Page 98 - Smart Money

Chapter 4

Key Point

A lot of people reach a point where they know they need a will, but they
put it off till next year. They know they should take more care or interest

in their super, but they put it off till next year. If you’ve got kids, or you’ve
got debt, you should really consider your insurance. Don’t put it off till
next year. That is really when you should sit down, make it as painless
as possible for yourself, and speak to someone and let them assist you.
Handle it all in one dealing, one appointment or one series of meetings,
and then you can move forward with peace of mind, knowing that all
of those situations are covered from a financial perspective, regardless

of what happens.

There are hundreds and thousands of planners out there offering different
things. Your standard statement of advice fee can be anywhere from $800
to $8,000. It depends on what you want addressed, the complexity of
your needs and how in depth you want the advisor to go. In terms of value,
somewhere in the realm of $1,000 to $4,000 should cover everything
that you are trying to do, within reason.

An insurance-only situation, where you are just addressing your insurance
needs, is generally cost-free, but the advisor will receive a commission.
The commission is paid by the insurer, not you, but if the advice you
receive is purely insurance advice, it will be reasonably limited. It will
hopefully cover that specific area with some complexity, but it is not
going to cover your super, cash flow and other things. In terms of value,
if you get great advice on day one, that’s terrific. The value flows over the
years that follow, an extra couple of percent in terms of returns, be they
investment or super, and hundreds of thousands of dollars over decades.

Minimising tax legally can add value, and it’s often overlooked. People
look to reduce their tax but they miss out on fairly simple strategies that
can give them a tax benefit year on year. There are also other things for
older people, including Centrelink assistance, maximising your aged
pension, minimising your tax in retirement, prolonging the longevity of
your investment portfolio, catering to estate planning so that you have