Financial Planning
Professional Investment Services Pty Ltd operates under an Australian Financial Services licence and is a Principal Member of the FPA. Professional Investment Services operates through over 980 branches Australia wide.
John Rojas, our Financial Adviser can provide financial services as an authorised Representative of Professional Investment Services Pty Ltd ABN 11 074 608 558, an Australian Financial Service Licence holder (No 234951).
The Financial Planning Process
Financial planning is the process of establishing personal and financial goals and creating a way to reach them.
The plan must be monitored and reviewed periodically so that adjustments can be made, if necessary, to assure that it continues to move you toward your financial goals.
Understanding your Situation and Needs
Researching your Strategy and Preparing a Recommendation
- We will prepare a statement of advice which details a summary of our initial discussion as well as strategies you need to implement to achieve your goals.
- We will make recommendations in writing, in line with your attitude to risk depending on the relevant investment strategy.
- We will explain the basis of the strategies we recommend.
- We will comprehensively explain and disclose all fees and charges applicable to your plan.
- Together we will address any concerns to ensure that you are completely satisfied with our recommendations.
- It is at this point that we mutually agree to proceed to the next step.
Implementing your Agreed Strategy
- We will implement the agreed strategy once you are comfortable with the recommendations.
- We will only proceed if we believe we can add genuine value.
Ongoing Review, Monitoring and updating your plan as required
- We will offer to regularly review your financial plan to ensure it remains on track and properly reflects your changing needs and circumstances. As you progress through life, your circumstances and goals may change.
The Benefits of Financial Advice
- Up-to-date information about changing laws and investment markets.
- Access to new investment opportunities
- Access to research and market insights
How can a Financial Planner assist you?
A Financial Planner can assist you in the following areas:
- Make the most of your superannuation
- Maximise your income in retirement
- Review ways to secure your lifestyle and financial goals
- Learn how to diversify your investments across shares, managed funds, property, fixed interest and cash
- Discuss strategies to help reduce tax
- Learn how to accumulate wealth through margin lending
- Investment gearing strategies and risk protection
- Provide advice on redundancy or early retirement.
When should you see a Financial Planner?
Generally you should consider meeting with a financial planner at major events that occur in life which may result in a review of your financial or personal situation. Examples of milestones at which time you may consider seeing a Financial Planner include:
- Just paid off your home
- Have equity in your property you wish to invest
- Job change, redundancy payment
- Received an inheritance
- Pending retirement
- Just retired
- Looking to increase your investment portfolio
- Starting or running a business.
Less than one hour of your time could make all the difference to your financial future.
Things to consider prior to an appointment:
1. What are your goals?
Decide on your specific short and long term goals so you have something to work towards. If you expect to retire and lead a five-star lifestyle, your investments need to be leading you towards these goals.
2. What is your investment horizon?
A short-term horizon will attract a different investment strategy to a long-term one. If you are saving for a deposit for a house that you want to buy in two years' time, you would probably opt for more secure investment such as fixed interest.
3. Do you want your investments to provide you with income or growth?
Retirees generally seek income providing investments, whereas those not retiring for many years are more likely to seek investments for growth. Decide what you want your investment to provide you with before you part with your money.
4. How would you cope if the value of your investment fluctuates?
As an investor, you will become more familiar with the concept of risk and return and the fact that investments with a higher risk are generally offset by a higher return. So, what is your appetite for risk? How will this influence the investment decisions you make? If you are uncomfortable with risk, you may be better off with more secure investment such as cash or fixed interest. Just remember, if you are investing for the long term you will need to invest in some growth assets.
5. What are your tax considerations?
A young investor on a higher income will be seeking to minimise their tax while this may not be such as large consideration for a retiree. If you are seeking to minimise tax, then choose investments that provide you with growth not income.
What do you bring to the meeting?
Because it is imperative that we understand your current financial situation and lifestyle goals in order to recommend the best strategy, we will ask you a lot of questions. We will ask you about what you own and what you owe, your personal circumstances, your employment situation, your experience with investments and what your financial goals and aspirations are.
When you meet with your adviser, you'll get the most out of the meeting by bringing the following details:
- Income - your salary details as well as any dividends, or interest
- Expenses - consider annual payments like insurance as well as normal expenses
- Assets - existing investments as well as property, vehicles and shares
- Liabilities - details of outgoings other than your mortgage
Your relationship with a financial adviser, like many other relationships, is a two way street. While it is crucial that you feel comfortable with your adviser and understand what he or she is recommending, it is also critical that you properly explain your needs to them so that they can recommend the most appropriate investment strategies. This is not just at the outset but should be an ongoing process. Only through open communications between you and your adviser can you build a long-term relationship based on trust and respect – critical factors for investment success. Contact your Professional Investment Services Adviser to get started on improving your path to financial freedom.
