Financial PlannersInvestment PlanningNews Fears that Stop Would-Be Property Investors

Fears that Stop Would-Be Property Investors in their Tracks

Perth financial planners are often asked to oversee real estate portfolios for those who decide to use real estate as an investment strategy. As with any investment vehicle, real estate isn’t for everyone. In addition, we are not allowed to provide advice in this blog because everyone’s financial situation is different. However, we would like to tell you about four fears that often keep people from including real estate in their investment portfolios.

Fear of Paying Too Much

The axiom “buy low, sell high” has probably been around for as long as people have bought and sold things. Some people get so bogged down in research that they can’t make a decision to buy any particular property. Research is important, but so is action.*

Fear of Buying the Wrong Property

People are also afraid of buying the wrong property. This could be the wrong house or the wrong neighbourhood. This can often be overcome by creating a firm plan and sticking to it.*

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Financial PlannersInsurance ProtectionNews Financial Planning For The Self-employed

A Checklist for the Self-Employed

We like to think that financial planning is important to everyone in Perth, and that includes the self-employed. We know that many self-employed people tend to neglect financial planning services because they are always busy and don’t have the time. We visited the ASIC website called MoneySmart and found some information that can be helpful to the self-employed.

This information is general and is not a substitute for individual advice, but we thought it might be helpful for the self-employed to see what ASIC has to say about self-employed people and money.

Managing Cash Flow

Those who are self-employed tend to make a good living and earn a strong income. However, that income doesn’t always come in on a regular basis. For some, it can be months between pay periods. ASIC stresses that it is important for the self-employed to manage their cash flow properly to ensure that they have income during long gaps between “paydays.”*

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NewsSuperannuation Fund How Managed Funds Work

How Managed Funds Work

Many Perth financial planners like managed funds because they offer diversification. They are a large part of many investment strategies. At Approved Financial Planners, we recommend any of a number of investments, using criteria such as your risk tolerance and financial goals as determining factors.

In another of a continuing series of posts in which we provide basic information for investors in accordance with ASIC and their MoneySmart website, we would like to demonstrate for you how ASIC views managed funds. Remember that we don’t give any specific advice on this blog, nor should anything in this piece be interpreted as individual advice.

What are Managed Funds?

Managed funds fall under the category of “managed investment schemes.” Your money is placed into a fund with that of other investors. An investment manager uses those funds to make investments on your behalf. This usually involves buying and/or selling shares and/or other assets.*

The funds usually yield periodic income, called “distributions.” The value of your investment is linked to that of the underlying assets. The investment manager is often referred to as the “responsible entity” or “fund manager.”*

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Financial PlannersNews What Falling Oil Prices Could Mean for You

What Falling Oil Prices Could Mean for You

At the beginning of the year, most of us reassess where we are in life and make resolutions. This is especially true when it comes to financial planning. Financial planners in Perth are quite busy at this time of year, helping our clients reassess and re-calibrate their goals.

This year, many of the questions revolve around falling oil prices: how long they will last and how they will affect our economy. We recently found a piece in the Sydney Morning Herald that contained a nice summary of current information along with quotes from some respected economists.

The Fall in Oil Prices: How Big is It?

On 19 June 2014, the price of oil was $115 USD per barrel. As of 13 January 2015, the price has fallen to $47.43 USD per barrel. Consequently, Societe Generale and Goldman Sachs have both lowered their oil price forecasts.*

When oil prices fell in the 1980’s and 1990’s, there was a rise in the US economy. This resulted in a corresponding rise in both the global and Australian economies. This has caused many fund managers to predict rising share prices for the latter portion of 2015.*

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Mortgage BrokingNews Obtaining Debt Consolidation Loan In Perth

The Basics of Debt Consolidation Loans

A lot of financial advisers in the Perth area advise their clients to obtain debt consolidation loans. They can be a wise or unwise strategy, depending upon your individual financial situation. We are always sure to let our readers know that we can’t give specific, individual financial advice on a blog, but we can give general information.

What ASIC Says about Refinancing

ASIC says that it can sometimes be a good idea to consolidate loans, but only if the new loan results in the borrower paying less money in fees and interest. ASIC recommends that refinancing only be done if it is the best option.*

Contact the Current Credit Provider

ASIC recommends contacting current credit providers if you are having trouble making any payments. They can often work with you to come to a new arrangement.*

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Financial PlannersNews Navigating the Loan Marketplace

Navigating the Loan Marketplace

When we are providing our clients with financial planning services from our Perth office, one of the more important aspects is the ability to borrow money for a home, a car or other needs. This piece is one in a series we are doing where we give you a shortened, easy to read version of what ASIC has to say about various aspects of household finance.

All information provided here is general and compliant with ASIC regulations.

Can You Afford to Borrow?

ASIC advocates making sure that you can afford repayments before taking out any loan and they recommend the following questions.*

What am I Borrowing This Money For?

Is it to pay bills or debt? Is it to help friends or family? Is it something you really need or is it something you just want?*

Is Borrowing the Best Choice?

Do you have any option that doesn’t involve borrowing? Can you save for the item and pay cash? Can you put it on layaway and pay it off later?*

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NewsRetirement Planning Retirement Planning In Perth Made Easy

Retirement Planning in Perth, Made Easy

We provide retirement planning to many of our Perth clients. We have found that a lot of people have no idea what it entails. While we can’t give any specific advice on this blog, we thought it would be nice to give some basic information on retirement planning. Here are the basics of retirement planning, courtesy of ASIC’s MoneySmart website.

Taking Control of Your Finances

ASIC recommends a three-pronged approach to retirement planning: take control of your finances, create a viable, long-term financial plan and find suitable vehicles for growing your retirement income.*

ASIC provides a booklet that tells you where you may withdraw your super, investment options and income stream choices for retirement, pros and cons of a lump sum versus an income stream, pros and cons of transitioning into a pension stream and where to obtain professional financial advice.*

After you know these facts, ASIC recommends that you find out exactly where you stand financially. This includes knowing your assets, where and when you can access your super, when you can apply for age pension and whether or not you are likely to pass eligibility tests.*

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Financial PlannersInsurance ProtectionNews Basics Of Life Insurance

Life Insurance 101: The Basics

One of the crucial aspects of financial planning is ensuring that clients have the proper wealth protection or life insurance products. We have helped numerous clients in the Perth area become secure in the knowledge that if the unthinkable happens, they and their families are protected.

We wanted to provide a short overview of life insurance products. This one comes from a Government source. We hope it is helpful.

Why Life Insurance?

Life insurance is designed to help protect you and your family in case of death, dismemberment, disability or even loss of employment. When a breadwinner becomes unable to work, life insurance can step in and replace their income. There are different types of life insurance to provide coverage for different situations*

Life Cover

Life cover is also known as death cover or long term life insurance. This pays a set amount in the event of your death. The payment goes to whoever you name as your beneficiary. This may be more than one person.*

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Mortgage BrokingNews Consumer Credit Regulation

Consumer Credit Regulation

Besides financial planning, we also offer mortgage broking from our location in the Perth area. One of the first things that is done in the process of applying for any loan is to run a credit check. This credit report is an important part of determining whether or not you are able to obtain the financing you need for a home loan.

Unfortunately, some people don’t know their full rights under the National Credit Act and fall prey to predatory tactics. Courtesy of the ASIC’s MoneySmart website, we would like to remind you of some basic rights and safeguards that are designed to help consumers know exactly what they are getting into.

Obligations of Credit Providers

The National Credit Act establishes rules to help protect consumers from fraud. Everyone who wants to lease, provide or broker a loan must register with ASIC or work for someone who is registered.*

According to the National Credit Act, no credit provider may enter into any agreement with you that the Government would classify as “unsuitable.” This includes any contract that doesn’t meet your objectives or requirements. It also includes any loan which would inflict hardship upon you while trying to repay it.*

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NewsSuperannuation Fund Basics of Superannuation

The Basics of Superannuation

At Approved Financial Planners, we provide superannuation and self managed superannuation advice to our clients in the Perth area. We would like to present a short beginner’s guide to understanding superannuation. We have gone to the Government’s website,, to gather some basic information that you may find helpful in understanding superannuation.*

What is Superannuation?

Superannuation is a process in which your employer currently pays 9.5% of your salary into a fund earmarked for your retirement. By 2025, this contribution would have increased to 12%. You are allowed to pay your own money into your super fund account to increase the fund. Money gained from super fund investments is usually taxed at a lower rate than the same investments made outside of your super.*

Choosing a Super Fund

Your money is usually invested into a super fund of your choosing. However, some employers decide where your funds will be invested. If you want to decide where your super fund will be invested, you must fill out a form from the Australian Taxation Office (ATO). It is called a “Standard Choice Form.”*

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