basically stuck with the fund their employer chose for them. In the past decade since “Super Choice” was introduced, there has been a great deal of competition in the superannuation market given that employees can choose where to put their money. A competitive market is good for consumers with an almost limitless choice of highly developed options for employees to choose from. So, what does this mean for employers? Well, in the early stages of this change it was essentially an administrative burden as large companies with large numbers of staff were faced with p...
Post a Comment
Read more