Graduate Financial Guidance Program
(Building Wealth through Planning)
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What is Financial Planning
Who we are
Australians’ Debt Problem
The Financial Journey
Role of a Financial Adviser
The Program
The Process
Case Study
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
Disclaimer :
The information contained in this presentation is by way of general
information only and has been prepared without taking into account
any person’s individual objectives, financial situation or needs. Before
making any decision to act on recommendations in this presentation, a
person should consider the appropriateness of the information to their
individual objectives, financial situation and needs and if necessary
seek advice from a suitably qualified professional.
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning – What is Financial Planning )
“Financial planning is a holistic approach to
planning for your financial future. It is about
setting short and long-term goals and
developing strategies to achieve those goals”
Source : CPA Australia
Source : CPA Australia
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning – Financial Planning Wheel )
Source : CPA Australia
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning – Who we are )
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Financial Advisers
CPA – Business Consulting
Lending Consultants
PIS – largest Advisers Network
Work closely with Accountants
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
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Australians’ Debt Problem
Strong economy for the past 10 years
Unemployment dropped to 5.3%
Low interest rate/inflation rate
Rising household income; but
Australians savings ratio dropped
from 10% in 70s to -2.3% in 2005
RBA – Australians doubled their debts in
the past 5 years
(National Centre for Social and Economic Modelling)
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
Australians’ Debt Problem
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Where has the money gone ?
No Budget / No Cash flow Planning
Spending instead of Investing
Creating Liabilities instead of Assets
The Power of Compound Interest
Lack of awareness of Financial Planning
and Financial Literacy
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
$ Wealth
Financial Journey
Well-Planned
Winner
Positive Net worth
Good Saver
Enough for
Retirement ?
Age
20
30
40
50
Negative Net Worth
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
60
Financial Disaster
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
?
Graduate Financial Guidance Program
(Building Wealth through Planning)
$ Wealth
Financial Journey
Well-Planned
Winner
Age
20
Changing jobs
High salary increase
Holidays
Entertainment
Savings
30
Career upward
Marriage
Children
Dream Home
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
40
50
Building Wealth
Children Education
Home Renovation
Second property
60
Prepare for Retirement
Downsizing
Children grown up
Lifestyle
Investment
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
$ Wealth
Role of a Financial Adviser
Estate Planning
Retirement Income
Super Savings
Investment Advice
Set Goals
20
Changing jobs
High salary increase
Holidays
Entertainment
Savings
Wealth Protection
Gearing Advice
Home Loan Service
Managed Investment
Business Advice
30
Career upward
Marriage
Children
Dream Home
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Well-Planned
Winner
Tax Effective Investment
Salary Sacrifice
Managed Investment
Investment Loan Service
40
50
Building Wealth
Children Education
Home Renovation
Second Property
60
Prepare for Retirement
Downsizing
Children grown up
Lifestyle
Investment
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Age
Graduate Financial Guidance Program
(Building Wealth through Planning)
$ Wealth
The Goal is to help you to achieve this :
20
Changing jobs
High salary increase
Holidays
Entertainment
Savings
30
Career upward
Marriage
Children
Dream Home
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
40
50
Building Wealth
Children Education
Home Renovation
Second Property
Well-Planned
Winner
60 Age
Prepare for Retirement
Downsizing
Children grown up
Lifestyle
Investment
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
$ Wealth
There is no trick, no magic you only need to:
Well-Planned
Winner
1. start early
2. be discipline
3. Regular investment plan / superannuation strategy
4. Appropriate advice from your trusted Financial Adviser
20
Changing jobs
High salary increase
Holidays
Entertainment
Savings
30
Career upward
Marriage
Children
Dream Home
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
40
50
Building Wealth
Children Education
Home Renovation
Second Property
60
Age
Prepare for Retirement
Downsizing
Children grown up
Lifestyle
Investment
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
$ Wealth
Why Super is one of the best Investment vehicles :
Well-Planned
Winner
1. 9% compulsory contribution - employer
2. Salary Sacrifice to lower personal marginal tax
3. Super earnings are taxed at maximum 15%
4. Allow personal contribution – un-deducted
5. Pension phase earnings tax free
20
6. Super/Pension Pay-out – tax free (subject to legislation 2007)
Age
30
40
50
60
Changing jobs
High salary increase
Holidays
Entertainment
Savings
Career upward
Marriage
Children
Dream Home
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Building Wealth
Children Education
Home Renovation
Second Property
Prepare for Retirement
Downsizing
Children grown up
Lifestyle
Investment
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
$ Wealth
We are your Trusted Financial Advisers :
Well-Planned
Winner
1. PIS/AMM has the largest Financial Advisers Network
2. Full Services suite : Investment, Risk, Super, Lending, consulting
3. Long term relationship – gain your trust
4. Remuneration based on your future success
20
Changing jobs
High salary increase
Holidays
Entertainment
Savings
30
Career upward
Marriage
Children
Dream Home
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
40
50
Building Wealth
Children Education
Home Renovation
Second Property
60
Age
Prepare for Retirement
Downsizing
Children grown up
Lifestyle
Investment
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
The Program
$ Wealth
1. Registration through AMM website
2. General advice through e-mail
3. News update on market, policy changes
4. Seminar on financial planning-related topics
Well-Planned
Winner
5. Set up your regular investment plan/superannuation
6. Minimum initial set up fee
Age
20
Changing jobs
High salary increase
Holidays
Entertainment
Savings
30
Career upward
Marriage
Children
Dream Home
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
40
50
Building Wealth
Children Education
Home Renovation
Second Property
60
Prepare for Retirement
Downsizing
Children grown up
Lifestyle
Investment
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
How to Proceed :
$ Wealth
1. On-line registration through AMM website
2. Keep us informed your work status
Well-Planned
Winner
3. Normally $1,000 initial investments
4. Regular Investments / Super Contributions
Age
20
Changing jobs
High salary increase
Holidays
Entertainment
Savings
30
Career upward
Marriage
Children
Dream Home
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
40
50
Building Wealth
Children Education
Home Renovation
Second Property
60
Prepare for Retirement
Downsizing
Children grown up
Lifestyle
Investment
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
Case Study – Super Power
New Graduate
Starting Salary : $35,000
Salary Adjustments : 10%, 9% and 3.5% p.a. (during the work life)
Salary Sacrifice : 10% to 25% in 40 years at various stages
Inflation : 2.5%
Investment returns in Super : 7.5% p.a. (after tax)
Contribution Tax : 15%
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au
Graduate Financial Guidance Program
(Building Wealth through Planning)
Case Study – Super Power
Salary
Salary at
today's $
Super
Contribution
Salary
Sacrifice
%
Salary
Sacrifice
Earnings
Super
Closing
Today's
Dollar
Yr 1
$35,000
$34,146
$2,678
10%
$2,975
$212
$5,864
$5,721
Yr 2
$38,500
$36,645
$2,945
10%
$3,273
$673
$12,755
$12,141
Yr 3
$42,350
$39,326
$3,240
10%
$3,600
$1,213
$20,808
$19,322
Yr 4
$46,585
$42,204
$3,564
10%
$3,960
$1,843
$30,174
$27,336
Yr 5
$51,244
$45,292
$3,920
10%
$4,356
$2,573
$41,023
$36,259
Yr 36
$338,776
$139,269
$25,916
25%
$71,990
$222,371
$3,236,264
$1,330,408
Yr 37
$350,633
$140,627
$26,823
25%
$74,510
$246,520
$3,584,116
$1,437,471
Yr 38
$362,905
$141,999
$27,762
25%
$77,117
$272,742
$3,961,738
$1,550,168
Yr 39
$375,607
$143,385
$28,734
25%
$79,817
$301,201
$4,371,489
$1,668,778
Yr 40
$388,753
$144,784
$29,740
25%
$82,610
$332,075
$4,815,914
$1,793,594
Professional Investment Services Pty Ltd.
A.B.N. 11 074 608 558
Australian Financial Services Licence No.
234951
Ivan Lee
Authorised Representative
Australian Money Masters
www.money-masters.com.au