Why do I need a Financial Plan?
We all aspire to do better financially. Unfortunately investing for the future and achieving our financial goals or achieving a better financial position is important but never URGENT. For most people it usually takes a lower priority than their other family and work commitments.
Therefore, without a team behind you to assist in making this a priority over a long period of time, achieving your financial goals can only be a dream for most people. Statistically only 3% of the entire retiree population in Australia achieve $50,000 or more retirement income per year, so the odds are against us!
At Spark Private Wealth & Advisory we offer you a workable long term path to achieve your financial goals through budgeting, debt reduction strategies, superannuation, risk management, investing in managed funds, ongoing support and specialist advice services including SMSF property and investment model portfolios.
These form a diverse range of solutions to assist you from managing your money better, to growing and building your investments to achieve your goals throughout your working life and in retirement whilst not lowering your quality of life.
The areas of advice we cover
Budgeting is a simple activity that helps people to track their income and expenses. Successful budgeting is the key to good financial management. By understanding your day to day finances, you are able to judge whether your spending is essential or optional, and to think about ways to save as much and as regularly as you can by making a plan and setting some goals.
90% of Australians say they have the ability to budget and 57% say that is it important to learn more about how to budget day to day finances, but around half the adult population say they don’t budget regularly.*
We ensure Insurance is a very important part of any comprehensive financial plan, giving you financial protection against a range of risks like loss of property, loss of your ability to generate income and medical expenses.
There are four main types of personal insurance, to protect you in various circumstances:
− Total and permanent disability;
− Trauma (also called Critical Illness or Living Insurance); and
− Income protection (also Salary Continuance Insurance).
With its built-in tax advantages, super is a powerful vehicle for long-term wealth creation, despite growing regulatory complexity. We can help you make the most of the opportunities super has to offer, so you can enjoy the retirement lifestyle you’ve always looked forward to.
Asset allocation refers to how investors distribute their investments among various investment asset classes. Asset classes are types of investments, the main being cash, fixed interest, property and shares. Numerous studies have shown that asset allocation is a key driver of investment returns, playing a much larger role than individual investment asset selection.
Over the last two decades, no asset class has outperformed on a consistent basis. Yesterday’s winner is often tomorrow’s loser and vice versa. Your aim as an investor is not simply to get the highest possible return, but to get the right balance between risk and return for your individual risk profile. Given the dynamic market and economy nowadays, you would need to review and adjust your asset allocations to reflect all the changes and investment opportunities in the market.
Loans can be an essential part of achieving longer term goals such as buying a home, but their costs, including repayments and fees and charges, should be understood and affordable. Most Australians have loans increasing with age, peaking for people aged 30 to 44 and decline thereafter.
With loans, it’s a good idea to repay more than the minimum required and make additional or more frequent repayments whenever possible. However only 32% pay more than the minimum required on loans.* There is no better way of saving money than paying off debt early.
Through successful saving, people can learn many of the skills they will need to invest successfully, such as the ability to assess rates of interest paid, fees and charges, terms, and ease of access to different types of investments. Many people use these skills to become investors, although they may not see themselves that way.
Compared to budgeting and saving, fewer Australians are confident in their ability to invest (69%) but 70% recognise the importance of learning more about investing. When making an investment decision, only one third of investors would consider both risk and return, and only a small proportion (less than 6%) would consider other crucial factors when investing, such as industry background, diversification and tax effectiveness.*
Self-managed super funds (SMSFs) are a way of saving for your retirement and usually used by more affluent clients to build wealth.
An SMSF must be run for the sole purpose of providing retirement benefits for the members or their dependants.
If you set up a self-managed super fund (SMSF), you're in charge – you make the investment decisions for the fund and you're held responsible for complying with the super and tax laws. It's a major financial decision and you need to have the time and skills to do it, which is where Spark Advisory can help.
81% of Australians are highly confident in their ability to plan for their long term financial future but only around 60% say they have the ability to ensure enough money for retirement. Planning is the best way to achieve security in retirement, and the earlier you put your plan into action, the more choices you will have.
To achieve your retirement goals, you need the same skills they acquire in becoming successful savers and investors. 86% do not believe that the age pension will be sufficient for retirement, and 73% say employer funded superannuation will not meet their retirement needs.*
Reviewing Your Situation
All personal and economic changes in your life need to be incorporated in your financial plan. This does not mean that your financial plan should be reviewed only if you face the above changes in your life. Even if things do not change, you must review your financial plan at least once a year to analyse the position of your investments and see if this is helping you achieve your goals. Remember that merely creating a financial plan will not help you attain financial stability. Reviewing the plan regularly, making changes as required and leading a disciplined life will help you meet your goals and achieve financial stability.
*Australian Government Financial Literacy Foundation
OUR FINANCIAL PLANNING EXPERIENCE
1. SPARK MONEY ONBOARDING
You will recieve an invitation to gain access to our Wealth Portal, Spark Money and be onboarded via your dedicated consultant. This will capture your cash flow, assets & liabilites and ready you for your discovery meeting.
2. DISCOVERY MEETING
The purpose of this is to understand what you hope to achieve, together with your financial goals
3. MODELLING SCENARIOS
We prepare a number of models and strategies based on your goals and objectives, highlighting key considerations and areas we can add most value
4. STRATEGY MEETING
We meet to discuss options identified in the strategy outline then formalise the key points to take forward into your Advice document.
5. TERMS OF ENGAGEMENT
Once we have established an understanding of your goals and objectives, we will provide you with our engagement terms to commence our services.
We research your current situation, existing products and accounts.
7. PRESENT YOUR ADVICE DOCUMENT
We prepare a formal advice document which details our financial strategy and action plan
Implement the action items agreed upon in the advice document.
9. ONGOING SERVICES & FINANCIAL REVIEW
We keep you on track by meeting regularly to check on progress, and make adjustments as required.
Let’s start something together!
Complete the form below and a member of our team will be in touch.