“Compared to many professions, financial advice as it is becoming, is relatively new. Founded by a combination of broking, accounting, insurance, and legal, combined with a world class superannuation system, the proposition of the adviser continues to evolve, moving from ‘below the line’ (money, products, investments etc) to ‘above the line’ (advice and strategy to help people make smart decisions about money) – or, as I say, from product to people, and from money to meaning.
As our population ages and accrues wealth, conversations shift from accumulation of assets to the focus on retirement planning and the strategic advice provided to prospective retirees. People are living longer, which means that their retirement savings may well need to last longer. Retiring with confidence is important.
As the industry evolves and the profession emerges, visionaries and leaders find solutions out of problems and black spots. Until recently, financial advisers have had to deal with the deck of cards they have. Concerned about fixed term or lifelong annuities, advisers have tended to focus on retirement solutions on account-based pensions (ABPs). The issue with traditional solutions has been loss of capital due to premature death (in the case of annuities), or expiring well after your money does (in the case of an accountbased pension).
Well, retirement planning in Australia has entered a new world with a number of lifetime income options. Efficient and effective investment-linked and Group Self Annuitised (or GSA) lifetime annuities have only become available after legislation has made it possible to invest superannuation money into these products in 2017.
These new products offer “longevity insurance” like guaranteed life annuities, but without locking in low investment returns, and allow the same investment choices as superannuation members have enjoyed through ABPs. By intergenerationally transferring the balances of members who pass away to survivors, they allow the survivors to enjoy a much higher standard of living at a lower risk of running out.
I believe the advice proposition of the future is moving to adviser, coach, educator, mentor, project manager. Combining strategies to increase income, decrease expenses, reduce taxation liabilities, protect assets, ensure security in any catastrophe – in order to achieve all that’s important to them and to live their best possible life… People want to live their best, with confidence. They want to live rich, not to die rich.
I commend the work of David, Peter, Jim and their team in the vision and leadership they have shown to painstakingly drive this necessary and important change into our market, for the betterment of current and future retired Australians.
Important reading for any serious financial advisor in Australia.”
David Haintz
AM Principal
Global Adviser Alpha Pty Ltd
