Insurance ProtectionNews Activities that Raise Premiums

Activities that Raise Premiums and Make it Difficult to Obtain Life Insurance

Are you an active person looking for life insurance who lives in the Perth area? Are you wondering why your premiums are so high? Here are some high-risk activities that may be raising your life insurance, courtesy of a US not for profit organisation called “Life Happens.”*

Cliff Diving

This is diving off of a cliff into water. It is exceedingly dangerous for many reasons. If you don’t hit yourself on the way down, you can sever your spinal cord when you hit the water, especially if it isn’t deep enough.*

Big Wave Surfing

Australia has a lot of world class surfing. Unfortunately, finding the biggest waves causes the most risk. If you don’t drown, break bones or suffer severe organ damage, you can fall victim to a shark attack.*

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Financial PlannersNews Financial Planning in Perth

Is Financial Planning “Only for Rich People”?

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.*

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NewsRetirement Planning Investment Property for Retirement Income

Retirement Planning 101: Pros and Cons of Investment Property for Retirement Income

Our retirement planning professionals have been helping clients in the Perth area since 2005. We have more than 40 years of combined experience in the financial planning and advising field. Property investing is currently a popular form of saving for retirement. We would like to share with you some warnings from the Australian Securities and Investments Commission about property investing to help you decide whether or not it is appropriate.

“Pros” of Property Investing

One of the more attractive benefits about property investing is that you can create rental income while also benefiting from capital growth over time, assuming that your property actually does increase in value. Another benefit is that property is a less volatile investment than shares. When you invest in a bricks and mortar rental property, it is a tangible asset that you can touch and see.*

There is also a tax benefit to property investing. You can use the costs of maintaining and managing your property as an offset against your taxes. The interest on your loan can also be used to lower your taxes.*

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Financial PlannersNews Financial Planning Perth For Financial Stress

Is Financial Planning the Solution to Financial Stress?

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.*

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NewsRetirement Planning Age Pension During Retirement

Do You Want to Rely on Age Pension?

Age pension still exists to help those who need it, but the retirement planning professionals in our Perth office are dedicated to helping you secure a future in which you don’t have to rely on age pension.

Our Approach

The earlier one begins investing, the more money then can amass for their future. Sound investments make money due to the principle of compound interest. Compound interest is what happens when you reinvest interest that you made in previous years and make interest on your past interest.

As anyone who is paying attention to their home or auto loan knows, compound interest can add up to a lot of money. AMP Capital uses a simple example. If you make 15% interest on $1,000 in one year and reinvest it, the next year you are making interest on $1,150.*

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Mortgage BrokingNews Mortgage Broking and Financial Planning in Perth

Where do You Put Your Extra Money: Your Super or Your Mortgage?

Because we offer both mortgage broking and financial planning to our Perth area clientele, we are in a unique position to answer a question that a lot of people have: is it better to put your extra money in your super or your mortgage?

Recently, this issue was discussed on in an article called, “Weigh your super and mortgage to see where it’s best to put your money.” In the article, some industry experts were quoted about various strategies to figure out where to put your extra money. *

At Approved Financial Planners, we aren’t allowed to provide anything on this blog that constitutes or can be interpreted as “individual advice.” All advice has to be given on an individual basis. This is usually done in person, after we gather some basic information from you.

The article we described above is a perfect example of why advice is best given in person after becoming acquainted with your financial situation. The only thing the “experts” seemed to agree upon is that there isn’t any “silver bullet” answer.*

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NewsRetirement Planning Retirement Planning With Financial Advisors Perth

3 Crucial Retirement Decisions

If you are planning your retirement, a retirement planning professional can be a valuable ally. We have been a trusted name in Perth since 2005 and our financial advisors have more than 40 years combined experience in the industry. While we aren’t allowed to provide anything constituting individual financial advice in this blog, we would like to pass along three crucial decisions to be made before retirement, courtesy of the Financial Planning Association of Australia (FPA).

How Much Money Do You Want to Receive?

It is popular among many financial planners to recommend at least 75% of your pre-retirement income on a monthly basis when you retire. An easy example: if you currently make $80,000, you should plan to make $60,000 a month in retirement. You will be paying little or no taxes on this income compared to your time in the workforce and expenses related to work will disappear when you retire. *

According to the ASFA (Association of Superannuation Funds of Australia) Retirement Standard, couples should aim for $58,128 per year and singles $42,433 for a comfortable retirement. However, the FPA recommends that you create your own budget based on the lifestyle you want to live and then try to figure out where the money is going to come from.*

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Financial PlannersNews Standrads in Investment Property Home Loans

Loans Harder to Come By for Property Investors

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.*

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Financial PlannersNewsWealth Protection Emergency Buffer Fund - Financial Planners Perth

How Large is Your Emergency Buffer Fund?

We have provided financial planning for a lot of your Perth neighbours; our financial planners have more than 40 years’ combined experience. When we are getting to know your financial situation, we like to find out what your assets and liabilities are so we can devise a way to get you to where you want to be when you want to be there.

One of the questions we like to ask is, “How much money do you have set away as an emergency buffer fund?”

Emergency Buffer Fund?

We know that getting through life to the next paycheck is tough for a lot of people. That’s why we feel it is important to have money stashed away in case things go awry. We are not allowed to provide any individual advice on this blog. If you want individual advice, you have to come in for a consultation. Everyone’s finances are different and blanket statements aren’t always valid for everyone.

That being said, a good “rule of thumb” is that three months’ worth of income is a good “buffer” to have in case of emergency. There are many factors that can affect how much of a buffer is appropriate for you. Some of those factors include, excessive debt, one income supporting a household, self-employment, an old car for transport or living expenses that exceed 50% of your take-home pay.

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Financial PlannersInvestment Planning Handling a Volatile Investment Market

Tips for Handling a Volatile Investment Market

Financial advisors, in Perth and across the world, are expected to make sense of what can sometimes be a volatile market for investors. At Approved Financial Planners, we have been a trusted name in the Perth market since 2005. We are now backed by parent company AMP Capital, giving us even more resources and information to help investors weather “storms” or volatile periods in the markets.

One of those resources is Dr Shane Oliver, who is the Chief Economist and the Head of Investment Strategy and Economics at AMP Capital. Recently, on the AMP Capital blog, Dr Oliver provided tips for investors during times of volatility. We would like to share them with you.

Expect Volatility

According to Dr Oliver, one should expect the market for shares to be volatile. He sees it as “the price you pay” for the eventual long term gains that shares typically produce. For example, Dr Oliver sees recent global volatility as “just a correction” that won’t affect long term returns.*

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