The Seven Deadly Sins
of Personal Financial Planning
Presented by Matt Kallis Authorised Representative No. 283155
The Seven Deadly Sins
• What are the impediments to financial independence? • How do we overcome them?
SIN #1: Not Having a Plan
• No-one plans to fail, they only fail to plan • Identify your goal • Follow a strategic plan • Recognise the value of advice
SIN #2: Not Reviewing your Plan
• • • • • • Your plan is not static Changes to personal circumstances Changes to financial circumstances Changes to legislation Changes to financial markets Review maintains relevance
SIN #3: Underinsurance
• Insurance is the safety net for your financial plan • Consider the effect on your family’s financial situation if you were to become ill, incapacitated or die • Term Life, TPD, Income Protection, Trauma
SIN #4: Underdiversification
• Never put all your eggs in one basket • Relying on one asset class (property, shares) dramatically increases risk and can jeopardise long term plans • Diversification among all asset classes decreases risk and volatility
SIN #5: Misunderstanding super • • • • Super is not widely understood Primary retirement savings vehicle Harness the tax benefits Super choice and consolidation
Income Individual Company tax rate Trust
Superannuation - accumulation - pension
Capital gain 23.25% - 46.5% 30.0% 0% to 46.5% 10.00% – 15.00% 0%
46.5% 30.0% 0% to 46.5% 15.0% 0%
SIN #6: Financial myopia
• • • • • Short term focus = disappointment Never chase returns Investing is a long term process Understand financial markets Time in the market, not market timing
All Ordinaries 1935 – 2004
SIN #7: Inactivity
• Call to action • START TODAY! • Easy starting point: Everyone has superannuation, everyone needs insurance
Summary
• • • • • • • SIN SIN SIN SIN SIN SIN SIN #1: #2: #3: #4: #5: #6: #7: Not having a plan Not reviewing your plan Underinsurance Underdiversification Misunderstanding super Financial myopia Inactivity
Our Firm
Induction Strategic Management
4People Genesys Wealth Advisers
Wealth & Asset Protection
Investment
UK Pension Transfers
Important Information
This presentation has been prepared by Genesys Wealth Advisers Limited ABN 20 060 778 216, Australian Financial Services Licence Number 232686 and principal member of the FPA. Any advice contained in this presentation is general advice only and does not take into consideration the participants personal circumstances. To avoid making a decision not appropriate to you the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances. Any reference to the participants actual circumstances is entirely coincidental. When considering a financial product please consider the Product Disclosure Statement. Genesys and its representatives receive fees and brokerage from the provision of financial advice or placement of financial products.