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Jeremy Chiel | Andrew Hingston | YouTubeToText
YouTube Transcript: Jeremy Chiel
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This content features a financial advisor, Jeremy, from Stonehouse Group, discussing financial planning, particularly for pre-retirement and retirement clients, and also highlights the integration of mortgage broking as a value-add service. The discussion emphasizes building client trust, understanding their holistic needs beyond just numbers, and navigating the evolving regulatory landscape.
hello everyone we have jeremy from stone
group financials talking to us today
about financial advice
welcome jeremy thanks for having me
kingsley appreciate it yes jeremy tell
us about what you do with your work sure
sure so i'm a partner and financial
advisor at stonehouse group
i actually started at stonehouse about
12 years ago and when i started out i
started in the power planning
section of the business which gave me
really good insight into the the various
aspects of financial planning and and
really how it came together so in terms of
of
what i do now i have a dual a dual focus
at stonehouse part of my role is
actually helping to run the business
itself we have a few different offices
in the different states and we also have
a credit license and mortgage broking
too and the other part of the role is
obviously is assisting my clients and
the majority of
clients that i see are in the pre-retirement
pre-retirement
and retirement phase of their life so i
help them with the with the planning
helping them to gain some clarity
but ultimately it's it's helping them
get some peace of mind around the
situation right yes so it's a very
interesting setup
that you have the advice and also the
mortgage brokering is that something
when did this start
sure so it started about two or three years
years
ago or so and really the reason why we
set it up is a value add to our clients
so we were previously working with
different mortgage brokers before
but it obviously would delay the
advice process by external factors
so the ability to have a client in a
meeting with us and for a mortgage
broker to come in and assist is really
beneficial from the client and they know
that they have you know both of us
looking after them after them as well right
right
could you share with us what
makes you wake up really excited to get
into this business sure so i'll go back
a few years
first of all the reason why why i got
into this business is is growing up i
had a single single mother and she had a
small business
and in time i could see that there was such
such
you know high points and also low points
you know for the business and with
personal finances as well and it really
got me thinking about you know why is it
that some people do so well financially
some people don't some people are very
organized and it could be really curious
about what makes people tick financially
and and why do some people know
more about it so in terms of why i wake
up in the morning it's because there are
so many people that don't truly
understand their finances but not just
the money side it's how it fits into the
overall life and gives them a quality a
quality life
so i love it when i wake up in the
morning and knowing that i'm actually impacting
impacting
clients and because i've been with the
same business for a period of time when
we're talking about long-term plans with
clients um you know looking back over
the past i've had the opportunity to see
some of those plans come to fruition and
enjoy those moments
with the clients it truly makes it feel
like it's it's worthwhile and you can
see the direct impact right you're
having on someone excellent
excellent
so we have a lot of changes and increase
in regulations and
with farseers and adding lots of content
what can you tell us about tell the
students about what they should learn
beyond the textbooks clearly we have very
very
comprehensive sets of
educational material but what are the
skills and other things that they should
be mindful of to do well okay in regards
to the regulation or just broadly which
other skills should they be aware of i
guess is beyond the
what could be learned from techs and
universities okay so i probably feel as
though you know just quickly on the
regulation side of things right the the
only constant in this industry has been
changed right and that's that's a fact
of life ultimately it will result in a
better outcome for the industry so
essentially you know you need to be
doing obviously the right thing and
understand what the legislation is but
there will always be more change right
now outside of that i think what would
be great for students to understand is
there's a lot more to financial planning
than a strategy you can learn in the
textbook right so what was really
valuable about my own journey is because
i started in power planning in the
business getting an understanding of
not just the strategies but the whole
financial planning process and how the
different teams in a financial planning business
business
work from an administration perspective
to power planning to advice to
compliance and how everything
how everything fits together
and i think to be successful you not
only need to know what the strategy is
but how a financial planning operation actually
actually
works regardless of if you're in a big business
business
or a small business as well so that
that's probably one the the second one
that i recommend
i know it sounds very simple
is is having the ability to properly listen
listen
to clients
i think it's very easy to
just demonstrate a strategy
to clients without fully understanding
what would they actually like you know
why are they sitting
in front of you they might tell you it's
for one particular reason but it's
actually your role to to build a
relationship and get to know what that person
person
really needs and would like
so a lot of the times it's much more
than the numbers on the strategy
so just one quick example on that is a
lot of the times with retiree clients
they have this whole plan mapped out for
their time and how they'll have a
certain amount of money and how they'll
spend it
and a lot of times in retirement they're
very hesitant to spend their money right
so what's really important and i place
some emphasis on this is actually having
the conversations to say
you need to spend
some of this money um because for a lot
of people they get to a stage whereby
something happens for a medical reason
they've got all of this money
and they haven't enjoyed any of it right
so it's having some bigger conversations
with clients outside of what just a
strategy yes might be so related to that
one of the common problem that i don't
know how to solve and i must ask the pro
here is what do you do with the client
we need to understand the clients but
they may not be very forthcoming with
any information so how do you deal with
that yeah that's a very a very good
question and it's a typical situation
imagine if you're new to financial planning
planning
and you study these great strategies and
you have a brand new
client a client meeting and you walk in
and you ask some questions and they're
very cold and very hesitant to talk
about their situation it's very common
and if you're not used to that it can be
very difficult and off-putting
and a lot of the times it's important to
realize that the reason might not be
what you think it might not be because
they just don't want to share it with
you they might not be comfortable
yet so it's your role as a professional
to explain why they're there the purpose
and help them to be comfortable
so what i often do in the meetings is
explain to the clients that i understand
this is the first time we're meeting
together and it's a big thing to talk
about your finances but today there's no decision
decision
making it's really to get a feel for who
we both are how we might be able to help
and obviously at the end of the meeting
we talk about the next steps right and
in order to help you as much as possible
we do need the full picture
for your finances right so typically
when you actually explain the reason for
why i'm asking all of these questions
about your money and your situation
a lot of people tend to relax
a little bit and then open up right right
right
so i guess one last question the
trust is and it's often said to be uh
very important well it is a very
important aspect of providing financial
services especially for financial
planning it's actually literally written
in the first year's
learning outcomes as well
what might be one or two points that you
could share with our students how to
build trust or how to
be trustworthy sure sure and a lot of
those those points are trustworthy and
with the new standards for for cm they
they tie hand to hand and it's really
important to know what those standards
actually are and the reason why is in
order to build
trust what you'll need to demonstrate to
the client is you are truly acting in
their best interest right so while it
might sound simple if they're telling
you what a priority and the goal is
you're giving them advice in that
particular area not something else that
the client actually hasn't discussed so
acting in their best interest you know
with limited conflicts removing all of
the conflicts of the advice is one area
from a practical perspective not rushing
the client in other words understanding
that this is a big process for someone
to trust someone i've never met before
for their finances to understand that
people like to move at different paces
just because it says in your process it
takes this amount of time to move to the
statement of advice and then we do the
review meeting at a certain point in time
time
to have some flexibility and if a client
needs another meeting for some financial
literacy or to explain something being
willing and able to do that
with your clients as opposed to rushing
through the full right process so i
think when they understand that you are
there to help them you're there so they
can explain it and give them the best advice
advice
that's something that helps to build the
trust yeah excellent well jeremy thank
you very much thanks very much kingsley
hey fiona pleasure to meet you and
thanks for coming in today hi jeremy
nice to meet you as well thank you how
was your birthday on the weekend oh it
was a lot of fun actually my sisters
came over and we sat outside and we
laughed so much it was great fantastic
do they does your family live nearby or
are they sort of scattered around
australia they live in on the northern
beaches okay yeah and um and you get to
spend much time with them
oh we made we we have a lot of um contact
contact
uh you know just through texting things
like that we might maybe get together
every couple of weeks every three weeks
or so okay i know so far we had just a
brief phone call about your situation um
and you've obviously mentioned
considering retirement and the fact that
you you would like to spend a little bit
more time with family
if possible um is is that the main thing
that you're looking forward to you know
in terms of a retirement perspective or
are you not enjoying work at the moment
um i think it's just not a bad idea to retire
retire
um when you're still
relatively fit and healthy and
able to make the transition
so i'm hoping that i can
fill my life i guess sure sure
well we'll certainly go into all of
those areas in today's meeting so the
purpose of the meeting today is for us
to get a bit of a feel for each other um
and also discuss the different options
you have available and for me to
understand where you're at financially
so we can start coming up with a few
different options okay for yourself how
does that sound yeah
this is what i came for great great so
before we dive into your financial
situation i just want to make sure that
you did have a chance to look through
the financial services guide and the
privacy policy that our office emailed
to you about a week ago or so
i know i received it but i'm pretty busy
at work to be honest and i haven't had a
good look at it okay okay sure so what
what we'll do today is i've got a
printed version which i'll which i'll
give you but there's a few key areas to
understand in that financial services
guide so by way of an example
they would include the fact that we are
licensed to give financial advice it
actually outlines the areas of advice
but it also does outline two key areas
such as if you did have a complaint in
the future where to to go okay and what
the fees could be for the advice as well
great so obviously at the end of the
meeting we'll discuss specifically that
what that looks like for your situation
but please just keep in mind that it's
an important document okay to read yeah
okay in in terms of finances can you
tell me a little bit about what your
involvement has been with looking after
your own finances in the past such as
purchasing different investments or even
looking at your own budget and
expenditure well i've been relatively
involved so uh
we do have an investment property and
that was
something that i thought about a lot and
you know it was a mutual decision
um since
we've separated um i've actually taken
i must admit the super
stuff i've just assumed that i've let it
take care of itself i've been pretty
lazy with that um
um
so i have a reasonable handle on things
but i think i'm going to need your help
okay sure sure and we'll certainly go
into all those areas so fiona i know
that you mentioned to me that you'd like
to retire and in terms of retirement for yourself
yourself
what are the key aspects that are
actually important to you whether it's
from a monetary or a lifestyle perspective
perspective
first of all financially i really want to
to
feel comfortable
and be able to do the things
that i've held off doing for a long time
so i would like to be able to travel and
i want to
you know go to the theater and go out
and things like that and i i'm
i'd like to know
that that's all possible okay sure
so later on in the meeting we'll explore
all of those key areas but just as a
starting point i'm wondering you know
over the past few years have you sat
down before and actually looked at what
does it cost you
per year to live and how much money do
you actually need for some of these
areas no idea okay okay
so that will that will form part of the
starting point just so we can define you
know if we're talking about your aim is
to receive an ongoing income yeah what
does that actually
look like okay and then we'll work
backwards to say how can you arrange
your assets um in order to achieve that
income on a on a sustainable basis okay
how does that sound to you yeah i think
that's what i need yeah okay okay now
one question that i'm just curious about
is is superannuation will obviously form
a key part of your retirement along with
the other assets but from a
superannuation perspective when the
statement arrives
each year
how much attention do you give the
statement and do you understand the
different items on the on the statement
i've really tried to monitor
monitor
my super and
change the investment strategy and
things like that i think i've done
really well okay i've got about eight
hundred thousand so i i'm curious
actually whether you you think that's
a good amount or whether you know
is is that going to be enough for me
sure sure um but i guess i wouldn't mind
some advice around uh
uh
whether i should stay with the
fund that i'm with or whether you could
recommend an alternative sure i can
certainly do that the only point in time
that i'd recommend a change if it was in
your best interest to actually do so so
as a starting point what we'll actually
do by the end of this meeting is start
to outline what the strategy is
first yeah if you can achieve that with
your current superannuation fund you can
certainly do that but if there is a need
to make a change we can recommend that
too so that's part of the full process
so by the end of this meeting you'll
have much clearer picture as to what it
means to engage a financial advisor what
the different options are as well and
also what the fees would look like for
the advice okay and the the only way
that we actually move forward with the
advice is if we're clearly able to show
that the value you receive the advice is
well over and above what the fees are
to actually engage your financial
advisors okay okay
okay
and then after that we'll talk about
what the process is and the next steps
does that sound okay it sounds good
perfect thanks fiona [Music]
hi fiona i'm jeremy nice to meet you hi
jeremy so fiona we we had a brief phone
call i think it was a few weeks ago um
um
was it retired was the retirement
planning that you were mentioning
that you're wanting to discuss today yes
yes
and and when abouts are you looking to
retire um i'm thinking in the next
couple of years perhaps i
i
haven't really decided okay sure sure
um and prior to the meeting our team
actually emailed you our financial
services guide and privacy policy did
you get a chance to read through those
items no
okay um look don't worry too much about
that it's it's in your email so another
point in time you can you can have a
look through those documents um well
they contain a few details about you
know who we are and financial advice um
but they're in your inbox anyway so feel
free to take a look at them you know
when you get a chance all right but but
just in terms of of your situation
what does retirement actually look like
for you
i've got
mixed feelings in a way i
i'm looking forward to it in the sense
that it's going to be
a more relaxed lifestyle and i can
do the things that i've wanted to do for
a while
that looks really nice to me
on the flip side i guess i'm a little
bit concerned about how
how i'm going to fund
my retirement and whether i can keep my
investment property and
okay look i'm sure you'll be i'm sure
you'll be fine we'll be able to come up
with a way
to make it work anyway right um and and
do you know how much money you need for retirement
retirement
no idea sorry okay well you know you
know most most people need about say
fifty thousand dollars or so so if we
can organize
a way to arrange your finances to get
fifty thousand dollars you should be
able to retire but that's enough to
go travelling and
do you
eat out do you frequently go do you
frequently travel is that something
you're interested in yeah definitely i'd
like to have it at least one trip a year okay
okay
okay well look you should be able to do
it but
we'll we'll move on um and we can always
come back to that a little bit later
now just in terms of your own situation
situation
what's your understanding like about
your superannuation uh i've looked after
it i think
but i really wouldn't mind hearing from you
you
about whether you think it's a good fund um
um
whether the options that i have in
invested in are
are
the most
positive things to be
okay okay so so what we'd like to look
for with the superannuation fund is is
the fund that will just give you the
highest highest return because obviously
if you get the highest return it'll earn
you more money and give you more for
retirement does that sound good
uh well
is that the most important thing well we
we'd like to make sure that you can
reshoot your your goal of 50 000 which
you said you need yeah uh in retirement
yeah we we will look into a bit more
detail in terms of how the investments
are positioned do you have much of an
understanding about the different types
of investments
well usually what interests me is
to be honest i don't
i don't judge it just on the return
i actually think for example one of the
options that i like is um
sustainable investment
look they they they can be okay um
what's what we'll do is there's a fund
that we typically use with our clients
that they get a really good result in so
we'll look at that fund first and then
what we'll do is we'll see if we can
find those sustainable investments for you
you
oh is it an industry fund
um so it's not an industry fund although
we can look at some of those funds but
really we just wanted to make sure you
get the performance um
um
and and then we can look at the
sustainable investing is that the most
important aspect for you can i trust you
of course of course this is what i do on
a daily basis with with my clients and
so you know what what we'll do is in the
next part of this we'll talk about what
the different options are and we'll talk
about what the fees are for you as well
okay and um and then we'll present what
the actual advice will be based on your
situation okay [Music]
[Music]
so fiona thanks for telling me a little
bit a little bit about your situation in
terms of when you plan to retire what
you'd like to do in retirement
now what we'll do is start to discuss
some of the specifics around how much
money you might actually need in
retirement okay and then how you can
actually organize your assets to provide
an ongoing income in retirement right
okay so just as a starting point for the conversation
conversation
do you know roughly i'm not expecting an
exact figure how much money you actually
spend each year or how much money you
might need in retirement unfortunately i
it's not something that i've
thought about
so i really need your help i think in
terms of budgeting okay sure sure so
what we can what we can do and we'll do
this at the end of the meeting and it'll
be collaboration between both of us is
we'll actually sit down and look at what
your expenses are over over a year and
as a starting point it'll be an estimate
of your expenses now
now
i know from our previous conversation
you told me that you're about to pay off
your mortgage in the next few months
so what we'll do is we'll look at what
your expenses are but then what they're
likely to be in retirement in other
words we'll we'll not have the mortgage
figures in there as well right um i know
you still have some personal risk
insurances which you're likely to cancel
in retirement so we'll take out those
expenses and get a rough idea of what those
those
figures actually look like okay does
that sound like an okay starting point
yeah i think so okay
okay
so what will be really important over
time is for us to to track what those
expenses are because if if it looks like
they're 60 000 per year your financial
plan will be based on generating 60 000
however if it looks like they're really
90 000 per year it'll have a big impact
on your on your finances yeah
okay so do you feel okay after we
actually implement the advice if we're
in contact on a regular basis to
actually monitor those figures and then
adjust your plan if needed well that
costs more
so it's all it's all included in the in
the ongoing advice okay what we'll do at
the end of the meeting is i'll let you
know exactly what the fees will be for
the advice okay um and how you can
receive more value
over and above what those fees are yeah
well i guess it makes sense doesn't it
to continue um
um
monitoring things and think think about
it like if you're if you're on a cruise
ship and you're going from
sydney and you're going to somewhere in
in america you might have a straight
line as to where that cruise ship
is taking you um and if there's no
captain there it will go on the straight
line but along the way there's likely to
be different storms and weather events
the cruise ship will need to navigate
the way to the to the end point uh
provided there's there's someone leading
or a captain in the boat so that's part
of the ongoing advice journey where
together we'll navigate those changes
okay would you be comfortable with that
yeah that sounds good okay okay so from
a personal perspective um i know you've
told me about to pay off your mortgage
do you have any investment properties
yes i do
um it's a
an apartment on the beach in
in tamarama
tamarama
so it's
quite a nice little nest egg okay and
how much rent do you receive
just roughly from the investment
5 000 a month
okay sure sure and uh and what's your
superannuation balance
it's close to 800 000
okay okay and fiona are you familiar
with how you can access your
superannuation and how the tax works in
terms of accessing funds in retirement i
have no idea i know i could
go on to
a transition to retirement plan i know
that's an option
but i really don't i need help with
managing the tax sure so what will what
we'll do in terms of generating the
income for retirement is we'll first of
all work out what is the exact figure
you need in retirement
and what we'll do then is deduct off the
amount of rent that you receive yeah
there's obviously expenses associated
with running the property so we need to
understand the net amount you actually
receive so the physical amount in your
bank account and the remaining amount we
need to make sure you can actually
receive that as an ongoing income from
your superannuation okay so your
superannuation fund won't need to fund
your whole income it'll obviously be
half or part from the investment
property and apart from your
superannuation okay fund
now fiona what we'll do is make sure
that when you retire you can actually
receive a monthly income from your
superannuation fund
which is which is called actually a
pension fund
when you retire okay have you have you
heard what that means
um no
okay oh jeremy i forgot to mention to you
you
a really important thing that i want to
do when i retire
is to set up a scholarship
scholarship for
for
disadvantaged students
so i know that's gonna i'd really like
it to be a generous one okay so i'm
thinking of at least ten thousand
dollars just to go to that every year
okay so i guess that's just effective
okay so we'll definitely take that into
account in terms of what your
expenditure would be um now i know we're
just starting these conversations so
they're broader now but they'll become
more specific towards the end of this
evening and obviously once we present
the advice for you so just in terms of
the income just one really important
fact that we want to keep in mind is
when you're taking money out from your
superannuation fund we'd like to ensure
that you don't take out too much each
month right so the balance doesn't erode
over time so that's one of the key
factors that we'll actually
look for as a starting point
and i guess i also need to know
what i should do with the rental income
how to avoid tax sure sure so in the
next step we'll cover all of those yeah
[Music]
so fiona now we've we've started talking
about your situation in terms of wanting
to retire in the next in the next year
or so
what's really important to do is to work
out how much income you'd actually need
in retirement and then we can work out
and see can your asset base actually
support okay that income so we know it's
a realistic conversation yeah so
do you know roughly how much money you
you need in retirement
i want to live comfortably so
a hundred thousand
thousand
a year i think okay again you can do
that um that'll be fine we can we can we
can find we'll find a way to make that
that work um
i mean we haven't talked about your
assets yet though so
so
do you um you know apart from your home
which you told me that you're nearly
debt-free do you have any universal properties
properties
i've got a little house out in saint mary's
mary's
it's um i rent it out and it's um
it's about 300 a week
300 a week yeah okay
yeah you you mentioned to me just
briefly on the initial call that
you're finding difficult with the maintenance
maintenance
of it it was taking up some time and
becoming expensive is that is that right
yeah it does tend to um
need a lot of maintenance that's true
yeah okay and i i i'm reluctant to
um increase the rent because i know the family
family
okay look just leave it
as it is okay um
property will always go up anyway yeah
so you know it's a good it's a good
investment um and the maintenance it's
just it's just a holding cost anyway and
at least you're getting the three
hundred dollars per week yeah um and
you're doing the right thing by your
friends so don't worry too much about it
great i'm sure you'll be right in the future
future and
and
do you have much much cash in terms of a cash
cash
you know emergency reserve at the moment no
no
okay well
i mean what do you mean in the bank yeah
in the bank account so if something came
up you know from a medical perspective
or emergency
a lot of people have say a few months
worth of expenses do you have anything
like that yes yeah i've got uh um
i think it's about
thirty thousand i suppose i
i
keep forgetting what i've got actually
here but well let's just i mean thirty
thousand sounds good enough yeah um yeah that
that
should be enough anyway i mean for most
people it is yeah and and and with your
your super fund now i think
i think you said you had about half a
million dollars or maybe it was
six hundred thousand no
i didn't say that
oh no sorry that was my sorry that was a
client um i had last week uh how much do
you actually have in super 800
800 000. yeah okay okay um
um
i think you said you needed a hundred
and ten thousand a year for your income
no jeremy i said one hundred thousand a
hundred thousand yeah okay okay
well if you're getting three hundred
dollars per week
from your from your property yeah you know
know
let's just say after the high expenses
you know you might get ten thousand
dollars cash in hand so you need about
ninety thousand dollars a year from your
super fund
and if you took out
ninety thousand a year on your portfolio
it's over ten percent of the balance um
um
but is your super fund doing well at the moment
moment
i'm starting to get confused i'm sorry um
um
what what was that so so with you with
your superannuation
fund does it have good performance uh
uh well
well i
i
i think so um
i i've got it invested in um
at the asian share market
and it's pretty good yeah is that what
you mean like the return yeah exactly
the returns
yeah it's about 10 10
10
okay so what we'd like to do is to make
sure that you're invested all in shares
because if you're all in shares
you'll get a really good return on the
money and then you can take out enough
to to live does something like that
sound like it'd be good for you no
why do you think that well
well
it just means that you can try to get
the best possible
performance don't you aren't supposed to
worry about risk
there's that too so you know you've got
a little bit of cash which is good so if
something goes wrong you can access your
cash but what we'll do is just to move
on to the next section
we'll we'll go on to talk about you know
where your money would go if something
actually happened to you as well
i'm sorry i'm getting confused here okay
okay so what we'll do is we'll talk
about we'll go back to the amount of
money that you need in retirement every
year okay and then we'll go from there
okay great [Music]
so fiona you mentioned to me that in the
next few months you'll actually pay off
your your home loan is that correct yes
fantastic okay okay now in terms of
other assets outside of your home i know
you mentioned just very briefly on the
phone that you had an investment property
property
i'm just wondering how much rent do you receive
receive
from that property even if it's just
approximate for this conversation it's
90 000 per annum okay so you've got 90
000 a year rent coming in
now in terms of other assets outside of
your superannuation
do you have any cash and term deposits
actually yeah i've and that's one of the
questions i want to ask you about
because i've got about
um 350 000
just sitting in the bank
okay and as you know the
interest rate's almost nothing
so i really want to know what to do with
it and then i've got the issue of um
i really don't have to pay a lot of tax
okay or more tax than what i'm already
paying sure so i'm looking for some
advice in that area okay sure
how do you also feel about the fact that
with the cash you have it gives you a
bit of a security blanket
in other words if something does happen
in the markets the cash will obviously
be very stable and you've got access to
that money how do you feel about that
well i i know that's important but i
guess what i'm
unsure about is how much is a good buffer
buffer
because it seems to me
350 is enough to actually do something
with it but i don't know what
okay okay um and would you like to be
able to retain access to some of that money
money
in other words if something happens to
have access quickly as opposed to i
think that's really neat
yeah sure sure i'd agree with you as
well i mean you've already got the
property if you look lock the funds away
uh elsewhere and you've got two assets
that if you need the money will take a
long time potentially to sell it could
be an issue yeah okay um and and and
what's your superannuation balance at
the moment
the the super is 850 000. 800 000. okay
so what i'll do is i'll i'll let you
know what one of the strategies could
look like
now obviously this is the first time
that we're meeting each other so we're
going into some of the details now and
this will be a bit of a general overview
and what will actually happen is at the
end of the meeting we'll have collected
all of your information and the next
time we sit down i'll present you
exactly what the strategy would look
like but as a as a starting point are
you aware that superannuation in
retirement is completely tax-free based
on your situation no
no
i i thought i had to pay tax on that so
in in retirement yes superannuation fund
is completely tax-free okay so all the
investment earnings and the monthly
income you could take
and so just to confirm i understand you
mentioned that you don't want to pay too
much tax yeah and you're also concerned
about the interest that you earn in your
bank account that's right that's right
yeah okay so what's actually
possible because you're under the age of
65 is to contribute funds to
superannuation before you retire so you
can get them into a tax haven
now ordinarily you can put in a hundred
thousand dollars a year
oh i see into super okay um but i know
you've told me you've got 350
thousand dollars so one possible option
is and obviously i'll confirm in writing
for the exact recommendation okay would
be to use what's called the bring
forward rule right all it means is you
can use three years worth of those
contributions at the one time
in other words instead of just putting
one 100 000 in
you can actually put in a lump sum of
300 000
but nothing for the next three years
oh that's interesting gee i didn't know
about that yeah so what it means is i
know you'll be retiring in the short term
term
and after the age of 65 it's not
possible to actually do it oh so before
you retire okay you can transfer as much
as possible into superannuation in the tax-free
tax-free
environment so what it means is and then
after 65 um after 65 you can no longer
make that type of contribution if you
are working you can make another type of
contribution but for the moment we'll
just explore what this strategy is for
you okay um but fiona what's what's
important to keep in mind is just
because the funds are in superannuation
doesn't mean they need to be fully invested
invested
so you're going from a situation whereby
you've had 350 000 in cash
if you put in 300 000 to your super fund
all in shares that's a lot of risk to
take on
so what we need to explore is what's
actually appropriate in terms of investing
investing
and investing those funds okay so we
don't completely change okay what your
risk profile is yeah and by the way
because of being able to retire you'll
actually have full access
to those funds as well
so they'll be in a situation where
they're tax-free and there'll be other
opportunities for those funds oh that
sounds like does this does that sound
like they could meet your needs absolutely
absolutely
and just before we move on to the other
strategy which we've discussed before
could you just repeat back to me what
you think would be the main benefits
of that type of strategy
of moving
the money that's in the bank to the
super um
well it would mean that
there'd be more return on it is that
what you said
so for the moment let's put the returns
aside okay because once it's in the fund
if it's appropriate you can stay in cash
right or you can invest oh i see um but
what will actually occur is once the
funds are in sight of superannuation
there'll be no tax to pay anymore right
so it's the tax benefit so it's it's the
tax side of it and you have full access
to the funds okay so we haven't locked
away your funds as well okay yeah
i get it yeah thank you definitely perfect
perfect [Music]
so fiona so far that you mentioned that
you are looking to retire in about six
months or so and what we'll do now is
i'll ask you a few questions about your
personal fan financial situation and
we'll talk about some options okay does
that sound okay good okay so just to
confirm you mentioned on the phone call
to me that you had nearly paid off your
mortgage on your home is that correct
yes great great
um now in terms of the other assets you
have aside from your personal place of residence
residence
do you have an investment property i do
and the return on that is about 90 000
per annum okay okay
and uh and when i say return it i mean
the rent that i get from the rent okay
and do you have any cash or term deposits
deposits
yes actually jeremy i need some advice
about this because i've got about
300 000
just sitting in the bank
and i'm
curious what you think about that
whether i could be doing something
better with it okay okay at the same
time i'm a little bit worried about the
tax implications okay sure sure and and
how do you feel about the the fact that
the funds are very stable versus if you
were to invest those phones
they could fluctuate both up and down
um well i i i just get the sense that
interest rates are so low at the moment
it seems like a lot of money just to
be sitting in the bank it's a bit of a
wasted opportunity yeah
don't you think that there's something i
could be doing with it look
there's something that i've got in mind
it worked well for one of the clients i
saw last week um and it could probably
work well for you too
we'll come back to that in a minute but
how much do you have in your
superannuation fund
uh about eight hundred thousand eight
hundred thousand okay but the main thing
that you'd like to do is make use of the
of the funds that you have in cash
uh well i i know it's important to have
some money that's accessible but i do really
really
want to explore ways of
making that amount work
work
okay so what we'll do is we've got a
really great share portfolio that we can
actually invest those funds in
for you and and the reason why it's
really good is over the past five years
or so it's been achieving a return of
about 17
per annum which is much higher than your
cash and term deposits would you like
that type of return
well i guess it sounds good but um [Music]
[Music] i'm
i'm
so you're saying i should invest in
shares yeah so if you if you put the
money in shares because it's had the
good returns for the past five years
it'll probably have good returns for the next
next
five years and 17 is obviously a lot
higher than you know 1.5 percent in your
bank account or one percent that sounds
a little bit risky to me
well they're they're high quality the
high quality shares
so it means that you know we'll probably
select about five shares or so so it's
really well diversified in australian in
australian shares
and you know if you need the money you
can always just sell the shares
does that sound okay
i'm really unsure about it i don't know
i mean you're the financial advisor i i guess
guess
you think it's a good idea well i think
it's a good idea and my clients last
week really liked it and i've had some
good feedback from other clients too
too so
so
we'll organize a proposal based on that
but actually do you need to keep any
money in cash for emergencies or is that
not really important for you
i think i should i think i need some
money that's um
accessible and secure
i'm i'm just a little bit you've you've
sort of thrown something at me with the
share option i i'm just i need to think
about that okay just keep in mind you
know i wouldn't worry about having too
much money in cash because with the
shares you can sell them either up or
down you can sell them at any point in
time and you can always just get the
money back
but i know
the share market's volatile you know
maybe i'll lose look you'll like you you
could but the five years last five years
has been good but in any case what we'll
do is i'll put the advice in writing for
the portfolio and um and we can
obviously discuss it a bit more detail
in the next in the next meeting so that
will be yeah i think you'll see how much
of a great idea it is at that point in time
time okay
okay [Music]
hey fiona good to see you have you been
oh look i'm so happy retired it's really
made a difference so much more energy and
and
life's good fantastic now i know you
told me you wanted to do these piano
lessons for a long time but you never
had a chance
have you been doing them they're not
going that well i'm my my fingers are
just so
stiff i don't know but i guess i'm
enjoying it good i'm glad to hear and
you'll have all the time to work out how
to do more or find something you like
doing yeah but today
um i've got a bit of an agenda in terms
of what we'll discuss in today's meeting
right but before i start that i'm just
wondering if there's anything in
particular that you'd like to add to
there is jeremy actually um look
look
i'm really worried about
the this trade war i mean it might sound
a little bit crazy but
this a u.s china trade war because my
friends are telling me
that the share market is about to crash and
and
it does concern me because as you know the
the
my super is really important
important
so i need some help with that i don't
know what to do definitely definitely so
fiona before we go into the specifics of
the stock market do you remember how
your funds are actually invested
with your superannuation what's your
recollection like
well i've really just followed your
advice i think and um as far as i know
know it's
it's
relatively well balanced in in the sense
that it's not all in one option
option
but maybe you could can you remind me
what's definitely definitely
so every type of investment can go up or
go down by a certain amount and some
investments are a lot safer than others
so what you mentioned to me in the first
meeting was that it's really important
for you to make sure that you can
receive your your income you're reaching about
about
four thousand dollars per month from
your portfolio that you can continue
that income and you can also preserve
your capital
over time because you mentioned wanting
to pass it down to two
children do you remember those
conversations yes yeah fantastic so what
we actually discussed was
if you're looking to do that you only
need to achieve a return of about four
and a half percent per annum to recoup
those pension payments
now because of that
we didn't need to take a high risk
approach to your portfolio because your
personal goal is about four and a half
percent now if you told me you needed to
take out ten percent
piranha we'd be having a very different
conversation right now because obviously
the investments would need to earn you 10
10
and take on a lot more risk
but because you didn't need to take
a lot of risk in the portfolio and only
achieve about a 4.5 percent return
what we've actually done is we've
structured your portfolio
so about 50 of the fund is in cash and
fixed interest
and term deposits and 50
of the funds would be in australian
shares and international shares
so the first thing to keep in mind is of
of your portfolio not all of it is
actually invested
in the stock market so there's about 50
percent where the rate of return will be
low but that will help to keep you very steady
steady
now the other thing to keep in mind is
the four thousand dollars a month that
you're taking out
we've actually instructed the
superannuation fund to initially only
take it from that very conservative area
of the cash and fixed interest so when
you see the stock market moving up and
down just keep in mind that you're not
selling those assets
every single month
to fund your income payments
okay so does that give you any comfort
just to start off with
i think so i'm just wondering
if i
wanted to increase the return
so for example i wanted to get more from
the super
what would i have to do okay so in order
to achieve a higher return that 50
in the cash and fixed interest we need
to move some of that to the share
options okay but what we need to do
before making that type of change is to
ensure you're comfortable with both the
ups and downs and the stock market
what's your advice i mean i think given so
so
the advice should be tailored to what
your needs
needs are you're not worried about the
stock market no and the reason why is
fiona if you needed to start selling
those assets you lock in a loss the
moment you sell okay if you actually
have a longer term
time frame it gives those assets a chance
chance
to recover back over time because you
don't need to sell them but how can you
be sure
how can i be sure
so what we can do is if we look back
historically the stock market or the
property market it always follows a
cycle of a really good time and a really
bad time and a really good time
no one has a crystal ball to be able to
tell you when those exact
times are but those cycles do repeat
themselves now i can be a hundred
percent confident if we know that you
actually have the time frame to ride out
the storm and i'm confident of that
because you've actually got a half of
the portfolio in conservative assets
where you're taking your income from so
you're not selling assets on a regular
basis okay
i feel better now [Music]
hey fiona nice to see you again how have
you been hi jeremy i'm good i'm great
actually i know you've been retired for
about what six six or seven months now
yeah that's right what's it actually
been like for you it's been an
adjustment um
i've found it a little bit
of a
struggle to find things to do
but people tell me that it is it takes a
while so
it's not okay a new phase of life new
journey um now so what we're going to
talk about today um will be around your
your income you're receiving or did you
want to talk about anything yeah i do
actually oh um i
am a little bit worried
about the um
um
the stock market i i've been watching
the news i think
things seem to be very unstable at the
moment there's
people are saying that it's about to crash
crash
and i i worry about my super
so the the the thing is fiona if we look
at your
your super fund i'm really confident you
know it should be okay for the next two
years or so the good returns will
they'll keep going how do you know
jeremy so all we'll do is we'll look
back at history in terms of how long
these these returns will last for
and um we'll do some analysis and
there's a good chance it'll last for two
years but that's not what i'm hearing
it's actually i
quite different to what i'm hearing well
i'd probably just i'd probably just
switch off switch off from it um you
know the best thing is don't worry too much
much
too much about it i mean
it doesn't even matter that much if your
fund goes down by 20 you know you've got
an investment property and you've got
some cash outside of super so you'll be
okay don't you think well
well
i've got a friend who who um is much
more careful with her super she's
monitors where what's it invested in and um
um
wouldn't it be more sensible to
shift the options well i think what we
should do is i know you're telling me
these concerns but
maybe if we just wait another year
or so i know we only speak every year or
so anyway but if we just wait till next
time and
maybe let's just see how it's doing but
jeremy what am i paying you for
yeah so we're obviously doing ongoing
investment management
for your fund as well so we'll we'll
take care of it um what you'll make
decisions well i would need to contact
you first
so maybe
maybe if there's something that comes up
i can just i can just let you know would
that be good
oh um
my goodness it
it's just leaving me
insecure to be honest i i
is that how things work well look what
i'll do is i'll
i'll i'll take a look at it when you
leave and i'll come up with a bit of an
idea a bit of a plan
but one thing i just wanted to flag
for you is obviously within your fund
you've got some cash and term deposits
and fixed interest now if the market
goes down a lot it might be really good
idea just to move that cash and fixed
interest and just buy some more
shares and it would mean your fund is
100 percent shares but there could be
some good opportunities how do you feel
about it
so you mean like there is a crash
share shares go down in price that's a
good time to buy them is that what
you're saying yeah and it would mean
that your fund is a lot more riskier for
the long term but i think you'd get some
good performance if you do that
based on what
so the shares have been good in the past um
um
and you know you seem to be i know
you're a little bit concerned but you
seem to be okay if it moves up and down
a little bit so if you're moving into
more shares
in the long run you could probably do better
better
how about we do that
well i'm really dependent on you because
i don't know much about this
okay so
i'm not quite sure if i'm if i'm
thinking we should go this way or or
maybe there's another way we could go um
but just leave it with me i'll i'll get
back to you maybe in a few weeks
a few weeks or so and um we'll go from there
there okay
okay [Music]
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