Thursday, August 24, 2023


Mackay and Whitsunday Life

What is a Financial Planner?

There are two main things a Financial Planner does, ‘Strategy Advice’ and ‘Product Advice’.

Strategic Advice involves guiding people on how their financial future looks now and the options available to improve their financial position. It’s looking at the pros and cons of various options and weighing up the cost versus benefits to guide people to the best option for their financial situation and age.  

If you have large debts and a young family you want to protect, it’s guidance on the different types of insurances available and which ones suit your situation.  

If you’re looking to build wealth in the run up to retirement it’s unpacking whether negative gearing, super or paying off your home loan is the best option.

Questions like: Should I be using an offset account or a redraw to reduce my mortgage and what are the long-term tax ramifications? Should I be taking a pension from my super even if I’m not retired as I’ve heard there are tax benefits? Will I have enough to retire comfortably, and will I get any assistance form the government?  How do I protect my nest egg?

Throughout our lives most people will purchase financial products, these might be simple like bank accounts or credit cards or complex like home loans, superannuation, insurance or pensions.  

The key here is getting advice on what type of product suits you. i.e., Now I know what type of insurance package I want to purchase, which insurer offers the most competitive premium for my age and occupation?  

What type of superannuation products suits my situation, is it an industry super, a retail super or a Self-Managed Super Fund?  

Can my existing super pension product facilitate a protection strategy against a major market crash? Are the product fees I’m currently paying competitive?  

Another key issue to consider when getting product recommendations is what range of products the adviser can recommend. It doesn’t take Einstein to work out that if you talk to an adviser employed by a bank or insurance company generally, they are going to recommend their company’s super, investment, insurance and loan products even if other companies have products better suited to your situation.

In summary Financial Planners can guide people in all sorts of areas to make better decisions to help them achieve their financial goals. The key is in finding a Financial Planner you can relate to who is experienced and can recommend the right strategy and products from a range of different providers.  

If you think you could benefit from a discussion with a Financial Planner, give us a call.  There’s no obligation and all fees are spelled out clearly in advance.  If you’re not sure, try our Financial Fitness Survey on our website at as it’s a simple free tool to help assess your financial strength.

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