Country Wealth Financial Services

23/07/2019

Get rich slowly.

It's not very exciting, but that's our mantra at Country Wealth. Saving to achieve your goals takes discipline and patience. Those who know me would know that I like to do a bit of running. This is the perfect metaphor when saving for long term goals such as retirement. It's all about pacing yourself, sticking to your plan and not being tempted to do anything too risky.

Time is the greatest asset you have, the clock is running down and will need to be used wisely. This is where a trusted Financial Adviser can help you set up a savings programme that will help you achieve your savings goal and regular quarterly and annual reviews will ensure we stay "on pace".

Drop us a message or give us a call to have a no obligation, confidential discussion about your savings goals.

Real advice from a real Financial Adviser.

18/07/2019

The value of advice.

I read an article this morning that stated the value of seeing a full service Financial Adviser is a minimum of 4.4% of invested funds. This was an Australian study by Russell Investments and they arrived at this figure taking into account 3 main areas:

1. Helping clients avoid behavioural mistakes 1.9%
2. Correct investment strategy and risk profile 1.6%
3. "Tax-smart" investing contributes 0.9% to 1.2%

This is a good summary of the minimum return your adviser should be providing you for good advice. Point 1 and 2 are very evident in times of share market corrections. Having a steady hand to make sure you do not make a spur of the moment investment decision is valuable.

Notice there is no mention of products in this equation? A good adviser does not need to sell you a product in order to provide quality advice.

If you would like to know how we can help, drop us a message or give us a call.

Real advice from a real Financial Adviser.

16/07/2019

Beware the forgotten insurance cover in your super account!

The Government has just done many super account holders a massive favour. They have presided over a "clean up" of old and sometimes forgotten life, TPD and income protection policies that were held in super accounts that have been considered inactive and low balance. This stops the situation where the premiums slowly (or quickly) eat away at the remaining balance. I see this complaint often from new clients seeking to move their super as their fees are too high. On closer inspection, the fees are actually insurance premiums that have gone from costing a couple of hundred dollars per annum to several thousand.

While I am a fan of holding some insurances within super when it suits the client, these premiums are reviewed, known and controlled. It is when you have forgotten about the cover and the premiums skyrocket because they are set to increase as you get older. I have seen premiums top $10,000 pa and the policy holder did not even know they had insurance! This is part ignorance from the policy holder but the super fund should also be more diligent in notifying the owner of the crippling premiums.

If you think the fees look high when you receive your annual super statement over the next month or so, check the breakdown of the fees. You might find that your old insurance cover has started to chew through your savings. If you are unsure, give us a call and we can decipher the statement for you and let you know what you are paying for.

12/07/2019

The truth about ethical investing.

When is ethical investing not so ethical? When the “ethical” investment manager has tolerance to mining and oil!

I recently had a lesson in ethical investment from a client who only wanted to invest in funds that were not associated with mining and oil along with the usual suspects of gambling, to***co, questionable labour standards, etc. This turned out to be harder than I thought.

There are many investments that are labelled “Ethical” or “Sustainable” but when you research these investments you find that nearly all of them will have some exposure (tolerance as they call it) to big oil or mining. When it comes to Australian share fund investment this makes it particularly difficult for a fund manager given that much of our market is resource based. I found a couple of funds that were totally clean of oil, gas and mining but the choices are few and if the resource market does well you will underperform. However, this is rarely a consideration for the truly ethical investor.

My second lesson came when I explained my choice of property fund. She listened diligently to the reasons why I chose the fund and at the end she asked if this property fund had any resource based companies or Woolworths as a tenant? Well actually, yes. Woolworths was a tenant at a couple of locations. That was a big no to that property fund due to Woolies involvement in liquor and gaming (which is about to change).

After much more research we did settle on a portfolio that was considered ethical enough and I will be interested to see how the long term performance compares to a non-ethical benchmark.

If you would like to consider moving to a more ethical and sustainable investment portfolio feel free to send us a message or call to discuss. All the research has now been done for you!

09/07/2019

Should I invest in super or pay off my mortgage? 🤷‍♂️

This is a question I get asked a lot and the answer will vary among advisers for various reasons. One reason why an adviser will always suggest super is that they receive a set percentage of your super balance as their commission. This fee arrangement will increase the chances of conflicted advice as the more you put into super, the more they get paid. It's human nature. A flat fee is a more ethical approach and far less likely to lead to conflicted advice. This in the best interests of the client, always.
Back to the original question, everyone is different but if mortgage rates are at historic lows (circa 3.7%pa) doesn't it make more sense to reduce debt while the cost of that debt is low? There are many moving parts to this argument and it does depend on how close you are to retirement (think tax-free income from super to help repay your debt).

I'm a big fan of the ASIC Moneysmart website that has some great tools and calculators available that can provide you with an insight as to what you should be doing. If you are still not sure, gives us a call or message us and we can discuss in person.

What do you think? Super or Mortgage?

Want to find out the pros and cons of putting extra money towards your super vs mortgage? Visit ASIC's MoneySmart website for more info.

07/07/2019

We just got to 50 Page Likes!
Thanks to those who are new on-board the Country Wealth Facebook feed and those who have been patiently waiting for me to figure out how best to use Facebook. I have been quiet for a while with other activities (mostly recreational) but promise to provide regular updates and finance related posts. My main goal is to demystify the finance process and bust open the tricks and traps of the advice industry (let me know if you have any war stories to share). If you have any questions or requests, please post in the comments and I will answer in the best detail I can without falling foul of personal versus general advice laws 🧐. Now bring on the Q&A...

06/07/2019

Have you been to a Financial Adviser and was offered a product as a solution when you were actually expecting real advice? Did you ever hear from that adviser again except when they need you to sign up to their ongoing service every 2 years? Did you even know what service you are paying for?

At Country Wealth, we actually provide advice. I know, a Financial Adviser providing advice. Who would have thought... We take the time to listen to what your financial goals are and come up with real solutions as to how you can achieve them.

These goals are typically:
How can I repay my debt faster?
How can I reduce my tax?
How much income will I need in retirement?
What lump sum will I need to fund my retirement?
Can I qualify for Age Pension?

The goals may vary but the end result is usually always the same, our clients crave financial independence so they can afford a comfortable retirement.

We prefer to partner with our clients over the long term to make sure they are on-track to meet their goals or to make adjustments as life gets in the way.

So, if you are after a Financial Adviser that is University qualified, a Chartered Accountant with post-graduate qualifications in Financial Planning who will partner with you for the long haul and not just clip your ticket with a product sale, then send us a message. We can provide you with more information about our services and give you a formal quote for real advice.

31/10/2017

Country Wealth has now moved into their new premises located at 125 Liverpool St, Scone. Feel free to drop in for a chat and check out our new office. Signage is currently a little sparse but just look for the advertising board on the foot path 😁

24/05/2014

Hopefully you are all now aware that the bypass for Scone is to proceed. There will be no one project that could affect the commercial and social climate of the town than this one.