The Future of Financial Advice and Its Essential Advantages

The future of financial advice (FOFA) is proposed regulatory framework. It is being brought in to improve the quality of financial advice and consumer outcomes as a result of the failures of financial firms in the late 2000s. It enables easier provision of simple advice which can be expected to make financial advice more affordable as well as increase public access and usability.

FOFA will see the removal of the accountant’s exemption. Presently accountants are able to provide advice on SMSFs under the exemption provided by regulation 7.1.29A of the Corporations Regulations 2001. Through this FOFA, the accountants can hold an Australian Financial Services License (AFSL) in their own right or being an authorised representative of a licensee.

Many in the financial industry will need to restructure their administrative systems in order to comply with the requirements and will incur transition costs as a result. But however the FOFA reforms will also create new opportunities. This will benefit consumer in enjoying results of the reforms which bring confidence in the industry, in turn, contributing to an increased demand for advice.

The benefits of FOFA are given below:

– Superannuation products and securities.
– Easy managed investment schemes as defined in the Corporations Regulations 2001,
– General and life insurance
– Basic deposit or banking products.
– Life risk insurance products.
– A benefit for a genuine education and training purpose that is relevant to the provision of financial product advice to retail clients.
– Information technology support or software that relates to the provision of financial product advice.
– Financial adviser’s interests will become aligned with client interests, leading to more client-focused advice and greater adviser engagement with clients.
– In this process product recommendations will not be influenced by commissions given to advisers by product issuers.
– Here clients will be less likely to suffer detriment as a result of excessive fee arrangements or sub-optimal investment strategies.
– A more competitive advice market and greater availability of advice.
– The financial planners will be discouraged from recommending imprudent investment strategies.
– In FOFA, a reduction in product fees which will result in significant savings for consumers and reduces the rogue advisers in the industry.

Consumers are the primary focus of FOFA and the Government believes that consumers will greatly benefit from structural change in the financial industry in a way that will outweigh the implementation costs to industry. The above all the quality of financial advice will improve, leaving consumers better equip to make decisions about their finances.

Financial Advice For The Spending Addicts

Everyone has those moments when you casually stroll around a mall, then all of a sudden, you stop in your tracks, things around you blur, and the world slowly swirls to focus on the big red sign in front of your favourite store: SALE. Everything with a percent-off tag suddenly looks so irresistible and you cannot just let them fall into other people’s hands. These are times when we lose control of our spending. It may seem harmless, but feeling this way at every visit to the mall puts your income at risk and can prevent you from reaching more important financial goals. You need a few financial advice to control your spending to save your money from going down the drain.

The first thing you need to do is to set priorities. Make a list of the things you need and make sure to spend money on them first before other things. If you plan on going to the grocery store, for example, bringing with you a shopping list and sticking to it saves time and money but not putting unnecessary items in your cart. Asking yourself questions like “Can I afford this?”, “Do I need this?”, or “Have I checked if it’s cheaper somewhere else?” can also stop you from buying on impulse.

Next is to spend within your means. One way to do this is by patronising the use of cash over credit cards. Only bring with you the approximate amount of cash you need and leave your credit cards at home. In this case, no matter how tempted you are to buy something beyond your budget, you have no choice but to walk away. Think of credit cards as your “debt cards” because you are spending the bank’s money every time you swipe. Make sure your debts are a low as possible so you can pay for them fully on time. Every month you fail to pay makes the value of your debt higher.

The third tip is to make a budget diary. This can help identify the trends in your spending and monitor your total expenses. Have a daily limit on the maximum amount you can spend. If you go beyond it, review your purchases and check where you might have bought something you didn’t really need.

Constantly spending more than what you earn can lead you to a financial storm. Before you know it, you no longer have savings for your financial goals and all of what you earn goes to paying your debts. If you reach this point, you can always seek the assistance of a financial adviser to pull you out of crisis.

Where to Seek Financial Advice

Many times people find themselves looking for financial advice. The problem is the sources they are using when it comes to all of the personal finance topics available. People will ask their friends, family, co-workers, etc. only to be left with disappointment when they are given poor information. Well today I am going to discuss the places that you should seek your personal finance advice from including paying a professional, to finding free information.

Now, if you are the type of person that is not very resourceful and find yourself trusting people that always let you down, your best option is to find a professional financial adviser. If you don’t even know where to start looking for an adviser then you are probably in desperate need of help. Almost any large financial institution will have financial advisers available to you. Walk into your bank, or call your brokerage account and ask what they offer and what the costs involved will be.

Those of you that are a bit more resourceful and have a good foundation for understanding your personal finance goals can probably fine the information from quality sources on the internet for free. Now I would caution you to take anything you find on the web at face value as there are a lot of dot com websites setup that post content and don’t care if it is quality to the point of helping you, but rather a means of drawing in traffic to sell you something through on of their advertisements.

Any website that is publicly traded or well known in the financial world is probably going to be a good start. Many people have heard of BankRate and others like it to find the information they are looking for. Finding a site that publishes content on financial advice is going to be the hard part, but once you have found it be sure to bookmark that site or subscribe to the RSS feed to have updates automatically sent to you.

Once you have found a site that is offering quality information, now is the time to speak to family and friends. asking them if they have ever been to RPP Financial, or Bankrate is going to get you a yes or no answer, rather than their personal opinions on the topic. It is really up to you where you seek financial advice.

Financial Advice for People Approaching Retirement

When a person is approaching his retirement age, it is essential to plan for the future financial requirements in such a way that he can manage his family during this older age, where he will not be earning any income. Here is some useful financial advice for people, who are nearing their age of retirement.

As an initial step, it is essential to identify the guaranteed income he would be earning like in the form of pension. When this expected amount is known, it will be easier for him to further plan his commitments. Next comes the money he has in his savings account and this amount should be added along with the amount he will be earning each month after retirement either in the form of pension or from any other source like rent from a building.

Then, a rough estimate of the monthly expenses that should be made for his family should be calculated and this amount should be subtracted from the previously obtained amount of monthly income + savings in bank accounts. Most of the people approaching their retirement age will be having some plans to visit some places of interest with their spouse after retirement twice in a year or at least once in a year. Here, the amount that might be required for these trips should also be calculated to find whether the trips will be coming within their budget. If not, they can try to earn income by doing some internet based online work if they are very much particular about those extra dollars for tours.

When it comes to financial planning for the life after retirement, it is always essential to keep some money aside for meeting some sudden medical expenses. Some years ago, people were dependent on their children after retirement, but nowadays, this trend has changed and everyone wishes to lead am independent life.

Nowadays, there are financial planning organizations offering the best financial advice under different categories like estate planning, wealth creation, taxation planning, lifestyle planning and of course retirement planning.

Retired life can be spent in peace only when people are financially secured and safe since it is an age where peace is highly essential after several years of work pressure. This is the period when people get time to spend with their family members and financial security during this age can obviously enable people to enjoy their retired life. So, if you are approaching your retirement age, get the help of the financial firm offering the best advice for financial planning.

Get Independent Financial Advice and Invest Your Money in the Right Plan

When you want to invest your hard earned money in the right way then it is good to seek the advice of independent financial advice so that you can invest your hard earned money on the best plan. Majority of the people do not have complete knowledge about the various financial products, they may choose a wrong financial product which could spoil their investment. When it comes to choosing the right plan and financial products it is daunting task as one could loss thousands of money by investing in a wrong plan.

Independent financial advisors are experts and usually they have years of knowledge and expertise in different financial products. They help you to choose the right type of financial product even during uncertain economic times. Everyday fuel price and the cost of regular commodities are sky rocketing and the economic is also unstable but obviously by choosing a skilled professional financial independent advisor you can invest in the right type of plan or products. When it comes to the ability to take the right decision on financial products it goes to none other than professional independent financial advice.

Best annuity rates depends upon various factors especially you have to chose the right plan when it comes to pension annuities, life insurance and many more. You have to pay a certain amount as a premium for a specific period of time and then you will automatically receive periodic payments for a particular period of time. When it comes to annuity rates there are different types including fixed, variable, immediate and deferred annuity. Plans with best annuity rates can be easily chosen with the help of professional financial advisors.

Regardless of your financial situation best financial product will be suggested by advisor. They can be used for choosing insurance schemes, financial products available in bank and private organizations. They will ensure that you will get the best annuity and interest rates and help you to take the right decision.

Important thing you can achieve from a financial advisor is he/she will understand your monthly income and help you to secure your future by choosing an opt plan. If you do not mind taking risks then you need not hire financial advisor. Complete assurance for your hard earned money is provided when you invest it after getting advice from them. So get the right advice before you invest your hard earned money.