graduate financial guidance program (building wealth through planning) what is financial planning...

Graduate Financial Guidance Program(Building Wealth through Planning)

• What is Financial Planning• Who we are • Australians’ Debt Problem• The Financial Journey • Role of a Financial Adviser • The Program • The Process• Case Study

Professional Investment Services Pty Ltd.A.B.N. 11 074 608 558Australian Financial Services Licence No. 234951

Ivan LeeAuthorised Representative

Australian Money Masterswww.money-masters.com.au


Disclaimer :

The information contained in this presentation is by way of general

information only and has been prepared without taking into account

any person’s individual objectives, financial situation or needs. Before

making any decision to act on recommendations in this presentation, a

person should consider the appropriateness of the information to their

individual objectives, financial situation and needs and if necessary

seek advice from a suitably qualified professional.




Graduate Financial Guidance Program(Building Wealth through Planning – What is Financial Planning )




Source : CPA Australia

“Financial planning is a holistic approach to planning for your financial future. It is about

setting short and long-term goals and developing strategies to achieve those goals”


Graduate Financial Guidance Program(Building Wealth through Planning – Financial Planning Wheel )





Graduate Financial Guidance Program(Building Wealth through Planning – Who we are )

• Financial Advisers• CPA – Business Consulting• Lending Consultants • PIS – largest Advisers Network • Work closely with Accountants





Australians’ Debt Problem• Strong economy for the past 10 years • Unemployment dropped to 5.3% • Low interest rate/inflation rate• Rising household income; but• Australians savings ratio dropped

from 10% in 70s to -2.3% in 2005• RBA – Australians doubled their debts in

the past 5 years (National Centre for Social and Economic Modelling)





Australians’ Debt Problem

• Where has the money gone ? • No Budget / No Cash flow Planning • Spending instead of Investing• Creating Liabilities instead of Assets• The Power of Compound Interest• Lack of awareness of Financial Planning

and Financial Literacy





Financial Journey




Age

$ Wealth

6020 4030 50

Financial Disaster

Good Saver

Well-PlannedWinner

Positive Net worth

Negative Net Worth

?Enough for

Retirement ?


Financial Journey




Age

$ Wealth

6020 4030 50

Well-PlannedWinner

Changing jobsHigh salary increaseHolidaysEntertainmentSavings

Career upwardMarriageChildrenDream Home

Building WealthChildren EducationHome RenovationSecond property

Prepare for RetirementDownsizingChildren grown upLifestyleInvestment





Age

$ Wealth

6020 4030 50

Well-PlannedWinner



Building WealthChildren EducationHome RenovationSecond Property


Super SavingsInvestment Advice

Set Goals

Wealth ProtectionGearing Advice

Home Loan ServiceManaged Investment

Business Advice

Tax Effective InvestmentSalary Sacrifice

Managed InvestmentInvestment Loan Service

Estate PlanningRetirement Income

Role of a Financial Adviser





Age

$ Wealth

6020 4030 50

Well-PlannedWinner





The Goal is to help you to achieve this :





Age

$ Wealth

6020 4030 50

Well-PlannedWinner





There is no trick, no magic you only need to:

1. start early

2. be discipline

3. Regular investment plan / superannuation strategy

4. Appropriate advice from your trusted Financial Adviser





Age

$ Wealth

6020 4030 50

Well-PlannedWinner





Why Super is one of the best Investment vehicles :

1. 9% compulsory contribution - employer

2. Salary Sacrifice to lower personal marginal tax

3. Super earnings are taxed at maximum 15%

4. Allow personal contribution – un-deducted

5. Pension phase earnings tax free

6. Super/Pension Pay-out – tax free (subject to legislation 2007)





Age

$ Wealth

6020 4030 50

Well-PlannedWinner





We are your Trusted Financial Advisers :

1. PIS/AMM has the largest Financial Advisers Network

2. Full Services suite : Investment, Risk, Super, Lending, consulting

3. Long term relationship – gain your trust

4. Remuneration based on your future success





Age

$ Wealth

6020 4030 50

Well-PlannedWinner





The Program

1. Registration through AMM website

2. General advice through e-mail 3. News update on market, policy changes

4. Seminar on financial planning-related topics

5. Set up your regular investment plan/superannuation

6. Minimum initial set up fee





Age

$ Wealth

6020 4030 50

Well-PlannedWinner





How to Proceed :

1. On-line registration through AMM website

2. Keep us informed your work status

3. Normally $1,000 initial investments

4. Regular Investments / Super Contributions





Case Study – Super Power

New Graduate

Starting Salary : $35,000

Salary Adjustments : 10%, 9% and 3.5% p.a. (during the work life)

Salary Sacrifice : 10% to 25% in 40 years at various stages

Inflation : 2.5%

Investment returns in Super : 7.5% p.a. (after tax)

Contribution Tax : 15%





Case Study – Super Power

SalarySalary at today's $

Super Contribution

Salary Sacrifice

%Salary

Sacrifice EarningsSuper

ClosingToday's Dollar

Yr 1 $35,000 $34,146 $2,678 10% $2,975 $212 $5,864 $5,721

Yr 2 $38,500 $36,645 $2,945 10% $3,273 $673 $12,755 $12,141

Yr 3 $42,350 $39,326 $3,240 10% $3,600 $1,213 $20,808 $19,322

Yr 4 $46,585 $42,204 $3,564 10% $3,960 $1,843 $30,174 $27,336

Yr 5 $51,244 $45,292 $3,920 10% $4,356 $2,573 $41,023 $36,259

Yr 36 $338,776 $139,269 $25,916 25% $71,990 $222,371 $3,236,264 $1,330,408

Yr 37 $350,633 $140,627 $26,823 25% $74,510 $246,520 $3,584,116 $1,437,471

Yr 38 $362,905 $141,999 $27,762 25% $77,117 $272,742 $3,961,738 $1,550,168

Yr 39 $375,607 $143,385 $28,734 25% $79,817 $301,201 $4,371,489 $1,668,778

Yr 40 $388,753 $144,784 $29,740 25% $82,610 $332,075 $4,815,914 $1,793,594

graduate financial guidance program (building wealth through planning) what is financial planning...

Documents

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