Financial planning services can involve much more than investment advice. Depending on the agreed scope, financial planning may consider areas such as cash flow, debt, superannuation, investments, personal insurance and retirement planning, together with relevant tax and estate planning considerations.
The purpose is to understand how different financial decisions interact. A change to your superannuation strategy, for example, may affect your current cash flow, tax position, investment approach and retirement plans. Looking at these areas together can help you make more informed decisions than considering each issue separately.
People seek financial advice at many different stages of life. This may include someone balancing a mortgage and growing family, a person beginning to build wealth, or someone approaching retirement and considering how to use their savings and superannuation.
The scope of a financial plan should be clear from the outset. Depending on what you need help with, advice may address one particular issue or several connected areas.
This can include managing income, expenses and debt, reviewing superannuation and investments, considering personal insurance needs, planning for retirement, assessing the tax implications of financial strategies, and identifying estate planning matters that may need to be discussed with a solicitor.
Personal financial advice takes account of a person’s objectives, financial situation and needs. This is different from general advice or financial information, which is not tailored in the same way. Moneysmart provides further information about the difference between general and personal financial advice.
At Primary Wealth Management, the advice process begins by understanding your circumstances, priorities and the areas you want advice on. People with similar incomes or superannuation balances may require different strategies because of their family circumstances, financial commitments, tolerance for risk and longer term goals.
You do not necessarily need a large investment portfolio to seek financial advice. People commonly consider advice when starting or growing a family, reviewing their mortgage and other debts, changing jobs or careers, receiving an inheritance, reviewing their superannuation or insurance, preparing for retirement, or seeking greater clarity about their financial direction.
Seeking advice earlier may provide more time to consider the available options. However, whether advice is appropriate, and what it should cover, depends on the individual’s circumstances.
Personal financial advice should be based on an understanding of your circumstances and the agreed scope of the engagement. Your adviser should explain what areas the advice covers, why each recommendation has been made, the potential benefits, risks and disadvantages, the fees and costs involved, and any important assumptions or limitations.
Before receiving personal financial advice, you can check whether the adviser is authorised and registered through the Financial Advisers Register. The register includes information about an adviser’s employment history, qualifications and the financial products they are authorised to advise on.
At Primary Wealth Management, we explain the proposed scope of advice and the fees that apply before you decide whether to proceed.
We offer an initial consultation at no cost and with no obligation to continue. This meeting allows us to discuss what you would like help with and explain our advice process. If you decide to engage us for personal financial advice, the scope of work and applicable fees will be agreed before the advice work begins. Further information is available on our fees and value page and in our Financial Services Guide.
Financial decisions often affect more than one part of your financial position. Superannuation, insurance, investments, cash flow and retirement planning may need to be considered together so that one strategy does not unintentionally work against another. This is why we approach financial modelling as an area that can be reviewed over time, rather than as a one off exercise.
Tax and estate planning issues may also be relevant. The extent to which these matters can be addressed will depend on the agreed scope of advice and the qualifications and authorisations of the professionals involved. Where specialist tax or legal advice is needed, this may involve working with an accountant, registered tax agent or solicitor.
Where an ongoing advice service is agreed, the plan can also be reviewed as circumstances, legislation, financial markets and personal goals change.
Our approach is to first understand your situation and the financial decisions you are considering. Where you proceed with personal advice, that advice will be provided by an appropriately authorised and registered financial adviser.
The aim is to provide advice that is clearly explained, practical and relevant to the agreed scope, with the aim of developing a clear, practical plan.
We offer an initial consultation at no cost and with no obligation to proceed. It is an opportunity to discuss where you currently stand, what you are working towards and whether financial advice may be appropriate for you.
A financial plan should help provide a framework for making financial decisions. It should also be reviewed when your circumstances or goals change rather than treated as a document that is prepared once and then forgotten.
Important information: this article contains general information only and does not take into account your objectives, financial situation or needs. The areas covered by personal financial advice will depend on the agreed scope of advice and the adviser’s authorisations. Before making a financial decision, consider whether the information is appropriate for you and consider obtaining personal financial advice. Taxation and legal matters may require advice from an appropriately qualified tax or legal professional.
