News

When our financial planning professionals talk to people in our Perth office, we occasionally talk to people who have the opinion that “financial planning is only for rich people.” At Approved Financial Planners, we have the backing of our parent company, AMP Capital. Here is what they have to say about how financial advice can be helpful to you, no matter where you are on the financial ladder.*

Helping You Attain Your Financial Goals

No matter where you are on the “ladder,” your financial goals are going to be unique. Whether you are planning your retirement or just trying to take your current situation to the next level, you can find help from Approved Financial Planners. A financial adviser can function as another set of eyes and help give you a different perspective on your individual financial situation and what you need to do to achieve your goals.*

Why Advice Can Be Helpful

A financial planner can be like your own, personal “money coach.” They have access to information and expertise that can help you figure out where you want to go and how to get there. It’s never too early to start; the faster you start, the faster it is possible to attain your goals.*

According to a recent survey by the Australian Psychological Society, financial stress was the leading cause of stress among Australians in 2014. Approved Financial Planners in Perth is aware of how financial stress can affect families and we are here to help you alleviate that stress.*

By the Numbers

Stress can not only affect your mental health, but your physical health, too. Seven out of ten who responded to the survey said that their current levels of stress were affecting their physical health. One out of five reported that impact to be from strong to very strong.*

49% reported personal financial issues as a source of stress in 2014, compared to 52% in 2013. However, this is not a trend, as 48% reported financial stress in 2012 and 53% reported financial stress in 2011, the first year of the survey.*

Financial advisors in Perth and across Australia are working even harder lately, thanks to the Australian Prudential Regulation Authority (APRA). In December 2014, the APRA announced that measures would be implemented to decrease the ratio of investment property home loans to owner-occupier home loans. *

The response for many lenders has been to make the standards for investment property home loans tougher, using tougher income tests and lower loan to valuation ratios. In addition, even though the Reserve Bank of Australia (RBA) cash interest rate is at an all time record low, most major banks are raising the interest rate for home loans on investment properties.*

Dr Shane Oliver, Chief Economist and Head of Investment Strategy for our parent company, AMP Capital, recently gave his opinion on what this means for the property markets and for small property investors. Here are some of the highlights.*

Any Perth financial planner can tell you that it’s never too early to start saving money, but we are serious about it. We believe that children should be taught good financial habits as early as possible. MoneySmart, the website of the Australian Securities & Investments Commission (ASIC), agrees with us.

Recently, we spent some time on the ASIC website and looked at an article called “Teaching Kids About Money.” According to ASIC, it is more important to teach kids about money now than in any previous generation. They believe that teaching kids about money will help them make better decisions as adults.

Budgeting, Spending and Saving: Crucial Skills

ASIC recommends teaching children how to budget, spend and save money as early as possible. They see it as a vital part of a child’s development. They have a video on the website called “Teaching kids how to budget to become financially savvy.” We recommend this video to children. Not only does it do exactly what it says, it also tells children about two MoneySmart apps: Budget Planner and TrackMySpend.