Financial planning for the future generation

Most parents would like to provide their children with a life that they can enjoy. What that looks like can differ greatly from one family to another, and even from one parent to the other. Many parents would like to provide financially for their children into adulthood, and then there are others who prefer to focus on life skills, and have a sink or swim attitude (no prizes for guessing where I sit on the spectrum).

One of the things that we always ask at Achieveit Financial Planning is what your ambitions for your children are. Your answers can tell us a lot about where you sit, and what kind of allowances that will need to be made for your own personal financial plan. For instance, if you would like to help your children attend University, then we need to establish what that assistance will look like, and work that into your future cash flow considerations. Or perhaps University isn't a priority, but giving the children a leg up into the property market is? Others still may provide board-free accommodation until the children are in full time work, and then they're out on their own. There really is no right, or wrong choice, as long as the expectations between the child and the parents are communicated.

Having this conversation about your children, with your partner is essential. There is the chance that you may not be on the same page, in which case, you will need to negotiate to find some common ground. Once you have these goals in mind, then we can start planning for them. What is your timeline, and how can we best use your resources to accomplish your goals? As always, the earlier you start with these things, the better.

Find Erin* at Achieveit Financial Planning, or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687

This is general information only and does not consider your personal circumstances. You should not act on any recommendation without obtaining professional advice specific to your circumstances. We recommend you speak to a financial adviser before acting on any of the information you read on this website.

The Internet can not provide quality advice.

So in this world of the big wide web, it turns out that you can not replace the human touch when it comes to strategic advice for your finances and retirement planning.

This week I had a new client come in who has for many years looked after his family finances. He has done a great job of placing his super funds with the most appropriate product, ensured that the family had sufficient insurance to protect themselves in the event of any injury, illness or death and has been astute with the weekly cash flow. He had been able to get a budget from the Internet. He had also researched the superannuation and investment products available and learnt to trade the share market - all from information available from the Internet.
However when it come time to prepare their financial position for his retirement date of 5 years time, the Internet only provided confusion. Trying to work out how Centrelink assesses assets and income when calculating age pension entitlements became an arduous task and without this assessment, the amount of money needed to fund the family in retirement could not be ascertained. From speaking to his colleagues he understood that a plan of the steps was needed to position the finances to maximise Centrelink and minimise tax payable not one Internet site could explain these steps, let alone guide him through the steps. When asking his colleagues how they managed the transition to retirement, they referred him to their financial planner.

So I now find myself sitting in front of a new client to provide the strategic advice on pre-retirement planning. My first question to any new client is "How can I assist?" so imagine my joy in hearing the words "I need your help so I can retire like Bob because the Internet can't help. I have printed out pages and pages and I just don't understand it."

It is great to be reminded that good advice from a financial planner will never be replaced by a computer!