What is Advice?
Michael believes in keeping things as simple as possible and ensuring that clients build a financial position that gives options for the future. Avoiding excessive complexity, fads and fancy investment products the focus is on achieving a long term and disciplined plan.
The key to the success and manageability of any financial plan is maintaining adaptability and getting the structure right. Attitudes and wants will change, our plan and structure must be able to move with it. Furthermore, Michael advocate structures that can deliver in the years to come. He does not believe in complex and difficult structures just to save some tax dollars now, only to create a nightmare into the future.
Advice is provided in the following areas
There is often a bad stigma attached to the concept of “streamlining your financial affairs”. The common reaction is that an adviser is going to take away the lifestyle that you have. People often liken the concept of organisation with a budget, and a budget, like a diet, means that you are starved of the things you enjoy. This is not true at all. MPFP works on the concept of priorities. Spend time and money on those things that are dear to you, but reduce the wastage on things that are not. Put that money to use so that in the future, you can continue to do the things you value.
To most Australians under the age of 45, superannuation is something they know is there, but they take little interest in. For any financial plan however, it is vital that your super receives as much attention as the other aspects of your financial affairs. Superannuation was put in place to allow the individual to save for his or her retirement years and lessen the strain on government pensions. An appropriate and efficient use of the superannuation vehicle can be a vital ingredient for all Australians, especially those who operate their own businesses.
Super is your money, though you cannot touch it, it is vitally important that we maximise its usage and the returns it is producing. Furthermore, it provides an excellent vehicle to reduce your company tax and structure your wealth protection needs.
How do you determine where to invest your money? The Australian dream of property maybe, but where? How much do you spend? Do you use debt and what about bad tenants? Some may choose shares, however which shares do you purchase and do you trade them or hold onto them? Do you listen to the tips from friends?
Generally speaking we are bombarded constantly with masses of information, most of which the average Australian cannot disseminate in general terms let alone apply to their own financial circumstances.
MPFP carries a simple investment philosophy. Keep it simple, structure it correctly, ride the good with the bad and always invest long term. MPFP is not interested in gimmicks or fads, just good solid investments backed with a focused and disciplined long-term mindset.
People have different desires and dreams for their retirement. Some want to be semi retired at 50, while others love their work and will continue until they physically cannot. We are all different. It is vital then that you have the structure for your retirement plans that is appropriate and can actually deliver the options you desire. Common errors seen are customers who want to be retired in their fifties and are dumping huge amounts into their superannuation. Superannuation they cannot touch until they are sixty years of age. This is a classic mismatch.
Debt Structure and Management
We cannot function nor develop or grow our financial position without the use of debt. It is a very important instrument in any financial plan. However, it also must be managed and structured appropriately and efficiently.
There are different forms of debt, some are productive while others can be a significant weight on the achievement of your financial dreams. Often people refer to good and bad debt when describing or comparing the debt on an appreciating asset such as a business or property verses debt on a depreciating asset such as a motor vehicle. Is debt over a motor vehicle bad? Well it may be, however it is not that simple and definitely requires advice.
Common mistakes with debt centres on the terms and the structure. How often we hear of friends and family using home loan equity to purchase short-term assets such as cars, due to the perception that home loan debt is cheaper. Is this the right move? Not always, as we have to consider that while the interest rate is lower the term is significantly longer and therefore may in fact cost you more.
Appropriate structuring and efficient functionality of debt is paramount to a successful financial plan. It is often one of the key determinants of a client’s ability to achieve their lifestyle desires.