Two thirds of Australian's don't have enough money

Almost two thirds of Australians think they do not have enough money. According to an online poll published in News Limited newspapers, approximately 61% of respondents said they were not happy with their finances. Approximatley 35% of survey respondents said they were happy with their financial situation, while 4% said they are not sure.

If you would like help saving or budgeting, speak to one of the financial planners at Intellichoice on 1300 55 10 45.

How to get the best from your super

We know superannuation can seem boring, but putting good strategies in place now could make a big difference to your future. And getting your super sorted doesn't need to be time consuming or hard work. Here are some quick and easy tips to help get you on your way.

1. Find lost super
Did you know that there's more than $13 billion of lost super in Australia? That's a lot of money and there's a chance some of it's yours. It's easy to search for your money via SuperSeeker, the Australian Taxation Office's (ATO) online search tool. After all, if you lost a $100 note, you'd spend at least a few minutes looking for it, so why not spend a little time finding your lost super? Go to www.ato.gov.au and follow the links to SuperSeeker to search for your lost super.

2. Consolidate yoru super and save on fees
And once you've found any lost super, don't burden yourself with multiple fees and bundles of paperwork by having several super funds. It makes sense to roll it all into one super fund. Fewer fees and less paperwork!

3. Exercise your right to choose
So now that you have all your super in one place, make sure you choose where it's invested. Super funds nowadays have many different investment options that members can choose from. So no matter what stage of life you're at or what your investment goals are, your super fund will have an investment option that's right for you. Alternatively, speak to your financial adviser for professional help and they'll be able to assist you in deciding on an investment option that suits your needs.

4. Make the most of profesional advisers with the right expertise
After you've done all this, and if you'd still like an extra helping hand getting your super sorted, why not use the professional services of a financial adviser from Intellichioce? For a completely low fee, our team of qualified financial planners can help you grow your wealth and help you get on track to a comfortable financial future. Call 1300 55 10 45 for an obligation free financial meeting with one of our financial advisers.

5. Ensure you're insured
Life insurance is unlikely to be a big priority if you don't have a family, but what would happen if you couldn't work due to injury? You probably have insurance cover as part of your super, but you should check that it's enough. It's also worth noting that income protection premiums are generally cheaper if taken out through your super, but again, make sure that it's enough and meets your requirements.

For financial advice on superannuation or insurance, speak to a financial planner at Intellichoice today on 1300 55 10 45 or visit www.intellichoice.com.au for details on the various services offered.

Planning for retirement

Working out the best way to build your nest egg for retirement is never easy, but many agree that relying on superannuation alone is not enough.

According to the Westpac ASFA Retirement Standard, a retired Australian couple needs to earn more than $51,727 a year to live 'comfortably' or more than $28,080 a year if they want to live 'modestly'.

Investing in property is one way to help fund a comfortable retirement that allows you to pursue the interests, hobbies and activities of your choosing.

Here are 5 strategies for successfully using property investment to build wealth for retirement.

1. Think long term
Retirement strategies are all about investing money wisely over many years, building wealth through compound interest and re-investment. Think long term and have a realistic game plan that has built in buffers to ensure you remain in a comfortable position in future years.

2. Aim for capital gains
It is the capital gains that make property investing so attractive for retirement, so buy your property with capital growth in mind. This means choosing a home with resale potential that is of maximum appeal to tenants. Property experts often recommend new-built family homes because they usually have fewer maintenance costs, are attractive to the ideal tenant, and are tax effective for the investor.

3. Diversify
Property should play a big part in your investment portfolio but avoid putting all your eggs in the one basket. Diversify and spread your risk among a number of different sectors including property, shares or managed funds.

4. Consider taxation laws
Rental income may be taxed at a higher rate than superannuation unless you set up your own super fund and acquire property via your fund. Seek expert advice to best understand taxation laws and make the most of superannuation concessions.

5. Start now
It's never too soon to start planning for your future. While you are still working and have equity in your home, now is the time to use property investment as a way to optimise your financial security for the time when you plan to put your feet up!

For help on planning on retirement having an income stream during retirement, speak to one of the financial planners at Intellichoice on 1300 55 10 45 or email info@intellichoice.com.au.

Creating an investment portfolio

Before investing in shares there are many questions you have to ask yourself before you put together an investment portfolio with your financial planner.

• Are your investments going to be long term or short term?
• Are you looking for a return in the form of income and long term capital growth or a short term return in the form of a large capital growth?
• What is your tolerance to risk? Are you prepared to risk some of your investment capital for the opportunity to make higher returns?

If you are looking for income and long term capital growth then you should look at stocks that have a proven long term business model and pay good dividends. These stocks are referred to as Value Stocks and would be considered to have a lower risk profile. Their share prices gain over the long term and pay dividends every 6 months providing you with an income. Many stocks within the Infrastructure sector would be considered Value Stocks.

If you are looking for short term capital growth then you should consider stocks that are just starting their growth phase. These are usually new companies that are just starting production or expansion. These stocks are referred to as Growth Stocks and would be considered to have a higher risk. Many stocks within the Energy, Material and Health sectors would be considered Growth Stocks.

Don't put all your eggs in the one basket - investing evenly across Value and Growth Stocks can create a diversified investment portfolio with a medium risk profile. An educated investor can achieve both short and long term capital growth and create an ongoing income by receiving dividend payments.

The difference between a good and bad investment portfolio is always about education and knowledge. The educated investor will always look to buy stocks at discount prices and introduce simple hedging strategies to maintain the profitability of their investment portfolio during volatile times.

To find out whether investing in shares is right for you, speak to one of the financial planners at Intellichoice today on 1300 55 10 45 or visit www.intellichoice.com.au.

The other side of Lending – Mortgage Schemes

Investing in a mortgage scheme
“I wish to get a better rate of return on my money and don’t really mind having an indirect exposure to property as the underlying asset class.'

That's roughly how a mortgage scheme (also called mortgage funds) works, except it involves three extra features: 

1. More than one person contributes money to the scheme;
2. Investors' money is pooled together or used in a common enterprise for scheme members; and
3. Scheme members give up day to day control over how the scheme operates.

Like any investment, you face risks. Your returns will be affected by the ups and downs of property values and interest rates. You also rely on the skill and honesty of scheme managers and property valuers to find borrowers who can pay on time, with adequate security.

In the past, most mortgage funds have operated successfully. Some, regrettably, got into disastrous financial trouble; either because the managers lacked the skill to manage mortgages, especially when some of the borrowers failed to pay, or they lent too much money on optimistic valuations or risky development properties. A handful of operators defrauded investors.

Watch your margin of safety
Risk in mortgage lending lies in the gap between the value of the property and how much of that value is being lent to the borrower (described as the loan-to-valuation ratio). The closer the amount lent to the value of the property, the higher the risk that you might lose part of your investment. A $60,000 loan for a property valued at $100,000 represents a conservative 60% loan-to-valuation ratio, but a $95,000 loan on the same property represents a much riskier 95% loan-to-valuation ratio.

What type of scheme can you choose?
Mortgage schemes, or mortgage funds can be set up in different ways. You can choose:

• Pooled mortgages, where all investors share in all the mortgages. You therefore take your share in all the income and spread the risks across all the mortgages that the scheme manages. LOW / MEDIUM RISK
• Contributory mortgages, where you choose which mortgage(s) you invest in. Your mortgage(s) may pay a different income from other mortgages in the scheme. Your risk depends on the quality of the borrowers to whom you have chosen to lend. MEDIUM RISK
• Debenture or mortgage companies, where you invest in shares or debentures issued by a company that invests in mortgages. Here, you are really becoming a shareholder in, or lender to, the company, which in turn owns the mortgages. Check whether the mortgages are pooled or linked to specific properties. HIGH RISK.

What type of scheme managers can you choose?
All scheme operators must treat investors honestly. At present you will find these types of scheme managers:

• Managers of registered schemes must operate the scheme through a public company that holds an Australian Financial Services Licence and comes under ASIC regulation. (You can check this licence free of charge through the ASIC website or contact the ASIC Infoline by email infoline@asic.gov.au or ring 1300 300 630.) The scheme must have a constitution, a compliance plan and a product disclosure statement that you can inspect. It must also have proper internal procedures for handling complaints, and be a member of an authorised external dispute resolutions scheme.
• Managers of industry supervised schemes must be supervised either by the Law Society of NSW or the Law Institute of Victoria. First, get a copy of the rules set by each body, then make sure any scheme you are considering is abiding by the rules before you invest.
• Directors of mortgage debenture companies must operate through a public company. They must act honestly and diligently, but require no licences or complaints schemes. The directors are free to choose whatever operating systems they like so long as they obey general company law.
• Managers of unregistered and unlicensed schemes must restrict their scheme to 20 people or less and must not be in the business of promoting schemes. Unregistered schemes are not regulated by anybody. You are on your own. Check everything and everybody involved.

What should you choose?
Mortgage schemes may suit your needs and circumstances. Choose the scheme and the manager that suits your own knowledge and experience. If you possess no expertise in this area, you should seek appropriate financial advice.

For more information about mortgage schemes and whether they suit your needs, speak to one of the financial planners at Intellichoice today on +61 7 3624 1900 or email info@intellichoice.com.au. Alternatively, visit www.intellichoice.com.au.

Get your finances in shape

Get your finances in shape. Use this simple checklist to assess how healthy your financial management is.

• Do you know how much money is going out and coming in?Use a budget planner to easily track your finances
• Do you have a financial plan for the next year, five years? A financial plan will help you reach your short, medium and long term goals
• Do you have enough funds for a rainy day? We recommend that you have equal to about three months in savings for those emergencies
• Pay extra on your home loan so you decrease the amount of interest you pay each month and it helps you pay off your home loan sooner
• Get the best available rate on savings. Do your research and find savings accounts with high interest rates. Make compound interest work for you
• Pay off your credit cards in full each month. You could also consider getting a debt consolidation loan to pay off all your high interest credit cards

 For more tips on savings, budgeting and keeping your finances fit and healthy, speak to a financial planner today on +61 7 3624 1900 or email info@intellichoice.com.au. Visit www.intellichoice.com.au.

Do you need to update your salary sacrifice arrangement?

Salary sacrifice not only boosts your super balance, but it can also reduce your accessable income and therefore, the income tax you pay. By salary sacrificing, you may be able to reduce the total tax you pay and increase your super contributions without impacting your take home pay.

It is important each year that you reassess your salary sacrifice arrangements to ensure you are getting the best benefits available.

Differing circumstances may affect how much you can salary sacrifice. For example, if you have had a pay increase in the last 12 months, it may be beneficial to increase your salary sacrifice contribution, which in turn will minimise your payable income tax.

However, please be aware that the government has now reduced the before-tax contribution limit and if you breach the cap applicable to your age, you may be liable for excess tax.

The annual individual limit on before-tax contributions known as concessional contributions (eg. employer Super guarantee or salary sacrifice) is $25,000. However, if you turn 50 at any time between 1 July 2007 and 30 June 2012, you will be able to contribute up to $50,000 (not indexed) of before-tax money from the financial year you turn 50, until 30 June 2012. After this date, the limit will be $35,000 for everyone.

For the self-employed, this cap applies to personal contributions you make for which you claim a tax deduction.

Over the years, salary sacrifice has proven to be one of the most popular and effective wealth accumulation strategies available in Australia. Conditions do apply and we recommend you discuss this strategy with your financial planner to see if this is suitable for you.

For more information about salary sacrifice, call 1300 55 10 45 or email info@intellichoice.com.au. Alternatively, visit www.intellichoice.com.au for more details.

What stops people from getting financial advice?

There is always the temptation to do it yourself when it comes to your finances, but the truth is that without specialist financial planning knowledge, you may not reach your financial goals.

Many people put off getting quality financial advice because of things they may have heard. In most cases, they are nothing more than myths.

Based on commission only - WRONG
Financial advice provided through Intellichoice is not based on commission and you can be assured that our qualified financial planners will always be honest and provide unbiased advice. There is no conflict of interests and any recommendations we make for growing your wealth is in your best interests.

High cost of getting financial advice - WRONG
Our unique and innovative financial solution offers everyone, regardless of age and income level, to enjoy financial freedom and pay very little or nothing for any financial advice received through Intellichoice when compared to industry standard. We are very upfront about our fees so you know exactly where you stand at all times. Find out more about our low fee financial planning service by calling 1300 55 10 45 or email info@intellichoice.com.au.

Get rich quick - too good to be true investments - WRONG
If it’s too good to be true, it often is! Financial planning is not about getting rick quickly. Through good advice and informed investment decisions, your financial planner will help build your wealth over an appropriate time frame and in a safe manner that is in your best interests.

Invest in shares only - WRONG
We listen to your needs and provide unbiased and professional advice to help grow your wealth in a safe way. Our holistic approach to creating wealth is to take into account the amount of risk you are willing to take and provide investment strategies (either through property, shares, cash, managed funds, superannuation or mortgage funds), that will help you meet your goals in a safe manner.

Glorified sales people – WRONG
Anyone can go and sell cars, mobile phones or computers, but Australian financial planners are subject to rigorous licensing, education and ongoing professional development standards. The financial planners at Intellichoice are accredited with two of the largest licensees in Australia, which regulate ethical and professional codes of conduct in the financial services industry.

To find out more about getting quality financial advice and how a financial planner from Intellichoice can assist you to grow your wealth and have a comfortable retirement, call 1300 55 10 45 or email info@intellichoice.com.au.

How do investments impact on you - Shares

Shares grow in value over time. Most text books will say that you will require somewhere between 10 and 15 stocks to obtain a diversified portfolio of shares so you can spread your exposure and reduce your risk.

For example, on 31st December 2001, you purchased 9 stocks - Flight Centre, Commonwealth Bank, James Hardie, John Fairfax, Billabong, Qantas, Ten Network, Telstra and Woolworths - to the value of $83,542.40 and you held those stocks until 31st January 2010.

This share portfolio would have increased in value to $111,278.60 - an increase of 33%.

This is good news, but it is not the entire story.

On top of the underlying growth of your investment and the income you receive from your shares (in the form of dividends), do you know how your investments will impact on your tax return?

A simple strategy, such as gearing can make your money work for you and help reduce your tax. Gearing relates specifically to the money you borrow to fund your investments.

Below is a simple scenario showing the difference between investing and not investing.

Based on an income of $50,000 pa with no other income or deductions, you would currently be paying about $9,600 in tax, inclusive of the Medicare levy.

However, if your investment strategy takes into account gearing, the amount of tax you would pay would be reduced to approximately $7,575 – a saving of about $2,025 in tax, while at the same time, your net income increases by $3,033.

The points to highlight are:

1.    Investments will reduce your tax liability
2.    Geared Investments will create a tax saving
        
Where to from here? Many of our clients are becoming aware that the end of financial year is looming. As shown above, it is important that you speak with a knowledgeable financial adviser on the best strategy for your circumstances to reduce your loss to the tax man.

For more information, visit www.intellichoice.com.au or speak to our financial planners on 1300 55 10 45 or email info@intellichoice.com.au.

Disclaimer: This column is provided as general advice only and does not take into account your personal objectives, financial situation and needs. You should always carefully consider these matters and discuss them with a financial planner before you act.

Seek SMSF advice

A self managed super fund (SMSF) may have many benefits, for example, it will give you more control over the fund's investment strategy, there is a lower tax payable and all self managed super funds are protected from bankruptcy and other legal claims, but many Australians don't understand the time, risks and costs involved in operating a SMSF.

A survey conducted by TNS found that more than half of Australians thought you could establish a SMSF with a balance of $50,000 or less. One quarter of respondents thought a balance of $5,000 would be enough to set up their own SMSF.

As a note, if you have less than $200,000 in super, the admin costs would probably make setting up a SMSF uneconomical. You can also expect to pay $1,000 to $1,500 a year on running your own super fund.

There has been an increase in the number of self managed super funds being set up, suggesting that Australian's want to exercise more control over their super. However, research shows that only a third of people consult a professional financial planner to decide whether a SMSF is suitable for their needs.

So if you are thinking of setting up a DIY super fund, please seek advice from a professional financial planner first to ensure that this is the best option for you. Factors such as time, money in administering a SMSF and whether you have the desire and ability to manage the fund for the long term all need to be taken into account. For more information about SMSF's, speak to one of the financial planners at Intellichoice today on 1300 55 10 45.

Getting professional financial advice

Financial advice is a process that will help you meet your goals and dreams through the property management of your finances. Whether you are looking at buying a property, manage and pay down your debts, save for your children's education, build wealth or plan for retirement, getting good, professional and quality financial advice will help you implement a financial plan in order for you to reach those goals.

There are many ways to get information about handling your money, such as newspapers, money or investing magazines, the Internet, friends and family. However, finance and building your wealth is a complex area and you should seek advice from a certified financial advisor. Just as you would go to a doctor or lawyer for their expertise in their area, you should also do the same when it comes to your financial wellbeing.

So how do you know that the financial advice you get is of high standard?

According to the Australian Financial Planning Association (FPA), getting quality and professional financial advice should be based on the following, which your financial planner should go through with you.

• Identify your life goals - short, medium and long term
• A financial planner will become acquainted with your financial background, including your income, debt levels, commitments (for example, home loan or personal loan repayments etc)
• Understands your current situation, needs and what you want to achieve now and in the future
• Prepares a financial plan based on your needs and goals and implements strategies that address your attitude to risk
• Identifies suitable investments and insurance plans for your situation
• Provides annual reviews for your financial plan to ensure it still suits your needs and financial situation

Good quality financial advice will help you in many ways including:

• Gives you greater control over your financial future
• Provides you with a long-term relationship with an expert that will help you reach your goals and is on hand to answer any concerns or issues you may have
• Good quality financial advice will give you a realistic picture of your financial future and how to reach your goals in a safe way
• Provides you with clear information on how to manage risk

 Many people may think it is better to do it themselves and not seek professional financial advice, but the truth is that without professional financial planning knowledge, you may not reach your goals or reap the full benefits.

Many Australian retired couples currently live on less than $20,000 per annum, so make sure you have enough enough for a comfortable retirement. Speak to a qualified financial planner today on 1300 55 10 45 for an obligation free appointment at no cost to you, normally worth $500.

Australians not planning for retirement

Millions of Australians are relying on as little as $322 a week on aged pension when they retire. This is because they have not planned their future properly.

The typical Australian aged 55 - 64 years will have $51,000 at retirement, but they do not realise they will need about $500,000 to fund an income of $38,000 a year for a modest lifestyle.

Make sure you speak to a financial planner about having a comfortable retirement. Don't leave it too late - call 1300 55 10 45 and seek professional advice from a financial planner about having a retirement income stream.

SMSFs spur property investment

Australians are increasingly using self managed super funds (SMSF) to invest in property rather than shares.

According to accountancy firm Chan & Naylor, 'increasing awareness of the potential of SMSFs to borrow and invest is creating new demand for residential property. It seems Australians feel comfortable with property as an investment class,' said CEO Sal Carrero.

Since the GFC, many Australians are questioning whether they could invest their own money better than what their super fund was doing, and this is one of the reasons why SMSFs are growing in popularity.

Furthermore, SMSFs are no longer just reserved for the wealthy, with a minimum of $150,000 super savings enough to set up your own self managed super fund.

If you are interested in setting up your own self managed super fund, need assistance with a SMSF investment strategy or would like more information, speak to one of our experienced financial planners first on 1300 55 10 45 or email info@intellichoice.com.au. Intellichoice also has experienced mortgage brokers to assist with a SMSF home loan if you are looking at buying property through your diy super fund.

What is a self managed super fund (SMSF)?

A self managed super fund (SMSF) is a specialised superannuation trust that can be established for up to four people, for the sole purpose of providing retirement benefits to its members. A SMSF if you own superannuation fund, where you have control of what investments your super fund invests in.

A SMSF needs to have:

• A trust deed: This establishes what the super fund can or cannot do. The trust deed needs to be reviewed regularly to make sure that it is up-to-date.
• A trustee: All members of the fund have to be trustees. You can act as individual trustees, or appoint a company as a trustee, in which case all members need to be directors. Speak to a financial advisor about which is suitable for you.
• An investment strategy: An SMSF investment strategy sets out what the SMSF will invest in and addresses risk, return, diversification, liquidity, cash flow and asset allocation. Seek professional financial advice from a trusted financial advisor first for details on setting out our investment strategy for your super fund.

There are currently over 400,000 SMSFs in Australia and in March 2009, there was nearly $300 billion invested in self managed super funds. This represents about 32% of the whole superannuation industry's investments.

But before you set up a SMSF, you need to take the following into consideration:

• If you have decided to appoint a company as trustee, you will need to register the company to be the trustee and obtain an SMSF trust deed. This can cost you from $800 to $1,500.
• You need to apply for a Tax File Number, an Australian Business Number and establish a bank account in the super fund’s name
• Once this has all been completed, you might like to think about rolling over your existing super accounts into your SMSF. You can also change your payroll details, so that your employer can contribute into the SMSF.
• Appoint an accountant and auditor to prepare your SMSF accounts, tax return and audit every year.
• Once your SMSF has been established, you need to manage it and its investments and keep proper records of all transactions. This will be essential if your SMSF is ever audited by the Tax Office.
• At least in the beginning, you should consider getting advice from a professional financial advisor.

Before you set up a self managed super fund, we recommend that you speak to a qualified financial advisor first to ensure this is the best option for you. Our financial planners are available to answer any queries you may have and help set up your SMSF and investment strategy. Call 1300 55 10 45 or visit www.intellichoice.com.au for more details.

Reduce your tax

It's almost the end of financial year in Australia and we have put together some tips for you to consider to minimise your tax.

http://www.intellichoicefp.com.au/financial-advisor/72-financial-planning-resources/353-reduce-tax-tips-and-tricks.html

You can also speak to a financial planner for more tips on reducing your tax but building wealth at the same time.

Should I have my own self managed super fund?

There are essentially 2 benefits to having your own self managed super fund (SMSF):

1. Cost
Self managed super funds (SMSF) can be very cost effective. A SMSF will cost you anywhere in the range of $1,500 to $2,500 each year to maintain. In addition, there are a number of fixed costs that don't increase regardless of the size of your super fund. For example, the cost of auditing your SMSF and preparing the fund's tax return will still cost the same regardless whether you have $250,000 or $2 million in the super fund.

2. Control over your SMSF
You can control what your SMSF invests in and when you invest, subject to the fund's investment strategy and the technical rules about SMSF investments.

Please remember that a SMSF is not for everyone and we recommend that you seek professional advice from a financial planner first before setting up your own SMSF. A financial planner will be able to advise whether a SMSF suits your needs or whether using an industry superannuation fund or a retail super fund may still provide you with sufficient flexibility and cost-effectiveness.

Strategies to reduce your tax

The two certainties in life are death and taxes.

We do not have a crystal ball to allow us to see when we are going to die, however we do know when our tax is due. The end of the financial year is 30 June 2010. Unlike death when sometimes you are not prepared, you can prepare yourself for the tax man.

In the 2006–07 income year, individuals had $18.8 billion refunded or otherwise paid out after they lodged their income tax return, and $13.5 billion was required to be paid by other individuals to meet their annual tax liabilities.

Were you one of those individuals who contributed $13.5 billion to the federal government because you were not prepared? Or were you someone who felt you should have received a better or bigger tax refund?

What can you do?

1. Determine now, your anticipated earnings for this financial year – wages, commission, bonus, sale of goods or services.
2. Complete an estimate of your tax liability – understand how much you are going to pay.
3. Assess your long term goals and determine if you are happy to continue contributing to the Australian Taxation Office or would you be better off contributing to your own long term investments. In other words have the tax man pay off your debts.
4. Contact a financial advisor to assist in developing a long term strategy to reduce your tax liability and more importantly to help you create wealth.

Examples of some products that can help you reduce tax and at the same time build wealth include:

• Property investment – tax deductible items include interest on borrowings, council rates, body corporate fees, maintenance, management expenses and depreciation.
• Shares – tax deductible items include interest on borrowings and franking credits
• Managed Funds – tax deductible items include interest on borrowings, deferred income and franking credits.
• Superannuation – salary sacrifice, salary packaging and tax deductions available for self-employed individuals.

For more information about ways to reduce your tax payable, or to book an obligation free appointment with one of our qualified financial planners, call +61 7 3624 1900.

Intellichoice Financial Planning ties up with one of Australia's leading investment management groups

Intellichoice Financial Planning is proud to announce an alliance with one of Australia’s leading mortgage investment management group, La Trobe and offer clients the opportunity to invest in Australia’s best Mortgage Fund, as voted by Money Magazine.

A mortgage fund essentially takes investors’ money and uses it to make loans secured by mortgages or buy existing ones. You as an investor receive the net interest payments on those mortgages. These loans can be secured by mortgages over retail, commercial, industrial or residential properties.

Darin Hindmarsh, Managing Director of Intellichoice says ‘investing in a mortgage fund can consistently earn you between 7% and 15% depending on the degree of risk.’

‘This rate of return compares very favourably when compared with other forms of investments. For example, the average return on government bonds is 1.6% and 3.4% based on 1 year and 5 years respectively.’

Intellichoice has formed a relationship with La Trobe because of the strength and stability of their mortgage fund options. Their Pooled Mortgages Option has been recognised as Australian Best Mortgage Fund by Money Magazine, winning the 2010 Best of the Best Award.

A unique feature of the La Trobe Fund is their ‘Select Investments’ which means before you invest, you and your Intellichoice financial planner can review the details of the borrower and the proposed loan, including investment term, interest rate and payment terms together before you make the decision to invest or not.

‘A great feature of investing in a mortgage fund through our alliance partner is that you only need a minimum investment of $1,000, so you have all the advantages of being “the bank”, without having to fund the entire mortgage’ says Hindmarsh.

To find out more about mortgage funds and whether this is the best investment option for you, speak to one of the financial planners at Intellichoice today on +61 7 3624 1900.

10 things I hate about you (things you don't want to hear from your financial planner)

1. You will have to work longer
2. You need to save more
3. You have to live on less
4. You need to take more risk
5. Your family won't be covered in case something happens to you
6. It's not financially viable for me to help you at this stage (I'm not earning enough commission out of you)
7. You have to get another part-time job
8. Invest in shares only
9. Property is not a good invetsment
10. Do as I say, not as I do (my portfolio took a dive)

 All this can be avoided by speaking to a financial planner at Intellichoice who will help you find the right mix of financial strategies. Have peace of mind if the market declines, but you can also reap the rewards when the market is moving higher.

Visit www.intellichoice.com.au to view our range of financial planning services or make an obligation free appointment normally worth $500 with our financial planner. Call 1300 55 10 45 to find out how we can help you achieve your financial goals.

Seeking financial advice

When it comes to your financial future and your superannuation, the advice of a good financial planner should not be underestimated.

Financial planners can help you make the most of your current financial situation, provide financial advice on tax issues related to your investments, and help you lay the foundation for your retirement. However, after the failure of Storm Financial and Opes Prime, the spotlight has been placed on the shortcomings of the financial planning industry and you may be wondering how best to evaluate the financial advice you receive.

When you seek financial advice, it is important to know that your financial advisor has the appropriate skills and experience and that the dealer group he or she is associated with has the ability to deliver the ongoing services you require.

The following questions may be useful in helping you to assess the merits of a financial planner:

1.    Do they have a Financial Services Guide?
All financial planners are legally required to produce a Financial Services Guide (FSG), which gives you an easy to understand explanation of their fee structure and the services they offer. The FSG should enable you to make an informed decision about whether you want to use their services.

2.    Are they, or their company, licensed by the Australian Securities and Investments Commission (ASIC)?
An authorised financial planner must meet the knowledge, skills and integrity standards required by ASIC.

3.    What are their qualifications and experience?
Check that the financial advisor has appropriate qualifications, preferably at least a Diploma of Financial Planning. Ask how long they have been a financial planner and the types of clients they typically work with.

4.    Are they a member of a professional association?
We strongly advise that any financial planner you use is a member of the Australian Financial Planning Association (FPA), the Institute of Chartered Accountants in Australia (ICAA) or the Certified Practising Accountant (CPA). The FPA is the professional body for financial advisers in Australia, while ICAA and CPA are the professional bodies for Accountants in Australia. Members are bound to adhere to Codes of Ethics and strict operating guidelines to protect clients’ rights.

5.    What services do they offer?
Does the adviser only offer investment advice, or do they offer total financial solutions, including insurance, tax, estate planning and so on. Do they have formal ongoing review services? Do they offer investment administration services?

6.    How are they paid for their services?
Find out if they operate on a flat fee, brokerage or commission basis. Ask them to explain all upfront, ongoing and exit fees which might be payable by you (directly or indirectly).

When seeking financial advice, always remember it's your money you are investing. Take the time to evaluate your financial planner's advice and don't be afraid to ask questions. To find out more about the services that a financial planner can offer and how they can help you build wealth, call 1300 55 10 45 or visit www.intellichoicefp.com.au