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We have provided financial services in Perth for nine years. In that time, we have built a track record based on honesty, integrity and results. When we get to know a client through an introductory consultation, one of the things we start out with is asking if they have done any investing yet.

Sometimes, we hear stories about how they got “advice” online or from well-meaning friends and it didn’t work out. We also hear stories about how they were “sold a bill of goods” by various financial advisors who provided “advice” that was just a cleverly-disguised sales pitch and was in their own self-interest.

Recently, a study led by Susan Thorp, Professor of Finance and Superannuation at the University of Technology, Sydney, indicated that financial advisors who give solid advice on the first issue are usually trusted, even if their later advice turns out to be bad. The study goes on to mention that there is potential for abuse by unscrupulous advisers who manipulate the process by providing easy, obvious advice to gain a client’s trust.*

Ms Thorp goes on to concluded that consumers “need more assistance in choosing advisers.” She also advocates tougher tests for certification as a financial advisor. Those who are interested in the full report can click the link at the bottom of the page.*

As the baby boomer generation ages, retirement planning is becoming a common expression around Perth. Some started planning early and some are in the “better late than never” category, but it certainly seems like Australians are paying more attention to what they need to do to retire comfortably than ever before.

While a lot of Australians still use the default superannuation funds from their workplaces, the self managed superannuation fund has become more popular every year. Many Australians also choose not to self manage, but to choose from many of the super funds that are available instead of using their workplace’s default super fund.

We can’t give specific advice to anyone without an individual consultation, but we would like to present five habits that those who are on the way to effective retirement have in common.

They are Actively Planning their Retirement

I have heard these two sayings often: “It’s never too early to start thinking about retirement” and “It’s never too late to start thinking about retirement.” While it is much better to start as early as possible, even someone close to retirement age can benefit by talking to a financial planner about retirement.

It’s never too early or too late to listen to one of the financial planners in our Perth office. It’s also never too early or too late to become financially responsible. Many people are under the misconception that it is more difficult for singles to be financially successful than couples.

We think that single people have plenty of opportunity to be successful. While it can be more expensive for singles to live due to only having one income instead of two, they also get to be the sole decider on where the money goes. This more than makes up for the expense of living alone.

Here are some financial tips for singles based on their generation or age. Please remember that all information is general in nature and does not constitute advice for anyone’s specific financial situation.

Generation Y

Gen Y people are still fairly young but are rapidly becoming much more financially accomplished than any other generation in history.* The most important things for a Gen Y single to do are to start living on a budget, protect their income and avoid expensive debt such as credit and store cards.

There are certain patterns or money mistakes that Perth financial planners see on a regular basis. Once we have put them on a program, those mistakes usually don’t occur as often as they used to. Remember that all financial suggestions here are general in nature and that we can’t specifically give advice to anyone’s individual financial situation without a consultation.

Settling for What You Get

This is in reference to bills and premiums. Many companies give new customers great deals but won’t extend the same courtesy to their current customers. They are counting on you to stay put and not complain. Meanwhile, it is possible to save thousands just by changing the mortgage on your home. It pays to shop around.*

Spending More Than You Earn

Credit cards make it too easy to spend money you don’t have, putting yourself in debt and paying high credit card interest rates. This is a very common malady.*

Having No Emergency Fund

It is wise to have at least three months’ worth of expenses saved up in an emergency fund. It is better to have six months’ expenses. A lot of Australians are still living week to week, leaving them vulnerable if they can’t earn money for even a month. *