IFA Awards for Excellence – August 2014

Should I Top Up My Superannuation?

This question is one we frequently receive at LIFE Financial Planners. The motivation behind it often boils down to two key considerations: ensuring you have enough retirement savings and maximising potential tax benefits. Consulting with a superannuation planner at Life Financial Planners in Perth can provide clarity on this important decision.

Why Consider Topping Up Your Super?

The primary reason to consider topping up your superannuation is to ensure a comfortable and enjoyable retirement. Beyond that, there are significant tax advantages associated with the superannuation system. Here’s what you need to know:

Tax Benefits

Superannuation is an attractive option for accumulating retirement savings due to its tax benefits:

· Tax-Free Income in Retirement: Once you retire and convert your super savings into a regular income, this income is tax-free.

· Lower Tax Rates During Accumulation: Earnings within your super fund are taxed at 15% on income and 10% on capital gains, which is typically lower than personal tax rates.

· Tax-Free Payouts to Spouses: Superannuation is tax-free when paid out to a spouse upon your passing, unlike non-super investments that may incur capital gains tax.

The Drawback: Preservation

One key drawback is that superannuation savings are preserved until you reach at least 60 years of age and retire. This means any money you contribute to super is inaccessible until then. Therefore, it’s important to ensure that any top-up contributions are funds you won’t need until later in life.

Contribution Caps

When considering topping up your super, be aware of contribution caps, particularly the concessional contribution cap, which is currently $30,000 per year. Contributions above this limit may incur penalty taxes. Make sure to check how much of this cap is already being used by your employer’s contributions to determine how much more you can contribute.

Is Topping Up Right for You?

The decision to top up your super should consider your individual circumstances:

· Current Taxable Income: If your taxable income is under $45,000, the tax benefits of super contributions might be minimal.

· Alternative Uses of Funds: Consider whether these funds might be better used elsewhere, such as paying off a mortgage, which offers guaranteed returns equivalent to your mortgage interest rate.

· Future Top-Up Opportunities: You might also consider making larger lump-sum contributions later in life through non-concessional contributions or downsizing provisions.

How Much Do You Need?

To determine whether you should top up your super, start by estimating how much income you’ll need in retirement. Use tools like MoneySmart to estimate how much savings are necessary to generate that income. Then, compare this with your current super balance and projected future contributions to see if additional contributions are needed.

Get Advice From A Superannuation Planner in Perth

Australia’s superannuation system is complex, and it’s crucial to get advice tailored to your specific circumstances. If you’re unsure about whether to top up your super, reach out to one of our financial planners at LIFE Financial Planners in Perth. We can support you with tailored superannuation advice and develop a strategy that aligns with your retirement goals.

Accountant vs. Financial Planner: Understanding the Key Differences

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When it comes to managing your finances, understanding the distinction between an accountant and a financial planner is important as both professions play different roles in ensuring financial health, with their focus, scope, services provided, and approach can vary significantly. Let’s delve into how an accountant or financial planner in Perth can help your needs.

Focus and Scope

Accountants:

Accountants primarily deal with financial reporting, tax preparation, auditing, and analysing past financial transactions. Their primary focus is on ensuring legal tax adherence and minimisation. Reviewing your financial history to provide insights into your current financial situation and ensure that all financial activities comply with relevant laws and regulations.

Financial Planners:

Financial planners, on the other hand, have a more advisory role. They help you with long-term financial planning, investments, and wealth management. Their focus is on recommending when and where to invest money to achieve future financial goals. Financial planners take a holistic view of your financial life, including your investments, retirement plans, and overall wealth management strategy.

Services Provided

Accountants:

Accountants typically offer services such as:

Tax Preparation
Bookkeeping
Auditing
Business finance advice
Asset protection

These services are geared towards ensuring accurate financial reporting and compliance with tax laws. Accountants also help optimise your tax obligations and provide financial insights based on historical data.

Financial Planners:

Financial planners provide services such as:

Retirement planning
Wealth management
Investment advice
Superannuation planning
Insurance recommendations

These services are aimed at helping you set and achieve long-term financial goals. Financial planners develop strategies to build and preserve wealth, focusing on your future financial security.

Timeframe

Accountants:

Accountants often focus on past and present financial matters. For instance, they prepare tax returns for the previous year and ensure that current financial records are accurate and compliant with regulations. Their work is rooted in analysing historical data to provide a clear picture of your financial standing.

Financial Planners:

Financial planners take a more forward-looking approach. They help you set and achieve long-term financial goals, such as retirement, education funding, and investment growth. Their advice is future-oriented, focusing on creating strategies that will benefit you in the years to come.

Your Needs

Accountants:

If you’re primarily seeking tax advice, financial reporting, or compliance-related services, you would typically consult an accountant. Accountants are essential for ensuring that your financial records are accurate and that tax obligations are minimised within the bounds of the law.

Financial Planners:

Those looking for help with long-term financial planning, investment strategies, or retirement planning would generally seek a financial planner. Financial planners are invaluable for developing comprehensive financial strategies that align with your future goals and aspirations.

Choosing a Financial Planner in Perth

Choosing the right financial planner significantly impacts your financial future. At Life Financial Planners in Perth, we specialise in providing tailored financial guidance to help you achieve your long-term financial goals. Our team of experienced financial planners in Perth offers expertise in both financial planning and wealth management, ensuring you receive comprehensive advice that aligns with your unique needs.

Whether you are planning for retirement, managing investments, or seeking long-term financial security, our comprehensive approach ensures you have the support and strategies necessary to succeed. Reach out to Marijana or Mei at (08) 9322 1882 to speak to a planner and embark on the path to achieving your financial goals.

Undeniable Portfolio Diversification Strategies for Perth Investors

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At Life Financial Planners, we understand the importance of building robust investment advice tailored to your unique financial aspirations. If you’re in Perth and seeking to fortify your financial future, understanding the intricacies of portfolio diversification can be a game-changer. Let’s delve into this essential aspect of investment strategy, drawing insights from various sources to provide you with comprehensive guidance.

Why Portfolio Diversification Strategies Matter

In today’s dynamic investment landscape, diversification emerges as a fundamental strategy to mitigate risk and optimise returns. By spreading investments across different asset classes, investors can shield themselves from the adverse impacts of market volatility and economic uncertainties.

Consider this analogy: just as a diversified diet ensures better health outcomes by providing a range of essential nutrients, a diversified investment portfolio safeguards your financial health by offering exposure to various market segments.

How to Achieve Diversification

Asset Class Allocation: Diversifying across asset classes is the cornerstone of a well-rounded investment strategy. This involves allocating funds to different categories such as stocks, bonds, property, and cash equivalents. Each asset class reacts differently to market conditions, thereby reducing overall portfolio risk.
Spread Within Asset Classes: Within each asset class, further diversification is typically recommended (can vary based on your circumstances). For instance, if investing in stocks, consider spreading investments across different sectors like financials, resources, healthcare, and energy. Similarly, diversify across different fund managers and product issuers to minimise concentration risk.
Global Investment: While Perth offers ample investment opportunities, global diversification can enhance portfolio resilience. Investing in overseas markets exposes investors to a broader spectrum of economic conditions, reducing dependence on local market fluctuations.
Utilise Investment Vehicles: Leveraging managed funds, ETFs, and LICs can streamline the diversification process. These vehicles offer exposure to diversified portfolios across various asset classes, making it easier for investors to build a well-balanced portfolio.

Regular Portfolio Review with a Financial Planner:

As you embark on your journey towards portfolio diversification, partnering with a financial planner Perth can add significant value. Our role extends beyond mere guidance; we provide ongoing support and expertise to ensure your investment strategy remains aligned with your financial goals.

Through regular portfolio reviews, we help you:

Assess the current composition of your portfolio and identify areas for diversification.
Implement strategies to rebalance your portfolio and maintain optimal asset allocation.
Stay informed about market trends and emerging opportunities for diversification.
Navigate complexities such as tax implications and regulatory changes affecting your investments.

Investing in Your Financial Future

Investing can be complex, but with the right guidance, you can navigate the intricacies of portfolio diversification effectively. At Life Financial Planners, we are committed to empowering Perth investors like you to make informed decisions and secure a prosperous financial future.

Ready to embark on your investment journey? Contact our team today at (08) 9322 1882 to schedule a consultation and take the first step towards achieving your financial goals. Don’t wait any longer to invest in your future with LIFE Financial Planners.

How Much Does a Financial Planner Cost in Perth?

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Understanding the cost of hiring a financial planner in Perth is crucial for making informed decisions about your financial future. Various fee structures exist, and knowing the differences can help you choose the best financial planner for your needs.

Financial Planner Perth Fees:

Percentage of Assets Under Management (AUM): In this model, financial planners charge a percentage of the assets they manage for you. Typically, this fee ranges from 1% to 2% annually. While this structure aligns the planner’s interests with yours—since their compensation grows with your portfolio—it can become expensive as your assets increase.
Hourly Rate: Some financial planners charge an hourly rate for their services. This model is particularly beneficial if you require specific advice or periodic check-ins rather than ongoing management. Hourly rates can vary widely, but this approach offers flexibility and can be more cost-effective for those who don’t need continuous support.
Flat Fee: Flat fees involve a fixed charge for specific services, such as creating a comprehensive financial plan or conducting an annual review. This model provides predictability, allowing you to budget for financial planning services without worrying about fluctuating costs. Flat fees can be particularly appealing for those who want clear, upfront pricing.

Retainer Fee: A retainer fee is a regular, recurring fee (often monthly or quarterly) for ongoing access to financial advice. This model ensures continuous support and advice but requires a consistent financial commitment. Retainers provide peace of mind, knowing you have a financial expert available whenever needed.

Life Financial Planners: Fee-for-Service Model

At Life Financial Planners, we adopt a fee-for-service model, which provides several key advantages:

Transparency: Our fee-for-service model ensures there are no hidden charges or unexpected fees. You know exactly what you’re paying for, which fosters trust and confidence.

Objectivity: We ensure that our advice is solely in your best interest.

Customisation: Our services are tailored to your specific financial needs and goals. This personalised approach ensures that you receive advice and strategies that are most relevant to your situation.

Benefits of the Fee-for-Service Model

Clarity: Understand exactly what services you are receiving and their associated costs. This clarity helps you make informed decisions about your financial planning.

Independence: Receive impartial advice that is not influenced by commissions or product sales. Our sole focus is on helping you achieve your financial objectives.

Value: Pay for the advice and services that directly benefit you. This model ensures you receive personalised and effective financial strategies without unnecessary costs.

Why Choose a Financial Planner?

Choosing a financial planner in Perth like Life Financial Planners ensures that you receive professional and trustworthy investment advice. Certified advisers are bound by strict ethical standards and regulatory requirements, ensuring they act in your best interest. Independence means that their recommendations are free from conflicts of interest, providing you with peace of mind and confidence in your financial plan.

Ready to Take Control of Your Financial Future?

If you’re considering professional financial advice, discover how Life Financial Planners in West Perth can help you achieve your financial goals. Our fee-for-service model, combined with our commitment to transparency, objectivity, and personalised service, makes us the ideal partner for your financial journey.

Contact our team today at (08) 9322 1882 to schedule your first complimentary consultation and take the first step towards achieving your financial goals. Don’t wait any longer to invest in your future with LIFE Financial Planners. 

Understanding Short Term vs Long Term Investments

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At Life Financial Planners, we understand that your financial journey is unique, just like your investment needs. If you’re in Perth and looking to build wealth before retirement and feel more secure in your financial future, having a solid investment strategy is essential. Let’s explore the differences between short-term and long-term investing to help you make informed decisions that align with your financial goals.

Understanding Short-Term vs. Long-Term Investing

The primary difference between short-term and long-term investing lies in how you approach an investment, not the investment itself. For instance, a stock can be used for both short-term and long-term investments depending on whether you buy and sell it within a month or hold onto it for several years. Understanding these differences allows you to craft an investment strategy that aligns with your long-term wealth goals.

Main Differences Between Short-Term and Long-Term Investments

Aspect	Short-Term Investing	Long-Term Investing
Duration	Less than a year	At least a year, often several years or more
Strategy	Active trading, frequent transactions	Buy-and-hold, passive investing
Risk	Higher short-term risk, frequent market monitoring	Lower long-term risk, focus on market growth
Taxation	Higher tax rates on short-term gains	Lower tax rates on long-term gains
Liquidity	High, quick access to funds	Lower, less accessible

Crafting Your Investment Strategy in Perth

When deciding between short-term and long-term investments, consider your financial goals, time horizon, and risk tolerance. Both approaches contribute to a well-rounded portfolio.

Investment Goals and Time Horizon:

Near-Term Goals: If you need funds in the near future, short-term investments are ideal. For instance, saving for a home loan deposit or a significant purchase in the next few years.

Long-Term Goals: For goals like retirement, long-term investments are more suitable, allowing you to benefit from market growth and compounding returns over decades.

Risk Tolerance:

Short-Term Risk: If you’re a risk-averse investor you may prefer stable, low-risk options, including high-yield savings accounts, CDs, short-term bonds, and money market accounts. These are less risky and are suitable for growing savings for near-term needs.

Long-Term Risk: Those with a longer time horizon can assume more risk, as they have time to recover from market downturns, making investments like index funds and stocks ideal.

Building a Balanced Portfolio

At Life Financial Planners, we advocate for a diversified portfolio that combines both short-term and long-term investments. This balanced approach ensures that you can meet both your immediate financial needs and long-term wealth-building goals, whilst diversifying risk and optimising your returns.

An Investment Strategy Tailored to You

Investing might feel overwhelming, but it doesn’t have to be. We’re dedicated to assisting you in creating a tailored investment strategy through expert financial planning. Reach out to Marijana or Mei at (08) 9322 1882 to speak to a planner and embark on the path to achieving your financial goals. Don’t delay investing in your future with LIFE Financial Planners right here in Perth.

How to Grow Your Superannuation

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Superannuation, or simply “super,” isn’t just a savings plan—it’s your key to secure and fulfilling retirement plans. At LIFE Financial Planners in Perth, we recognise the significance of making informed decisions about your super, and we’re here to guide you every step of the way.

Super Contributions

Super contributions play a significant role in building your retirement savings. There are various types of contributions you can make to your super fund, including employer contributions, voluntary contributions, government co-contributions, spouse contributions, and downsizer contributions:

1. Employer Contributions: Your employer is required to contribute a percentage of your earnings into your super account. This compulsory contribution, known as the super guarantee, must be at least 11% (increasing to 11.5% on July 1st 2024) of your ordinary time earnings.
2. Additional Voluntary Contributions: Making extra contributions to your super can significantly accelerate its growth. You can contribute additional funds through salary sacrifice arrangements or by making after-tax contributions.
3. Government Co-contributions: Eligible individuals making after-tax contributions to their super may qualify for government co-contributions. The government matches a portion of your contributions, providing a valuable boost to your retirement savings.
4. Spouse Contributions: If your spouse earns a low income or is not working, you may be eligible to contribute to their super account and claim a tax offset. This can be a tax-effective way to bolster their retirement savings.
5. Downsizer Contributions: If you’re aged 65 or older and have owned your home for more than ten years, you may be able to contribute up to $300,000 from the sale of your home into your super. This one-time contribution can enhance your retirement nest egg.

Investment Strategies

Investment strategies involve determining how you allocate your superannuation funds across different asset classes, such as stocks, bonds, property, and cash. The primary goal of an investment strategy is to achieve the optimal balance between risk and return based on your financial goals, risk tolerance, and investment time horizon:

1. Asset Allocation: Diversifying your super investments across different asset classes, such as stocks, bonds, and property, can help manage risk and optimise returns over the long term.
2. Risk Management: Assessing your risk tolerance and investment time horizon is essential for selecting appropriate investment options within your super fund. If you’re a conservative investor, you may prefer lower-risk options, while oppositely, if you’re an aggressive investor, you may opt for higher-risk, higher-reward investments.
3. Regular Review: Monitoring and periodically reviewing your super investment portfolio is essential for ensuring it remains aligned with your financial goals and risk tolerance. Adjustments may be necessary based on changing market conditions or personal circumstances. Regular reviews with a financial planner can provide valuable insights and adjustments to keep your investments on track.

Determining Your Retirement Needs

1. Retirement Lifestyle: Consider the lifestyle you envision for your retirement years, including housing, travel, healthcare, and leisure activities. Estimating your expected expenses can help determine how much super you’ll need to support your desired lifestyle.
2. Superannuation Gap: Calculate the gap between your projected retirement expenses and your expected super balance. Identifying any shortfall early allows you to implement strategies to bridge the gap, such as increasing contributions or adjusting investment strategies.
3. Age Pension Considerations: Factor in any potential Age Pension entitlements when estimating your retirement income. Understanding your eligibility for government benefits can impact your overall retirement planning strategy.

At LIFE Financial Planners, we’re dedicated to helping you take control of your financial future and utilise the full potential of your superannuation benefits. Don’t leave your retirement savings to chance—let us empower you to achieve a secure and prosperous retirement with our expert superannuation advice. Reach out to Marijana or Mei today at (08) 9322 1882 to schedule a consultation at our West Perth office.

Your Comprehensive Guide to Retirement Planning in Perth

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Perth is experiencing rapid growth, and navigating the financial landscape amidst this transformation may be essential in planning your retirement in this ever-changing city. Our team of experienced financial planners are here to guide you through all the essential steps for Retirement, covering key aspects such as preliminary research, understanding debt and implementing effective planning.

Step 1: Preliminary Understanding of Your Retirement Needs

Retirement planning begins with a clear understanding of your desired lifestyle in Perth. Start by assessing your expected expenses, including housing costs, healthcare, leisure activities, and potential travel. Consider the unique aspects of living in Perth, such as the property market trends and lifestyle preferences, to accurately estimate your retirement budget.

Our team at Life Financial Planners specialise in crafting personalised retirement plans tailored to you.

Step 2: Planning Your Superannuation Strategy

Superannuation is a cornerstone of retirement funding. Consider options like salary sacrifice, where you can agree with your employer to contribute to your super from your pre-tax salary. Other strategies include voluntary contributions and investment diversification. This can help lower your income tax while boosting your retirement savings.

Our retirement experts at Life Financial Planners can assist you in maximising tax-effective superannuation options. We’ll work with you to ensure your superannuation strategy aligns with your retirement goals.

Step 3: Understanding Your Retirement Environment

Beyond superannuation, there are opportunities, like leveraging the government-age pension and other available investment avenues. Diversify your retirement income sources to mitigate financial risks and capitalise on opportunities. Or explore local investment options, such as property or shares, with the guidance of our Perth-based retirement planners to enhance your retirement income streams.

Step 4: How Debt Affects Retirement Planning

As you approach retirement, it’s essential to prioritise your finances to ensure a smooth transition into this next chapter of life. Debt management plays a crucial role in retirement readiness. Identify and prioritise debt reduction strategies and consider Perth’s property market dynamics and interest rate trends.

Start by tackling high-cost debts that could impact your retirement savings and lifestyle. Strategically paying off these debts, you’ll pave the way for a more financially secure future. Our team at Life Financial Planners can provide tailored advice on managing debt effectively as part of your retirement plan.

Step 5: Putting Your Retirement Plan into Action

Once you’ve crafted a comprehensive retirement plan, take proactive steps to implement it. Regularly review and adjust your plan to remain relevant and aligned with your retirement goals amidst an evolving economic landscape. You can also discuss it with our team, who can leverage local expertise to provide ongoing support and guidance as you navigate the path to a secure and fulfilling retirement.

How Life Financial Planners can help you with Retirement Planning Advice in Perth

Effective retirement planning can significantly impact your financial future and quality of life. Whether retirement is right around the corner or still a distant thought, having a robust financial strategy can bring clarity and confidence to your future outlook.

At Life Financial Planners, we’re committed to guiding you through every stage of your retirement planning journey. Our experienced team of financial planners specialises in crafting personalised strategies tailored to your unique retirement goals and aspirations.

Reach out to Marijana or Mei at our West Perth office by calling 08 9322 1882. Let’s start a conversation about securing your retirement with confidence and clarity.

How a Financial Adviser Can Help You With Investing

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While the world of investments can seem complex and daunting, partnering with a knowledgeable Financial Adviser can make all the difference. Here at Life Financial Planners in Perth, we’re committed to guiding you through the intricacies of investing and helping you build a robust investment strategy tailored to your needs. Let’s delve into how a financial adviser in Perth can assist you in making informed investment decisions.

Understanding Your Financial Goals

Understanding your unique financial goals and aspirations is the first step towards successful investing. First and foremost, it’s all about taking time to understand your unique financial goals and aspirations. Whether you’re saving for a major purchase, financial planning for retirement, or aiming to grow your wealth, our Perth financial advisers will work closely with you to define clear objectives that drive your investment strategy.

Staying Educated and Informed

Investing wisely requires a strategic approach, commitment and continuous learning. As financial planners, we understand the importance of investment advice and staying informed about investment strategies, market trends, and fundamental principles to assist you in achieving your financial goals effectively.

One key aspect of our role is to help you avoid making impulsive investment decisions based on short-term market movements. Instead, we’d like to emphasise the importance of prioritising your long-term financial objectives and maintaining discipline in your investment approach. As your trusted advisor, we can provide personalised guidance, tailored strategies, and professional insights to help you make informed investment decisions aligned with your objectives, aspirations, and overall financial plan.

Conducting In-Depth Investment Research

To generate effective results, we have access to an extensive network of resources and market insights that enable them to conduct thorough investment research. We analyse various asset classes, investment products, and market trends to identify opportunities aligned with your investment strategy. A research-driven approach ensures that your investments are adapted based on well-informed observations and positioned to achieve your financial objectives.

Assessing Risk Tolerance

Investing involves varying degrees of risk, and determining your risk tolerance is crucial in selecting suitable investments. A Perth financial adviser will assess your comfort level with risk and volatility, considering your age, financial situation, and investment experience. This assessment helps design an investment portfolio that matches your risk profile, ensuring you’re comfortable with the investment decisions made.

Designing a Diversified Portfolio

One of the fundamental principles of investing is diversification. As financial advisers, we will construct a diversified investment portfolio tailored to your goals and risk tolerance. This portfolio may include a mix of defensive investments (like cash and fixed interest) and growth investments (like shares and property), aiming to optimise returns while managing risk effectively.

Monitoring and Adjusting Investments

Monitoring your investments allows us to track performance against benchmarks and assess market conditions effectively. By continuously monitoring your investment portfolio, we can identify opportunities and risks promptly, enabling us to make proactive adjustments when necessary. This proactive approach helps ensure your investment strategy aligns with your evolving financial objectives and risk tolerance.

Regular reviews and updates are essential components of successful investment management. They give you the confidence and peace of mind that your financial plan is adaptable and responsive to changing market dynamics and personal circumstances. As your dedicated financial advisers, we work closely with you to optimise your investment portfolio and achieve your long-term financial aspirations.

Ready to take the Next Step with a Perth Financial Adviser?

At Life Financial Planners, our mission is to empower you to make confident investment decisions. Our Perth financial advisers are committed to providing personalised guidance and support, ensuring your investment strategy reflects your aspirations and evolves with your circumstances.

Reach out to Marijana or Mei at our West Perth office by calling 08 9322 1882. Let’s start the conversation about securing your retirement with confidence and clarity.

How to Invest Basics from Financial Advisers You Can Trust

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At Life Financial Planners, we understand that investing can seem daunting, but it doesn’t have to be. With the right knowledge, guidance and investment advice, you can navigate the world of investments confidently and effectively. Let’s explore the basics of investing and discover how you can take control of your financial future right here in Perth.

Plan, Research, and Diversify

When it comes to investing, planning, researching, and diversifying are paramount. These three principles serve as the foundation for successful investing, helping you find investments that align with your risk tolerance and financial goals. By following these golden rules, you can make informed decisions and accelerate your journey towards financial freedom.

Golden Rules of Investing

Before diving into the specifics of investments, it’s essential to adhere to some golden rules:

Pay off Your Debts First: Prioritise paying off any outstanding debts, such as credit cards or personal loans, before venturing into investments.

Build Emergency Savings: Ensure you have enough savings to cover at least three months’ worth of expenses. This safety net will prevent you from having to sell investments in case of emergencies.

Investing with Perth Financial Advisers

Once you have your debts under control and emergency savings in place, it’s time to focus on investing for your future. At LIFE Financial Planners, we’re here to help you every step of the way. Our six-step process begins with a thorough discussion of your financial goals and attitudes towards investment risk.

Our top Perth financial adviser then designs an investment asset allocation specifically tailored to you, which we implement and monitor regularly. Our team conducts extensive research and analysis to ensure that our recommendations are current and relevant to your unique circumstances.

Examples of Investments

Let’s explore some examples of defensive and growth investments:

Defensive Investments:

Cash: Bank accounts, high-interest savings accounts, and term deposits are examples of cash investments. These provide a low-risk option for short-term financial goals and serve as a safety net in your investment portfolio.

Fixed Interest: Government bonds, corporate bonds, debentures, and capital notes fall under fixed-interest investments. These offer steady income and lower risk compared to growth investments.

Growth Investments:

Property: Investing in residential or commercial properties can provide both rental income and capital growth over the long term. While property investments carry higher risk, they offer the potential for substantial returns.

Shares: Investing in shares involves purchasing ownership in a company. Shares offer the potential for significant capital growth and may also provide income through dividends. However, they come with higher risk and can be volatile in the short term.

Staying Informed from Perth Financial Advisers

With ever-changing market and economic conditions, staying informed is crucial. At each of your regular portfolio reviews, we provide research for all of your recommended investments and explain the reasoning behind all recommendations. It’s essential to know that your portfolio is researched, structured, and, most importantly, tailored to you and your goals.

At Life Financial Planners, we understand that investing can seem daunting, but it doesn’t have to be. We’re committed to helping you build a secure financial future through strategic financial planning. Contact Marijana or Mei today at (08) 9322 1882 to schedule a consultation and take the first step towards achieving your financial goals. Don’t wait any longer to invest in your future with LIFE Financial Planners.

Understand Super: How a Perth Financial Planner Can Help You

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In Australia, superannuation, or simply “super,” is not just a savings plan—it’s your ticket to a secure and prosperous retirement. At LIFE Financial Planners, we understand the importance of making informed decisions about your super, which is why we’re here to empower you every step of the way.

Understanding Superannuation

Superannuation is a long-term savings plan designed to provide for your retirement. It operates on a simple premise: your employer contributes a percentage of your earnings into your super account, which is then invested by your super fund until you retire. These contributions, along with potential investment earnings, form the basis of your retirement income.

Choosing the Right SuperFund

Superannuation is more than just a savings account; it’s a long-term investment in your future. Your employer contributes a percentage of your earnings into your super account, which is then invested by your super fund until you retire. These contributions, along with potential investment earnings, form the foundation of your retirement income.

Types of Superannuation

In Australia, super funds generally fall into four main categories: retail, industry, public sector, and corporate. Each type of fund has its unique characteristics and target audience:

Retail Super Funds: Run by banks or investment companies, retail funds offer various investment options and cater to you regardless of industry and background.
Industry Super Funds: These funds are typically run to benefit members within specific industries, such as healthcare or education. They often offer competitive fees and profit-for-member structures.
Public Sector Super Funds: Reserved for government employees, public sector funds provide modest investment choices and low fees, with profits reinvested into the fund for the benefit of members.
Corporate Super Funds: Arranged by employers for their employees, corporate funds vary in structure and offerings. Larger companies may operate with their own funds, while others may opt for retail or industry fund options.

How a Perth Financial Adviser Can Help You

At LIFE Financial Planners, we understand the importance of your recommended superannuation funds—it’s not just another account; it’s your future. With the ever-changing landscape of super in Australia, having experts on your side is crucial. Here’s how we can help:

1. Track down your lost super. There is over $18 billion worth of lost super in Australia. Some of it may be yours.
2. Choose the right fund for your needs.
3. Tailor an investment strategy for you.
4. Work out how much you need to contribute to your working life to live the retirement you want.
5. Boost your super! We can show you how to make the most of various tax-saving concessions such as salary sacrifice and contribution strategies.
6. Use your super to tax effectively provide for you and your family in the event of misfortune.
7. Ensure your super goes to the right people at the right time in the event of your passing.
8. Stay up to date with legislative changes, so you’re not disadvantaged.

At LIFE Financial Planners, we’re committed to helping you take control of your financial future and grow your superannuation benefits. Don’t leave your retirement savings to chance—let us empower you with the full potential of your super. Together, we’ll create a tailored strategy to ensure your super works its hardest for you, paving the way for a secure and prosperous retirement. Contact Marijana or Mei today at (08) 9322 1882 to schedule a consultation in our West Perth office.