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Latest Financial Planning News
Tuesday, 9 February 2010
Non-aligned dealer group Synchron has increased its adviser numbers by 40 per cent with the appointment of 44 new advisers last year. Read more
Tuesday, 9 February 2010
AMP's financial planners have thrown their support behind an approved product list (APL) that does not include any commissions - and fund managers keen to keep their business are fast adjusting to the change. Read more
Monday, 8 February 2010
Planners should take note of how they can help clients combat the illegal early release (IER) of super benefits, following APRA's letter last week to super fund trustees vulnerable to the practice. Read more
Videos
In an environment where interest rates look set to rise, the Decision Makers explore how advisers should be looking at the cash component of their client portfolios. Watch
Tuesday, 23 June 2009
With all the dramas over regulatory reviews parliamentary inquiries association politics and their ... Read more
Current Edition
Welcome to the current edition of The Australian Journal of Financial
Planning.
The aim of this journal is to be the definitive source of reference
material and case studies on the issues facing the ... Read more
Applied Financial Planning
Daniel Liptak says that high inflation is usually associated with an economic environment that is high in fiscal deficits and reeling from severe economic shocks combined with a loss in confidence in the ... Read moreDaniel Liptak says that high inflation is usually associated with an economic environment that is high in fiscal deficits and reeling from severe economic shocks combined with a loss in confidence in the value of money. In this paper, he explores cheap hedging strategies that can protect long-term investments from the effects of inflation, such as treasury inflation-protection securities (TIPS). He also explains why these hedging strategies are at historically low cost and why this has the potential to provide an overlay solution for a fixed income portfolio, for a small cost, with significant upside potential for guarding against any future fat tail event in the next three to five years.
In the previous issue Part I of Matt Christensen's paper he defined Sustainable Investment as an investment philosophy that combines investors' financial objectives with their concerns about Environmental ... Read moreIn the previous issue, Part I of Matt Christensen's paper, he defined Sustainable Investment as an investment philosophy that combines investors' financial objectives with their concerns about Environmental, Social, and Governance issues. He sets out the important research into high net worth individuals (HNWIs) and sustainable investment and what they expect from advisers and product providers. In Part II, he looks into the sustainable investment products and the strategies available to investment practitioners. He the sustainable products' origins and allocations as well as the opportunities and obstacles involved to show that HNWIs can yield market rate returns in sustainable investment
Practice Management
In the last issue David Anderson presented the first part of his paper on the Mercer research on employee retention strategies. In this second part he explores the issues faced by having an aging population ... Read moreIn the last issue, David Anderson presented the first part of his paper on the Mercer research on employee retention strategies. In this second part, he explores the issues faced by having an aging population and looks at how prepared Baby Boomers are for retirement and what their attitudes, beliefs and expectations are regarding leaving the workforce. He looks into how financially aware and prepared they are for this time in their life and most importantly, whether they have had, or plan to have, discussions with their employers on their plans for retirement.
Russel Hannah believes that the most valuable asset of businesses are its people and without key individuals most small to medium-size businesses (SMEs) are unlikely to reach their full potential. This ... Read moreRussel Hannah believes that the most valuable asset of businesses are its people, and without key individuals, most small to medium-size businesses (SMEs) are unlikely to reach their full potential. This is one important reason why these companies must have a documented contingency plan in place in the event an imporant person exits the company. He outlines the consequences of not having a contingency plan and the crucial role that financial advisers play in project managing contingency them for the different types of exit strategies possible.
Superannuation and Retirement Planning
For many Australians retirement planning is a distant thought. According to Dr Lester Wills many studies have already shown that a majority of us are not planning for retirement properly. In his paper ... Read moreFor many Australians, retirement planning is a distant thought. According to Dr Lester Wills, many studies have already shown that a majority of us are not planning for retirement properly. In his paper, he outlines the attitude most people have about saving for their retirement. He also lists a number of behavioural and psychological reasons why people are resistant to saving now for a comfortable future, something financial planners would be useful to take into consideration when motivating their clients to save for their retirement.
The relevance of financial planners is under increasing scrutiny from investors and regulators. APRA's June 2009 paper Investment performance ranking of superannuation firms questions the value of traditional ... Read moreThe relevance of financial planners is under increasing scrutiny from investors and regulators. APRA's June 2009 paper Investment performance ranking of superannuation firms questions the value of traditional managed funds and pose important questions for financial planners. In response to the paper, Tony Rumble stress tests different forms of capital protection and assesses their risks and benefits to demonstrate how each one can be used with maximum efficiency. He also shows how advisers can select and implement prudent protection for various client risk profiles, and why this will be key to building portfolios using a core + satellite approach; and how and why key asset classes for the next five years demand the inclusion of protection as part of prudent portfolio construction - which may involve high rotation of satellites around a longer term core.
Taxation Planning and Estate Planning
The Labour government's new R&D tax credit program seeks to motivate Australian companies with additional incentives to put more resources into research and development activities. The decision to commit ... Read moreThe Labour government's new R&D tax credit program seeks to motivate Australian companies with additional incentives to put more resources into research and development activities. The decision to commit $1.4 billion on the R&D tax credit program over the next four years confirms the integral role that research and development plays in encouraging businesses to be more innovative, resulting in ideas and products that enable them to prosper and increase their competitive advantage globally. Tracey Murray details how companies can position themselves to achieve maximum tax concessions for investments in innovation.
Continuous changes made to the superannuation system limitations on annual super contributions and a backlash against complex and investment structures due to the global financial crisis are a few reasons ... Read moreContinuous changes made to the superannuation system, limitations on annual super contributions and a backlash against complex and investment structures due to the global financial crisis are a few reasons why Tony Di Girolamo believes there is a demand for clear and simple investment products such as bonds. In this article he sets out the tax advantages in estate planning and self managed super funds and why financial planners should consider investment bonds in their clients' retirement savings and estate planning strategies.
Consumer and Debt Management
The RBA believes the Australian housing market wouldn't experience catastrophic effects like those of other OECD countries especially the US. According to their numbers house prices are no longer overvalued ... Read moreThe RBA believes the Australian housing market wouldn't experience catastrophic effects like those of other OECD countries, especially the US. According to their numbers, house prices are no longer overvalued and mortgage repayments are back to historic averages. Their figures also show there's a housing shortage - despite the ABS figures revealing that 800,000 private homes were unoccupied on Census night. In this paper, Steve Keen digs deeper to look at the statistics to see how accurate a picture it really paints.
Risk and Life Insurances
Once upon a time insurance lived in the realm of specialist risk advisers only. Today through innovation new technologies and necessity insurance products have evolved and are simpler to understand ... Read moreOnce upon a time, insurance lived in the realm of specialist risk advisers only. Today, through innovation, new technologies and necessity, insurance products have evolved and are simpler to understand and explain, making it more accessible to advisers and their clients. ING's Mark Patterson makes a convincing argument for insurance, citing initiatives like IFSA's LifeWise campaign helping to put insurance at the forefront of people's minds and making it a valid choice for advisers looking to diversify their business in a challenging economic environment.
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