Financial planning is about making a difference. Making a difference of just one dollar today could be worth a lot more in the future. My goal is to help each and every client find the differences that will lead to a secure and comfortable lifestyle.Richard PillayFinancial Planner SSFS
Benefits of financial planning
A common question is; 'Why would I need to see a financial planner?' There are a number of ways that a professional financial planner can help you, particularly in the lead-up to and throughout your retirement. Let’s look at six of the most common areas where a planner may be able to help.
Expert advice in your scheme choices
It can be daunting trying to make investment decisions in isolation and that’s where getting the right financial advice comes in. State Super Financial Services (SSFS) was established over 20 years ago by the Trustees of the State Super schemes to provide current and former public sector employees and their families with expert advice and decision support in their defined benefit options and investment strategies. You can meet with one of our professional financial planners without cost or obligation. At SSFS product and advice fees apply only when you decide to invest and partner with us on an ongoing basis. Our approach to financial planning ensures our financial planning advice is highly accessible and you don't feel rushed when making decisions on complex financial issues.
Generally, when we are working, our income comes primarily from our salary. Income in retirement is likely to come from a combination of sources, such as income streams, social security and earnings from investments or a part time job.
A financial planner can help you put together a plan to replace your salary once you stop work. For those of us who will receive a lump sum rather than a pension from our superannuation fund, regular income in retirement can be very important.
No one likes paying tax. While you’re working, your SSFS financial planner can show you different strategies which can reduce the amount of tax you’re paying while significantly boosting your super savings.
When you come to retire and don’t have a regular salary it’s even more important to minimise the amount of tax that you have to pay on your income. Changes to the superannuation system, that allow tax-free income after age 60 from taxed superannuation funds, have altered the retirement planning landscape. Some traditional income sources such as fixed interest investments like term deposits are generally fully taxable and have become significantly less attractive in retirement.
Whether you are retiring before or after age 60 your SSFS financial planner will be able to discuss a range of options for you to consider such as superannuation income streams that can provide a regular income and can help you manage tax.
Understanding the complexity of the social security system is difficult. However, after assessing your situation, your financial planner can help you determine if you may be eligible for social security support. Importantly, as your circumstance change over time, social security entitlements may also change.
Security and peace of mind
A basic rule of sound investing is to spread your money over a range of different investments. This is called diversification. It’s like the old saying: 'Don’t put all your eggs in the one basket'.
History shows that different types of investments, and investment managers, perform better than others at different times for different reasons. That’s why diversifying your investments can assist with:
- Reducing the total amount of risk in an investment portfolio;
- Optimising the return you’re likely to get for the risk taken; and
- Smoothing out the volatility – the ups and downs of investment returns over time.
Having a diversified selection of investments also avoids the pitfalls of trying to time the market. Your planner will help you develop a plan that is right for your circumstances and suggest a range of investments that suit your financial and lifestyle objectives.
As you get older, you’ll probably find that your needs will change. At the same time, taxation, social security and superannuation legislation are also constantly evolving. An ongoing relationship with your planner means they are there to assist you over the long-term. It's worthwhile remembering that many people considering retirement today will be retired for more than 25 years, and so ongoing support is a vital part of your long-term planning.