Brent Kelly – Financial Planner and Principal, talks to Bree James of PakMag about the top myths about why you need a Financial Planner.
I think the first consideration is having an understanding of your income and expenses and knowing how you will be able to cope on a single or reduced income. This will help in making decisions around how much maternity or paternity leave you can take. It would also be prudent for you to find out what your leave entitlements are if you are an employee and whether you are eligible for family support payments such as maternity / paternity payments or Family tax benefits.
The second consideration would be regarding the purchase of big ticket items such as cots, change tables, prams, car seats etc, which add up quickly. Saving for these items ahead of time can minimise the financial impact of setting up your home. You would also need to consider any larger expenses such as upsizing the car or house. In these instances you should consult a mortgage broker to reviewing your existing lending and ability to borrow additional funds. Do this ahead of time as the lenders are likely to assess your income and application differently if you are about to have time out of the workforce.
Lastly you need to consider family protection. Now that you are responsible for someone other than yourself and have a “financial dependant”. Life and disability insurance is important to ensure your partner and child are financially secure in the event you are unable to work or pass away. For Mum’s-to-be, this also best done ahead of time as insurers will not insure you during your last trimester. So seek professional advice with your financial planner early.
At its first meeting for 2018, the Reserve Bank of Australia (RBA) decided to leave the official cash rate unchanged at 1.5 percent. What does this mean for interest rates?
- With the latest Australian Bureau of Statistics’ consumer price inflation report (CPI) coming in below expectations last week, few analysts think the economy will improve enough to see any interest rate increases from the RBA this year.
- According to some analysts, the RBA won’t increase rates until the inflation rate has gone up quite a bit – probably not until June 2019.
- Some lenders cut rates on their fixed rate owner-occupier loans in January. There were also some very competitive deals released for principal and interest investment loans. Contact us if you’d like to know more.
With the RBA unlikely to make changes to the cash rate anytime soon, lenders will continue to make their own interest rate adjustments throughout the year. Please stay in touch and we’ll help you stay on top of any changes from your lender.
PS……It’s the new year! If you’re in the market for a new loan, have had your home loan for a while, or would just like us to check your borrowing power and rate, now is a great time to give us a call to get the ball rolling. If your family, friends and colleagues could benefit from our advice, we’d love to help them too.
As always, please do call if I can assist in anyway and in the meantime, I wish you a great week!
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You can ring up and make a phone call and have the warm feeling of being insured immediately, a big risk for being poorly insured immediately.
You will only know that you’ve been poorly insured at the time of claim, or if you’ve reviewed insurance a few years down the track and discovered you’ve been paying for a crappy policy for so many years.
Essentially you need to buy insurance with the absolute confidence to know that when you’re in your darkest hour of disability or a loved one dying that you do not have to worry about the financial security aspect.
At claim time the first thing an insurance company will do when they receive a claim in death or disability is discover a way to avoid paying this claim. This may sound cynical or even litigious but the fact is insurance companies will look for a way to not pay the claim and this is why it is essential even for the largest and best insurance companies in Australia that you obtain advice when structuring your insurance.
When you’re setting up the insurance or claiming on insurance to know you have someone on your side it’s working for you just make sense doesn’t IT?
So this might mean to buy insurance may take 2 or 3, one hour long meetings rather than a 30 minute phone call to someone you’ll never see again.
Oh and in most cases that I’ve seen using this professional can actually find cheaper and better quality insurance premiums than the one hour phone call. This even surprised me and it just goes to show how much commission is being made along the line.
Plus you’ll have insurance that you know, if you end up in a wheelchair, sick in hospital for 12 months or five years OR cancer or dead , that there is a person that you know and has met that will help you through the claim.
How do I know this, because I do it. In my 20 years of financial planning and providing insurance solutions sadly I’ve done it too many times.
But I know it gives my clients security and some confidence during a very stressful and horrible. In their life.
So with anything in life it’s important takes time and make sure it’s done right the first time.
Published by Brent Kelly, Kelly Wealth Services
Many Australians do not quite get what a financial planner does as there is great misunderstanding out there.
For example, many people think that financial planners can only help you if you’re wealthy, but in fact the benefit of seeing a financial planner is really for everybody.
Whether you are a teenager starting out or you are 65 with a little bit of money in superannuation and wanting to retire – seeing a financial planner can provide a great benefit for you.
Most people want to understand something tangible, like ‘what they will get’ if they see a planner – such as what services or what products, but the products are really just a small element.
When meeting a financial planner, getting an understanding of why they are doing what they are doing, I think is essential.
For instance, I am a financial planner and run a growing business. I have been doing this for 25 years and have looked after all types of clients in all types of financial situations. I have clients that are just starting out, clients in financial difficulty and quite wealthy clients that just want someone else to manage their affairs.
The real glow I get is when I see a client’s attitude towards money changes, their stress goes away and they no longer lie awake at night worried about their finances and when they can actually see that they can retire with a future that has clarity. Another great one is when a young family walk away knowing they have a direction with goals and they have financial security.
These are the reasons I do what I do, as I know that we reduce anxiety and we allow people to enjoy their life rather than stress about money.