The Top 5 Reasons Why Not Having a Retirement Plan Can Cost You More

By Simon Cooper
October 15, 2019

One of the common things we hear from clients is that financial advice costs too much. However, what we always say is – compared to what?

Over the years we have spoken to many people who have spent far more by not getting the right financial advice in the first place. In this blog, we look at the top 5 reasons why a lot of Australians end up spending more by not having a financial plan in place.

  • Not Having Super or Investments Invested Correctly
    Your super forms part of your savings for retirement. It is important that you are aware of how much super you’re getting, how many super accounts you have, whether they are being invested correctly and what insurance is bundled in with your current super account. Having several super accounts could mean you’re paying multiple fees and charges, which may reduce your overall retirement income.
  • Not Being Insured Correctly
    Our experience with clients also shows that most clients are unaware that they have insurance bundled in with their super. Whilst many insurance policies are designed to ensure every day Australians have basic level cover, we find that many insurance policies prove to be inappropriate for peoples’ needs as they may be under insured or maybe paying for insurance that they wouldn’t be able to claim on. Not being insured properly could equate to hundreds of thousands to millions in missed insurance payouts.
  • Not Monitoring Extra Bank Interest Charges and Fees
    Far too many Australians are paying too much in bank interest and are not able to reduce their debt in the most effective way. By working closely with a financial planner, you are able to assess any risks that you are up against and to structure reducing your debt in the most cost-effective way so there is more money in your back pocket and not the banks. Over the lifetime of a mortgage could equate to hundreds of thousands in extra money that you pay to the banks.
  • Not Being Setup In The Most Tax Effective Way
    Whilst it is important that we all pay our fair share of tax, you have the right to arrange your financial affairs to keep your tax to a minimum within the bounds of the law. Many Australians are losing hundreds of thousands of dollars through ineffective or no tax planning.
  • Not Having A Will or Estate Plan
    While we may not always like to think about it, death is a certainty for everyone and it is absolutely vital to look at your will or estate plan as part of your retirement planning. Having a will or estate plan allows you to choose who benefits from your estate upon your death and ensure any tax payable is minimised. As opposed to your estate being looked after by a government agency and your loved ones missing out money that was intended for them.

Your Roadmap to Financial Success
At Forward360, we give you an individualised road map to success that’s designed specifically for you. In most cases, the financial advice fees are charged to your superfund so if this is the case, there aren’t any out of pocket expenses at all. Our team is here to understand your goals and what you are working towards and take you by the hand to help you achieve that.

Simon Cooper

Co-Founder, Managing Director, Financial Adviser

Simon is a financial advisor who takes his work seriously. He ensures that all of his clients receive the best possible advice, so that they can reach and exceed their financial goals, both personally and professionally. Simon has been in the business for many years, and has a wealth of experience to share with his clients. He is known for being friendly and approachable, and always puts the needs of his clients first. Simon Cooper is an Authorised Representative of Reedy Capital Pty Ltd (AFSL No. 495539), Authorised Representative Number 1248807 and a financial adviser at Forward360.

Get our best strategies, tools, and support sent straight to your inbox

This field is for validation purposes and should be left unchanged.