HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
Meet the Adviser
hello everyone we have jeremy from stone group financials talking to us today
about financial advice welcome jeremy
thanks for having me kingsley appreciate it
yes jeremy tell us about what you do with your work
sure sure so i'm a partner and financial advisor at stonehouse group i actually
started at stonehouse about 12 years ago and when i started out i started in
the power planning section of the business which gave me really good insight
into the the various aspects of financial planning and and really how it came
together so in terms of what i do now i have a dual a dual focus at stonehouse
part of my role is actually helping to run the business itself we have a few
different offices in the different states and we also have a credit license and
mortgage broking too and the other part of the role is obviously is assisting
my clients and the majority of clients that i see are in the pre-retirement and
retirement phase of their life so i help them with the with the planning helping
them to gain some clarity but ultimately it's it's helping them get some peace
of mind around the situation
right yes so it's a very interesting setup that you have the advice and also the
mortgage brokering is that something when did this start
sure so it started about two or three years ago or so and really the reason why
we set it up is a value add to our clients so we were previously working with
different mortgage brokers before but it obviously would delay the advice
process by external factors so the ability to have a client in a meeting with us
and for a mortgage broker to come in and assist is really beneficial from the
client and they know that they have you know both of us looking after them
after them as well right
could you share with us what makes you wake up really excited to get into this
business
sure so i'll go back a few years first of all the reason why why i got into this
business is is growing up I had a single single mother and she had a small
business and in time i could see that there was such you know high points
and also low points you know for the business and with personal finances as
well and it really got me thinking about you know why is it that some people
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
do so well financially some people don't some people are very organized and
it could be really curious about what makes people tick financially and and
why do some people know more about it so in terms of why i wake up in the
morning it's because there are so many people that don't truly understand
their finances but not just the money side it's how it fits into the overall life
and gives them a quality a quality life so i love it when i wake up in the
morning and knowing that i'm actually impacting clients and because i've
been with the same business for a period of time when we're talking about
long-term plans with clients um you know looking back over the past i've had
the opportunity to see some of those plans come to fruition and enjoy those
moments with the clients it truly makes it feel like it's it's worthwhile and you
can see the direct impact right you're having on someone
excellent so we have a lot of changes and increase in regulations and with
farseers and adding lots of content what can you tell us about tell the
students about what they should learn beyond the textbooks clearly we have
very comprehensive sets of educational material but what are the skills and
other things that they should be mindful of to do well
okay in regards to the regulation or just broadly which other skills should they
be aware of i guess is beyond the what could be learned from techs and
universities okay so i probably feel as though you know just quickly on the
regulation side of things right the the only constant in this industry has been
changed right and that's that's a fact of life ultimately it will result in a better
outcome for the industry so essentially you know you need to be doing
obviously the right thing and understand what the legislation is but there will
always be more change right now outside of that i think what would be great
for students to understand is there's a lot more to financial planning than a
strategy you can learn in the textbook right so what was really valuable about
my own journey is because i started in power planning in the business getting
an understanding of not just the strategies but the whole financial planning
process and how the different teams in a financial planning business work
from an administration perspective to power planning to advice to compliance
and how everything how everything fits together and i think to be successful
you not only need to know what the strategy is but how a financial planning
operation actually works regardless of if you're in a big business or a small
business as well so that that's probably one the
the second one that i recommend i know it sounds very simple is is having the
ability to properly listen to clients i think it's very easy to just demonstrate a
strategy to clients without fully understanding what would they actually like
you know why are they sitting in front of you they might tell you it's for one
particular reason but it's actually your role to to build a relationship and get to
know what that person really needs and would like so a lot of the times it's
much more than the numbers on the strategy so just one quick example on
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
that is a lot of the times with retiree clients they have this whole plan mapped
out for their time and how they'll have a certain amount of money and how
they'll spend it and a lot of times in retirement they're very hesitant to spend
their money right so what's really important and i place some emphasis on
this is actually having the conversations to say you need to spend some of
this money um because for a lot of people they get to a stage whereby
something happens for a medical reason they've got all of this money and
they haven't enjoyed any of it
right so it's having some bigger conversations with clients outside of what
just a strategy yes might be so related to that one of the common problem
that i don't know how to solve and i must ask the pro here is what do you do
with the client we need to understand the clients but they may not be very
forthcoming with any information so how do you deal with that
yeah that's a very a very good question and it's a typical situation imagine if
you're new to financial planning and you study these great strategies and you
have a brand new client a client meeting and you walk in and you ask some
questions and they're very cold and very hesitant to talk about their situation
it's very common and if you're not used to that it can be very difficult and off-
putting and a lot of the times it's important to realize that the reason might
not be what you think it might not be because they just don't want to share it
with you they might not be comfortable yet so it's your role as a professional
to explain why they're there the purpose and help them to be comfortable so
what i often do in the meetings is explain to the clients that i understand this
is the first time we're meeting together and it's a big thing to talk about your
finances but today there's no decision making it's really to get a feel for who
we both are how we might be able to help and obviously at the end of the
meeting we talk about the next steps right and in order to help you as much as
possible we do need the full picture for your finances right so typically when
you actually explain the reason for why i'm asking all of these questions about
your money and your situation a lot of people tend to relax a little bit and then
open up
right right so i guess one last question the trust is and it's often said to be uh
very important well it is a very important aspect of providing financial services
especially for financial planning it's actually literally written in the first year's
learning outcomes as well what might be one or two points that you could
share with our students how to build trust or how to be trustworthy
sure sure and a lot of those those points are trustworthy and with the new
standards for for cm they they tie hand to hand and it's really important to
know what those standards actually are and the reason why is in order to
build trust what you'll need to demonstrate to the client is you are truly acting
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
in their best interest right so while it might sound simple if they're telling you
what a priority and the goal is you're giving them advice in that particular area
not something else that the client actually hasn't discussed so acting in their
best interest you know with limited conflicts removing all of the conflicts of
the advice is one area from a practical perspective not rushing the client in
other words understanding that this is a big process for someone to trust
someone i've never met before for their finances to understand that people
like to move at different paces just because it says in your process it takes
this amount of time to move to the statement of advice and then we do the
review meeting at a certain point in time to have some flexibility and if a client
needs another meeting for some financial literacy or to explain something
being willing and able to do that with your clients as opposed to rushing
through the full right process so i think when they understand that you are
there to help them you're there so they can explain it and give them the best
advice that's something that helps to build the trust
yeah excellent well jeremy thank you very much
thanks very much Kingsley appreciate it
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
Initial Meeting (Good Jeremy)
hey fiona pleasure to meet you and thanks for coming in today
hi jeremy nice to meet you as well thank you
how was your birthday on the weekend
oh it was a lot of fun actually my sisters came over and we sat outside and we
laughed so much it was great fantastic
do they does your family live nearby or are they sort of scattered around
australia
they live in on the northern beaches
okay yeah and um and you get to spend much time with them
oh we made we we have a lot of um contact uh you know just through texting
things like that we might maybe get together every couple of weeks every
three weeks or so
okay i know so far we had just a brief phone call about your situation um and
you've obviously mentioned considering retirement and the fact that you you
would like to spend a little bit more time with family if possible um is is that
the main thing that you're looking forward to you know in terms of a
retirement perspective or are you not enjoying work
at the moment um i think it's just not a bad idea to retire um when you're still
relatively fit and healthy and able to make the transition so i'm hoping that i
can fill my life i guess
sure sure well we'll certainly go into all of those areas in today's meeting so
the purpose of the meeting today is for us to get a bit of a feel for each other
um and also discuss the different options you have available and for me to
understand where you're at financially so we can start coming up with a few
different options okay for yourself how does that sound
yeah this is what i came for
great great so before we dive into your financial situation i just want to make
sure that you did have a chance to look through the financial services guide
and the privacy policy that our office emailed to you about a week ago or so
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
i know i received it but i'm pretty busy at work to be honest and i haven't had a
good look at it
okay okay sure so what what we'll do today is i've got a printed version which
i'll which i'll give you but there's a few key areas to understand in that financial
services guide so by way of an example they would include the fact that we
are licensed to give financial advice it actually outlines the areas of advice but
it also does outline two key areas such as if you did have a complaint in the
future where to to go okay and what the fees could be for the advice as well
great so obviously at the end of the meeting we'll discuss specifically that
what that looks like for your situation but please just keep in mind that it's an
important document okay to read yeah okay in in terms of finances can you
tell me a little bit about what your involvement has been with looking after
your own finances in the past such as purchasing different investments or
even looking at your own budget and expenditure
well i've been relatively involved so uh we do have an investment property and
that was something that i thought about a lot and you know it was a mutual
decision um since we've separated um i've actually taken that property myself
i must admit the super stuff i've just assumed that i've let it take care of itself
i've been pretty lazy with that um so i have a reasonable handle on things but i
think i'm going to need your help
okay sure sure and we'll certainly go into all those areas so fiona i know that
you mentioned to me that you'd like to retire and in terms of retirement for
yourself what are the key aspects that are actually important to you whether
it's from a monetary or a lifestyle perspective
first of all financially i really want to feel comfortable and be able to do the
things that i've held off doing for a long time so i would like to be able to travel
and i want to you know go to the theater and go out and things like that and i
i'm i'd like to know that that's all possible
okay sure so later on in the meeting we'll explore all of those key areas but
just as a starting point i'm wondering you know over the past few years have
you sat down before and actually looked at what does it cost you per year to
live and how much money do you actually need for some of these areas
no idea
okay okay so that will that will form part of the starting point just so we can
define you know if we're talking about your aim is to receive an ongoing
income yeah what does that actually look like okay and then we'll work
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
backwards to say how can you arrange your assets um in order to achieve
that income on a on a sustainable basis okay how does that sound to you
yeah i think that's what i need
yeah okay okay now one question that i'm just curious about is is
superannuation will obviously form a key part of your retirement along with
the other assets but from a superannuation perspective when the statement
arrives each year how much attention do you give the statement and do you
understand the different items on the on the statement
i've really tried to monitor my super and change the investment strategy and
things like that i think i've done really well okay i've got about eight hundred
thousand so i i'm curious actually whether you you think that's a good amount
or whether you know is is that going to be enough for me sure sure um but i
guess i wouldn't mind some advice around uh whether i should stay with the
fund that i'm with or whether you could recommend an alternative
sure i can certainly do that the only point in time that i'd recommend a change
if it was in your best interest to actually do so so as a starting point what we'll
actually do by the end of this meeting is start to outline what the strategy is
first yeah if you can achieve that with your current superannuation fund you
can certainly do that but if there is a need to make a change we can
recommend that too so that's part of the full process so by the end of this
meeting you'll have much clearer picture as to what it means to engage a
financial advisor what the different options are as well and also what the fees
would look like for the advice okay and the the only way that we actually move
forward with the advice is if we're clearly able to show that the value you
receive the advice is well over and above what the fees are to actually engage
your financial advisors okay okay and then after that we'll talk about what the
process is and the next steps does that sound okay
it sounds good perfect
thanks Fiona
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
Initial Meeting (Bad Jeremy)
hi fiona i'm jeremy nice to meet you
hi jeremy so fiona we we had a brief phone call i think it was a few weeks ago
um was it retired was the retirement planning that you were mentioning that
you're wanting to discuss today
yes
and and when abouts are you looking to retire
um i'm thinking in the next couple of years perhaps i haven't really decided
okay sure sure um and prior to the meeting our team actually emailed you our
financial services guide and privacy policy did you get a chance to read
through those items
no
okay um look don't worry too much about that it's it's in your email so another
point in time you can you can have a look through those documents um well
they contain a few details about you know who we are and financial advice
um but they're in your inbox anyway so feel free to take a look at them you
know when you get a chance
all right
but but just in terms of of your situation what does retirement actually look
like for you
i've got mixed feelings in a way I i'm looking forward to it in the sense that it's
going to be a more relaxed lifestyle and i can do the things that i've wanted to
do for a while that looks really nice to me on the flip side i guess i'm a little bit
concerned about how how i'm going to fund my retirement and whether i can
keep my investment property
okay look i'm sure you'll be i'm sure you'll be fine we'll be able to come up with
a way to make it work anyway right um and and do you know how much
money you need for retirement
no idea sorry
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
okay well you know you know most most people need about say fifty
thousand dollars or so so if we can organize a way to arrange your finances to
get fifty thousand dollars you should be able to retire but that's enough to go
travelling and do you eat out do you frequently go do you frequently travel is
that something you're interested in yeah
definitely i'd like to have it at least one trip a year
okay okay well look you should be able to do it but we'll we'll move on um and
we can always come back to that a little bit later now just in terms of your
own situation what's your understanding like about your superannuation
uh i've looked after it i think but i really wouldn't mind hearing from you about
whether you think it's a good fund um whether the options that i have in
invested in are the most positive things to be
okay okay so so what we'd like to look for with the superannuation fund is is
the fund that will just give you the highest highest return because obviously if
you get the highest return it'll earn you more money and give you more for
retirement does that sound good
uh well is that the most important thing
well we we'd like to make sure that you can reshoot your your goal of 50 000
which you said you need yeah uh in retirement
yeah
we we will look into a bit more detail in terms of how the investments are
positioned do you have much of an understanding about the different types of
investments
well usually what interests me is to be honest i don't i don't judge it just on the
return i actually think for example one of the options that i like is um
sustainable investment look they they they can be
okay um what's what we'll do is there's a fund that we typically use with our
clients that they get a really good result in so we'll look at that fund first and
then what we'll do is we'll see if we can find those sustainable investments for
you
oh is it an industry fund
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
um so it's not an industry fund although we can look at some of those funds
but really we just wanted to make sure you get the performance um and and
then we can look at the sustainable investing is that the most important
aspect for you
can i trust you
of course of course this is what i do on a daily basis with with my clients and
so you know what what we'll do is in the next part of this we'll talk about what
the different options are and we'll talk about what the fees are for you as well
okay and um and then we'll present what the actual advice will be based on
your situation

okay

Strategy Meeting (Good Jeremy)
so fiona thanks for telling me a little bit a little bit about your situation in terms
of when you plan to retire what you'd like to do in retirement now what we'll do
is start to discuss some of the specifics around how much money you might
actually need in retirement okay and then how you can actually organize your
assets to provide an ongoing income in retirement right okay so just as a
starting point for the conversation do you know roughly i'm not expecting an
exact figure how much money you actually spend each year or how much
money you might need in retirement

unfortunately i it's not something that i've thought about so i really need your
help i think in terms of budgeting okay sure sure so what we can what we can
do and we'll do this at the end of the meeting and it'll be collaboration
between both of us is we'll actually sit down and look at what your expenses
are over over a year and as a starting point it'll be an estimate of your
expenses now i know from our previous conversation you told me that you're
about to pay off your mortgage in the next few months so what we'll do is
we'll look at what your expenses are but then what they're likely to be in
retirement in other words we'll we'll not have the mortgage figures in there as
well right um i know you still have some personal risk insurances which you're
likely to cancel in retirement so we'll take out those expenses and get a rough
idea of what those figures actually look like okay does that sound like an okay
starting point

yeah i think so
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v


okay so what will be really important over time is for us to to track what those
expenses are because if if it looks like they're 60 000 per year your financial
plan will be based on generating 60 000 however if it looks like they're really
90 000 per year it'll have a big impact on your on your finances yeah okay so
do you feel okay after we actually implement the advice if we're in contact on
a regular basis to actually monitor those figures and then adjust your plan

if needed will that costs more

so it's all it's all included in the in the ongoing advice okay what we'll do at the
end of the meeting is i'll let you know exactly what the fees will be for the
advice okay um and how you can receive more value over and above what
those fees are

yeah well i guess it makes sense

doesn't it to continue um monitoring things and think think about it like if
you're if you're on a cruise ship and you're going from sydney and you're going
to somewhere in in america you might have a straight line as to where that
cruise ship is taking you um and if there's no captain there it will go on the
straight line but along the way there's likely to be different storms and
weather events the cruise ship will need to navigate the way to the to the end
point uh provided there's there's someone leading or a captain in the boat so
that's part of the ongoing advice journey where together we'll navigate those
changes okay would you be comfortable with that

yeah that sounds good

okay okay so from a personal perspective um i know you've told me about to
pay off your mortgage do you have any investment properties

yes i do um it's a an apartment on the beach in tamarama so it's quite a nice
little nest egg

okay and how much rent do you receive

just roughly from the investment 5 000 a month

okay sure sure and uh and what's your superannuation balance

it's close to 800 000

HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v

okay okay and fiona are you familiar with how you can access your
superannuation and how the tax works in terms of accessing funds in
retirement

i have no idea i know i could go on to a transition to retirement plan i know
that's an option but i really don't i need help with managing the tax

sure so what will what we'll do in terms of generating the income for
retirement is we'll first of all work out what is the exact figure you need in
retirement and what we'll do then is deduct off the amount of rent that you
receive yeah there's obviously expenses associated with running the property
so we need to understand the net amount you actually receive so the physical
amount in your bank account and the remaining amount we need to make
sure you can actually receive that as an ongoing income from your
superannuation okay so your superannuation fund won't need to fund your
whole income it'll obviously be half or part from the investment property and
apart from your superannuation okay fund now fiona what we'll do is make
sure that when you retire you can actually receive a monthly income you’re
your superannuation fund which is which is called actually a pension fund
when you retire okay have you have you heard what that means

um no okay oh jeremy i forgot to mention to you a really important thing that i
want to do when i retire is to set up a scholarship for disadvantaged students
so i know that's gonna i'd really like it to be a generous one okay so i'm
thinking of at least ten thousand dollars just to go to that every year okay so i
guess that's just effective

okay so we'll definitely take that into account in terms of what your
expenditure would be um now i know we're just starting these conversations
so they're broader now but they'll become more specific towards the end of
this evening and obviously once we present the advice for you so just in terms
of the income just one really important fact that we want to keep in mind is
when you're taking money out from your superannuation fund we'd like to
ensure that you don't take out too much each month right so the balance
doesn't erode over time so that's one of the key factors that we'll actually look
for as a starting point and i guess i also need to know what i should do with
the rental income how to avoid tax

sure sure so in the next step we'll cover all of those

yeah thanks


HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v

Strategy Meeting (Bad Jeremy)
so fiona now we've we've started talking about your situation in terms of
wanting to retire in the next in the next year or so what's really important to do
is to work out how much income you'd actually need in retirement and then
we can work out and see can your asset base actually support okay that
income so we know it's a realistic conversation yeah so do you know roughly
how much money you you need in retirement

i want to live comfortably so a hundred thousand a year i think

okay again you can do that um that'll be fine we can we can we can find we'll
find a way to make that that work um i mean we haven't talked about your
assets yet though so do you um you know apart from your home which you
told me that you're nearly debt-free do you have any universal properties

i've got a little house out in saint mary's it's um i rent it out and it's um it's
about 300 a week 300 a week

yeah okay yeah you you mentioned to me just briefly on the initial call that
you're finding difficult with the maintenance of it it was taking up some time
and becoming expensive is that is that right yeah
it does tend to um need a lot of maintenance that's true yeah okay and i'm
reluctant to um increase the rent because i know the family
okay look just leave it as it is okay um property will always go up anyway yeah
so you know it's a good it's a good investment um and the maintenance it's
just it's just a holding cost anyway and at least you're getting the three
hundred dollars per week yeah um and you're doing the right thing by your
friends so don't worry too much about it great i'm sure you'll be right in the
future
and do you have much much cash in terms of a cash you know emergency
reserve at the moment
no
okay well i mean what do you mean in the bank yeah in the bank account so if
something came up you know from a medical perspective or emergency a lot
of people have say a few months worth of expenses do you have anything like
that
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
yes yeah i've got uh um i think it's about thirty thousand i suppose i keep
forgetting what i've got actually here but
well let's just i mean thirty thousand sounds good enough yeah um yeah that
should be enough anyway i mean for most people it is
yeah and and and with your your super fund now i think i think you said you
had about half a million dollars or maybe it was six hundred thousand no i
didn't say that oh no sorry that was my sorry that was a client um i had last
week uh how much do you actually have in super 800 000.
yeah okay okay um i think you said you needed a hundred and ten thousand a
year for your income
no jeremy i said one hundred thousand a hundred thousand
yeah okay okay well if you're getting three hundred dollars per week from your
from your property yeah you know let's just say after the high expenses you
know you might get ten thousand dollars cash in hand so you need about
ninety thousand dollars a year from your super fund and if you took out ninety
thousand a year on your portfolio it's over ten percent of the balance um but is
your super fund doing well at the moment i'm starting to get confused i'm
sorry um what what was that so so with you with your superannuation fund
does it have good performance
uh well I i think so um i i've got it invested in um at the asian share market and
it's pretty good
yeah is that what you mean like the return yeah exactly the returns yeah it's
about 10 10 okay so what we'd like to do is to make sure that you're invested
all in shares because if you're all in shares you'll get a really good return on the
money and then you can take out enough to to live does something like that
sound like it'd be good for you
no
why do you think that well it just means that you can try to get the best
possible performance
don't you aren't supposed to worry about risk
there's that too so you know you've got a little bit of cash which is good so if
something goes wrong you can access your cash but what we'll do is just to
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
move on to the next section we'll we'll go on to talk about you know where
your money would go if something actually happened to you as well
i'm sorry i'm getting confused here
okay okay so what we'll do is we'll talk about we'll go back to the amount of
money that you need in retirement every year okay and then we'll go from
there
Statement of Advice (Good Jeremy)
so fiona you mentioned to me that in the next few months you'll actually pay
off your your home loan is that correct
yes fantastic
okay okay now in terms of other assets outside of your home i know you
mentioned just very briefly on the phone that you had an investment property
i'm just wondering how much rent do you receive from that property even if it's
just approximate for this conversation
it's 90 000 per annum
okay so you've got 90000 a year rent coming in now in terms of other assets
outside of your superannuation do you have any cash and term deposits
actually yeah i've and that's one of the questions i want to ask you about
because i've got about um 350 000 just sitting in the bank okay and as you
know the interest rate's almost nothing so i really want to know what to do
with it and then i've got the issue of um i really don't have to pay a lot of tax
okay or more tax than what i'm already paying
sure so i'm looking for some advice in that area okay sure how do you also
feel about the fact that with the cash you have it gives you a bit of a security
blanket in other words if something does happen in the markets the cash will
obviously be very stable and you've got access to that money how do you feel
about that
well i i know that's important but I guess what i'm unsure about is how much
is a good buffer because it seems to me 350 is enough to actually do
something with it but i don't know what
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
okay okay um and would you like to be able to retain access to some of that
money in other words if something happens to have access quickly as
opposed to i think that's really neat
yeah sure sure i'd agree with you as well i mean you've already got the
property if you look lock the funds away uh elsewhere and you've got two
assets that if you need the money will take a long time potentially to sell it
could be an issue
yeah okay um and what's your superannuation balance at the moment
the the super is 850 000. 800 000.
Okay so what i'll do is i'll i'll let you know what one of the strategies could look
like now obviously this is the first time that we're meeting each other so we're
going into some of the details now and this will be a bit of a general overview
and what will actually happen is at the end of the meeting we'll have collected
all of your information and the next time we sit down i'll present you exactly
what the strategy would look like but as a as a starting point are you aware
that superannuation in retirement is completely tax-free based on your
situation
no i i thought i had to pay tax on that
so in in retirement yes superannuation fund is completely tax-free okay so all
the investment earnings and the monthly income you could take and so just to
confirm i understand you mentioned that you don't want to pay too much tax
yeah and you're also concerned about the interest that you earn in your bank
account
that's right that's right
yeah okay so what's actually possible because you're under the age of 65 is to
contribute funds to superannuation before you retire so you can get them into
a tax haven now ordinarily you can put in a hundred thousand dollars a year
oh i see into super okay um but i know you've told me you've got 350
thousand dollars so one possible option is and obviously i'll confirm in writing
for the exact recommendation okay would be to use what's called the bring
forward rule right all it means is you can use three years worth of those
contributions at the one time in other words instead of just putting one 100
000 in you can actually put in a lump sum of 300 000 but nothing for the next
three years
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
oh that's interesting gee i didn't know about that
yeah so what it means is i know you'll be retiring in the short term and after
the age of 65 it's not possible to actually do it oh so before you retire okay you
can transfer as much as possible into superannuation in the tax-free
environment so what it means is and then after 65 um after 65 you can no
longer make that type of contribution if you are working you can make another
type of contribution but for the moment we'll just explore what this strategy is
for you okay um but fiona what's what's important to keep in mind is just
because the funds are in superannuation doesn't mean they need to be fully
invested so you're going from a situation whereby you've had 350 000 in cash
if you put in 300 000 to your super fund all in shares that's a lot of risk to take
on so what we need to explore is what's actually appropriate in terms of
investing and investing those funds okay so we don't completely change okay
what your risk profile is yeah and by the way because of being able to retire
you'll actually have full access to those funds as well so they'll be in a
situation where they're tax-free and there'll be other opportunities for those
funds oh that sounds like does this does that sound like they could meet your
needs absolutely and just before we move on to the other strategy which
we've discussed before could you just repeat back to me what you think
would be the main benefits of that type of strategy of moving the money that's
in the bank to the super
um well it would mean that there'd be more return on it is that what you said
so for the moment let's put the returns aside
okay because once it's in the fund if it's appropriate you can stay in cash right
or you can invest oh i see um but what will actually occur is once the funds
are in sight of superannuation there'll be no tax to pay anymore right so it's
the tax benefit so it's it's the tax side of it and you have full access to the
funds okay so we haven't locked away your funds as well
okay yeah i get it yeah thank you definitely perfect
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
Statement of Advice (Bad Jeremy)
so fiona so far that you mentioned that you are looking to retire in about six
months or so and what we'll do now is i'll ask you a few questions about your
personal fan financial situation and we'll talk about some options
okay does that sound okay
good okay so just to confirm you mentioned on the phone call to me that you
had nearly paid off your mortgage on your home is that correct
yes
great great um now in terms of the other assets you have aside from your
personal place of residence do you have an investment property
i do and the return on that is about 90 000 per annum okay okay and uh and
when i say return it i mean the rent that i get from the rent okay and do you
have any cash or term deposits
yes actually jeremy i need some advice about this because i've got about 300
000 just sitting in the bank and i'm curious what you think about that whether i
could be doing something better with it okay okay at the same time i'm a little
bit worried about the tax implications
okay sure sure and and how do you feel about the the fact that the funds are
very stable versus if you were to invest those phones they could fluctuate
both up and down
um well i i i just get the sense that interest rates are so low at the moment it
seems like a lot of money just to be sitting in the bank it's a bit of a wasted
opportunity yeah don't you think that there's something i could be doing with it
look there's something that i've got in mind it worked well for one of the
clients I saw last week um and it could probably work well for you too we'll
come back to that in a minute but how much do you have in your
superannuation fund
uh about eight hundred thousand eight hundred thousand
okay but the main thing that you'd like to do is make use of the of the funds
that you have in cash
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
uh well i i know it's important to have some money that's accessible but i do
really want to explore ways of making that amount work
okay so what we'll do is we've got a really great share portfolio that we can
actually invest those funds in for you and and the reason why it's really good
is over the past five years or so it's been achieving a return of about 17 per
annum which is much higher than your cash and term deposits would you like
that type of return
well i guess it sounds good but um i'm so you're saying i should invest in
shares
yeah so if you if you put the money in shares because it's had the good
returns for the past five years it'll probably have good returns for the next five
years and 17 is obviously a lot higher than you know 1.5 percent in your bank
account or one percent
that sounds a little bit risky to me
well they're they're high quality the high quality shares so it means that you
know we'll probably select about five shares or so so it's really well diversified
in australian in australian shares and you know if you need the money you can
always just sell the shares does that sound okay
i'm really unsure about it i don't know i mean you're the financial advisor i i
guess you think it's a good idea
well i think it's a good idea and my clients last week really liked it and i've had
some good feedback from other clients too so we'll organize a proposal
based on that but actually do you need to keep any money in cash for
emergencies or is that not really important for you
i think i should i think i need some money that's um accessible and secure i'm
i'm just a little bit you've you've sort of thrown something at me with the share
option i i'm just i need to think about that
okay just keep in mind you know i wouldn't worry about having too much
money in cash because with the shares you can sell them either up or down
you can sell them at any point in time and you can always just get the money
back
but i know i don't the share market's volatile you know maybe i'll lose
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
look you'll like you you could but the five years last five years has been good
but in any case what we'll do is i'll put the advice in writing for the portfolio
and um and we can obviously discuss it a bit more detail in the next in the
next meeting so that will be yeah i think you'll see how much of a great idea it
is at that point in time
okay
Annual Progress Meeting (Good Jeremy)
hey fiona good to see you have you been oh look i'm so happy retired it's really
made a difference so much more energy and life's good fantastic now
i know you told me you wanted to do these piano lessons for a long time but
you never had a chance have you been doing them
they're not going that well i'm my my fingers are just so stiff i don't know but i
guess i'm enjoying it
good i'm glad to hear and you'll have all the time to work out how to do more
or find something you like doing yeah but today um i've got a bit of an agenda
in terms of what we'll discuss in today's meeting right but before i start that
i'm just wondering if there's anything in particular that you'd like to add to
there is jeremy actually um look i'm really worried about the this trade war i
mean it might sound a little bit crazy but this a u.s china trade war because
my friends are telling me that the share market is about to crash and it does
concern me because as you know the my super is really important so i need
some help with that i don't know what to do
definitely definitely so fiona before we go into the specifics of the stock
market do you remember how your funds are actually invested with your
superannuation what's your recollection like
well i've really just followed your advice i think and um as far as i know it's
relatively well balanced in in the sense that it's not all in one option but maybe
you could can you remind me what's
definitely definitely so every type of investment can go up or go down by a
certain amount and some investments are a lot safer than others so what you
mentioned to me in the first meeting was that it's really important for you to
make sure that you can receive your your income you're reaching about four
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
thousand dollars per month from your portfolio that you can continue that
income and you can also preserve your capital over time because you
mentioned wanting to pass it down to two children do you remember those
conversations
yes
yeah fantastic so what we actually discussed was if you're looking to do that
you only need to achieve a return of about four and a half percent per annum
to recoup those pension payments now because of that we didn't need to take
a high risk approach to your portfolio because your personal goal is about
four and a half percent now if you told me you needed to take out ten percent
piranha we'd be having a very different conversation right now because
obviously the investments would need to earn you 10 and take on a lot more
risk but because you didn't need to take a lot of risk in the portfolio and only
achieve about a 4.5 percent return what we've actually done is we've
structured your portfolio so about 50 of the fund is in cash and fixed interest
and term deposits and 50 of the funds would be in Australian shares and
international shares so the first thing to keep in mind is of of your portfolio not
all of it is actually invested in the stock market so there's about 50 percent
where the rate of return will be low but that will help to keep you very steady
now the other thing to keep in mind is the four thousand dollars a month that
you're taking out we've actually instructed the superannuation fund to initially
only take it from that very conservative area of the cash and fixed interest so
when you see the stock market moving up and down just keep in mind that
you're not selling those assets every single month to fund your income
payments okay so does that give you any comfort just to start off with

i think so i'm just wondering if i wanted to increase the return so for example i
wanted to get more from the super what would i have to do
okay so in order to achieve a higher return that 50 in the cash and fixed
interest we need to move some of that to the share options okay but what we
need to do before making that type of change is to ensure you're comfortable
with both the ups and downs and the stock market
what's your advice
i mean i think given so the advice should be tailored to what your needs needs
are you're not worried about the stock market
no and the reason why is fiona if you needed to start selling those assets you
lock in a loss the moment you sell okay if you actually have a longer term time
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
frame it gives those assets a chance to recover back over time because you
don't need to sell them
but how can you be sure
how can i be sure so what we can do is if we look back historically the stock
market or the property market it always follows a cycle of a really good time
and a really bad time and a really good time no one has a crystal ball to be
able to tell you when those exact times are but those cycles do repeat
themselves now i can be a hundred percent confident if we know that you
actually have the time frame to ride out the storm and i'm confident of that
because you've actually got a half of the portfolio in conservative assets
where you're taking your income from so you're not selling assets on a regular
basis
okay i feel better now
Annual Progress Meeting (Bad Jeremy)
hey fiona nice to see you again how have you been
hi jeremy i'm good i'm great actually
i know you've been retired for about what six six or seven months now
yeah that's right what's it actually been like for you it's been an adjustment um
i've found it a little bit of a struggle to find things to do but people tell me that
it is it takes a while so it's not okay a new phase of life new journey um now so
what we're going to talk about today um will be around your your income
you're receiving or did you want to talk about anything
yeah i do actually oh um I am a little bit worried about the um the stock
market i i've been watching the news i think things seem to be very unstable
at the moment there's people are saying that it's about to crash and i i worry
about my super
so the the the thing is fiona if we look at your your super fund i'm really
confident you know it should be okay for the next two years or so the good
returns will they'll keep going
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
how do you know jeremy
so all we'll do is we'll look back at history in terms of how long these these
returns will last for and um we'll do some analysis and there's a good chance
it'll last for two years
but that's not what i'm hearing it's
actually i quite different to what i'm hearing well i'd probably just i'd probably
just switch off switch off from it um you know the best thing is don't worry too
much too much about it i mean it doesn't even matter that much if your fund
goes down by 20 you know you've got an investment property and you've got
some cash outside of super so you'll be okay don't you think
well i've got a friend who who um is much more careful with her super she's
monitors where what's it invested in and um wouldn't it be more sensible to
shift the options
well i think what we should do is i know you're telling me these concerns but
maybe if we just wait another year or so i know we only speak every year or so
anyway but if we just wait till next time and maybe let's just see how it's doing
but jeremy what am i paying you for
yeah so we're obviously doing ongoing investment management for your fund
as well so we'll we'll take care of it um what you'll make decisions well i would
need to contact you first so maybe maybe if there's something that comes up
i can just i can just let you know would that be good
oh um my goodness it it's just leaving me insecure to be honest i i is that how
things work
well look what i'll do is i'll take a look at it when you leave and i'll come up with
a bit of an idea a bit of a plan but one thing i just wanted to flag for you is
obviously within your fund you've got some cash and term deposits and fixed
interest now if the market goes down a lot it might be really good idea just to
move that cash and fixed interest and just buy some more shares and it would
mean your fund is 100 percent shares but there could be some good
opportunities how do you feel about it
so you mean like there is a crash share shares go down in price that's a good
time to buy them is that what you're saying
HD EDU
Reference: https://www.youtube.com/playlist?list=PL7L-54wsCwBVIL-_gFVL4Wchv3kTwlf5v
yeah and it would mean that your fund is a lot more riskier for the long term
but i think you'd get some good performance if you do that based on what so
the shares have been good in the past um and you know you seem to be i
know you're a little bit concerned but you seem to be okay if it moves up and
down a little bit so if you're moving into more shares in the long run you could
probably do better how about we do that
well i'm really dependent on you because i don't know much about this okay
so i'm not quite sure if i'm if i'm thinking we should go this way or or maybe
there's another way we could go um but just leave it with me i'll i'll get back to
you maybe in a few weeks a few weeks or so and um we'll go from there okay