The year is winding up and it’s an excellent time to look back at 2021, take stock and see where we are headed into the New Year! Reflection and planning are key when you are trying to kick your financial goals.
I thought it would be an ideal time to discuss the main issues and concerns my clients faced and how I’ve helped them to get on-track during the year. It’s also a great time to catch you up on what has been happening in the Orange Financial Planning World and what is ahead for us in 2022.
Key Pressure Points in 2021
We all know that our needs and concerns vary depending on our life stage and current financial situation. This ultimately determines the type of advice required. You can read all the money tips and self-help financial books you like, but unfortunately there is no magic financial success recipe. There is never one lot of stock standard advice that will help everyone. Never before has this been more evident than in the past year.
That being said… there are key pressure points people can face at certain life stages within certain economic environments. Read on for the main reoccurring themes that emerged for my clients in 2021.
Top 3 pressure points for younger to middle-aged clients…
#1. Super consolidation – Consolidating multiple superfunds into one helps reduce paying double or more administration fees per year. Research the different options available to you ranging from Industry Funds, Retail Funds, eWrap accounts and Self-Managed Super Funds. It is more than worth exploring your options in relation to super and getting a better understanding of how each type of fund can benefit you.
#2. Ensuring adequate personal insurance cover – In these life stages, most people are entering debt to buy a home to live in, a new car or other personal items. They may also be feeling the impact of life changes such as having a family, getting a promotion, changing their occupation, or starting to invest in properties, shares or managed funds. As you can see – life changes all the time! Your personal insurance should reflect where you are currently at and ensure your insurance cover amounts reflect your current debt/income levels.
#3. Budgeting for saving or debt reduction – The need for advice in relation to budgeting for a saving plan or reducing personal debts varies quite a lot depending on what final outcome is required. By understanding how to control your money better, you can look at ways to ensure your hard-earned money works harder for you. This may mean getting enough money to purchase something (like a home, a holiday or a car) or paying out those high interest rate loans like a personal loan or credit cards. Having an established plan of how long it will take to get the desired result gives you hope and something to follow. I often say, “a goal without a plan is just a wish”.
Top 3 pressure points for middle-aged to over 60’s clients…
#1. Making the right investment choices – Looking at the next steps to investing is key in the middle-aged to over 60’s range. Many have some equity in their home and either want to buy a few investment properties, pick up some shares, start a managed fund for themselves, or help the kids out. Investment beliefs vary widely and are usually guided by previous knowledge. I always tell my clients that no one way is better than the other. Each option has positives and negatives that need a deeper conversation.
#2. Tax reduction – One of the key things I do with clients in this stage of life is reviewing ways to help reduce their tax bill per year. Normally the family income can be at the highest with both parents working again. Putting strategies in place to help put some of your tax dollars to better use can be a win/win. Looking at salary sacrifice into super and what investment loans can be tax deductable can be helpful along with reviewing different ways income can be received.
#3. Retirement planning – This can begin at age 60 by using the benefits of transition to retirement to help either fast track with reducing your debts, supplementing to income when your working hours are reduced or helping reduce your tax bill with cashflow management. This is one of the highest growth areas in my consulting. It is one of the most compliant areas of advice. It is essential to work out if you have enough cashflow to retire, will you be debt free by then, and what options do you have to make your retirement plans better.
Our strategy for building financial success at Orange Financial Planning…
Probably one of the most successful things we do here at Orange Financial Planning is take the time to educate our clients with a variety of different options that could work for them. This is a key difference in our strategy and ultimately fundamental to building your financial success. Getting joint input into the decision making is essential to ensuring your financial plans work.
All you have to do is read our wonderful Google reviews, which show we value everyone’s needs equally in the process. We are passionate about what we do and about establishing great long-term relationships with our clients.
This is the main reason that I chose to do Financial Planning all those years ago. I truly am all about helping people as much as I can in a variety of ways. My aim is to hopefully leave clients with a positive life changing experience. Often – clients leave with a sense of relief that they are now moving in the right direction.
The secret of our business success!
Here at Orange Financial Planning, we believe 2021 was an intrinsic learning and evaluating opportunity for many. We have been flat out in the last few months meeting with and actioning plans with likeminded people in the Central West who have taken the opportunity during the past year to evaluate their lives, visualise their goals and now take steps towards achieving financially.
The end of year is a great opportunity for us as a business to evaluate our wins also. Here are some of the secrets to our success in 2021…
- Consolidating business relationships… The success of our business to date has been built not only on our client relationships and referrals but also the relationships we have formed in our region with local accountants, solicitors, mining companies, real estate agents and mortgage brokers with joint client sharing happening on many occasions. 2021 provided some ideal opportunities to further cement these key relationships.
- Strong alliances… Having strong associations within the industry has proven advantageous throughout 2021. My licensee, Synchron, is the biggest independently owned licensee in Australia. This alliance allows me to use a variety of quality super and insurance products for my clients.
- Industry support… 2021 saw new ground forged for Orange Financial Planning. We are now a local industry advisor for both Aware Super and Sunsuper allowing me to look after a much wider industry sector than ever before. This year also saw me specialise in giving advice to people working in the mining sector. I had the pleasure of being chosen to be the Financial Planner for one of the main mining contractors in town.
We are very grateful with the support of everyone throughout the regions we operate. We cannot thank everyone for what they continue to do to make us what we are today.
Prepare now for 2022!
So next year 2022… what will be happening in the world? What do I think people need to focus on and how can we help at Orange Financial Planning?
There is much chatter about interest and inflation rates going up – the real question is when. How will this affect the housing market, government spending, business growth and the everyday consumers lifestyle?
I am not an economist and will leave these topics to the experts. What we need to focus on as individuals is – how do we make changes in our life?
Over the Christmas and New year break, have a think about what direction you want to take in 2022. Use the notion of onward, upward and forward. I always say, “knowledge is power and by getting a better understanding of the topic of interest or concern, you will make a better-informed decision, than not know and making no decision at all or possibly the wrong one”.
Come and see us to get the ball rolling, stop putting off what you may feel is not important “at the moment” when in fact it can be life changing. Believe me – you will wish you had done this sooner!
Take the time out of your life to work on a plan for you and your family. Reap the rewards now and later in life.
For more great financial advice from Orange Financial Planning check out the blogs below…
I really look forward to meeting you all and becoming the professional contact you come to with guidance through the maze of life.
Merry Christmas and happy New Year!
Mitchell Advice Pty Ltd ABN 44 625 356 872 t/as Orange Financial Planning is a Corporate Authorised Representative of Synchron AFS License No 243313. Unless specifically indicated, the information contained is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek personal advice from a financial adviser.
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