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Help! I think I need a financial planner, or a broker, or something... (1 Viewer)

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Hello everyone,

I'm trying my hardest to understand financials, and thats why I joined here. I wanted to know how to make my hard earned, earn hard. I'll be the first to admit though, I'm not very smart with dollars. My smarts happen to be in other areas, of which I get paid handsomely for.

However, it is no longer just me. Just over 12 months ago I married my heavily pregnant partner, and 1 month later we had our first child. Yep, just scraped in on that one.

So I have been thinking more and more about what would happen to them if the inevitable happened. If I was struck down and unable to work or worse still lost my life how would they cope?

Our situation is as follows;
We are both 33.
I work full time, she is a full time student and mother. We have one child but planning another.
2 investment houses - Both in my name and border line neutral/positively geared.
Family home (also in my name) with a fairly heavy mortgage, but comfortably sustainable on current income
Income from employment (including super etc) is just over $180k/p.a. + bonus. Expect it to increase later this year when I go back to fifo. Currently working out of Perth City.

I'm also currently trying to sort my super out. I have about 4 or 5 I think, but wanting to roll it into one.

The problem I am having is who do I see about insurances (life, income, etc) and how do I know I am not going to be underinsured or just not covered due to a technicality.

If I passed away, I would really like the houses to be payed off. I would like my wife and child(ren) to live as comfortably as possible with out me around. I would like an income for my wife so she could continue to look after the kids and complete her study if she desired.

Ideally, financially I would like it to be as if I was still here for a long time.

I dont even know if you can get that kind of cover? I dont know if I am being unrealistic? I dont even know where to go to get it sorted. A good accountant? Some kind of insurance broker? A financial planner?


Would anyone be able to point me in the right direction?

VG
 

Trembling Hand

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Would anyone be able to point me in the right direction?

Yeah take a deep breath and relax. Unless you are a fifo into a coal mine in China you are in no hurry. Just do a google search for a financial advisor in your area of Perth.

And pay off debt as soon as possible. That would surely give you the most bang for your buck....... even if you don't die next week. :)
 
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... Would anyone be able to point me in the right direction?

VG

You've worked it out already.
So just implement the plan.

She'll survive on Centrelink allowances, if the house (PPOR) is freehold.
Therefore get enough life insurance to cover one mortgage.

Then just hope you live! :)

P.P.S. When you roll the super into one, be sure you pick the best one. ;)
 
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Everything you described is doable, and no, Centrelink isn't enough for family you leave behind... Life insurance is cheap, there's no need to be tight with it.

Do what Trembling said, look up either a Certified Financial Planner or someone at an FPA Professional Practice in your area on the Financial Planning Association of Australia website.

You don't need to be a CFP to answer your questions, but for someone with no idea where to start they'll be able to sort you out or put you on the right track.
 

Trembling Hand

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The other thing is most industry super funds offer some form of life insurance. Probably cheaper than buying a retail policy.
 
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The other thing is most industry super funds offer some form of life insurance. Probably cheaper than buying a retail policy.

The golden days of cheap group life policies are at an end. Most are hiking premiums MASSIVELY, and automatic acceptance levels have been slashed or removed, so if you need medical underwriting anyway then you may as well go with a retail policy through an adviser.

For what it's worth, until we sorted out our own insurance recently, I had my wife insured through Australian Super. Her premiums after their most recent changes were as expensive as the retail policies we took out with Macquarie Life, and with none of the extra features we got.
 

So_Cynical

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Do all the insurances through your super fund, i cancelled one of my insurances the other day, AustSuper has 3 separate insurance covers as i imagine they all do.

  • Life
  • TPD (Total and Permanent Disability)
  • Income

As much or as little as you want.
 
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Centrelink isn't enough for family you leave behind... Life insurance is cheap, there's no need to be tight with it ...

Yes, I am tight! :p:

But what I haven't paid into life insurance premiums is in my estate.
I'm only 61, don't plan on dying anytime soon! :)

When I do die, I leave half a freehold PPOR, plus Super,
plus a dozen books on Chess (some of them good).
 
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Hi everyone!

Thank you so much for your replies.

I tried to answer everyone in a multi quote reply thing but its obviously limited to 5 quotes to prevent mamoth posts, which is a good idea.

Trembling Hand & pilots: I didnt mean to come across as in a panic but I took a deep breath anyway :D Thank you for your advice and I think thats all I needed to know, that a financial advisor would be someone I am looking to talk to. As for paying off dept, well I am trying. After the purchase of our house for living in I was quite happy to finally have my accounts set up how I wanted. That is a line of credit, 100% offset account, and re-draw on the home loan itself. Re-draw sounds like I am drawing down all my hard earned but I can assure you I am not. I just find it easier to have everything going into my offset account to save interest and use the home loan as a savings account. If we want something we decide to take a bit each month from our offset and place it onto the home loan until we reach our target. Not sure if thats the best way to do things but I figure its like leaving it in the offset with out having to worry about not spending it by accident.

burglar & Vixs: I think I might side with Vixs on this one :D no offence burglar, I know where you're coming from. No point paying for something that is not going to be of any benifit. I'm guessing there is probably just as many people over insured as there is under insured? I've not looked into what all this is going to cost me, but I probably have other unnecessary expenses that are more worthy to slaughter. Thanks for the web site Vixs. I've just opened it in another tab and will have a squiz at it in a tick :)

All of you mentioned the super, getting a right one and also that they offer some form of TPD/Life/Income insurance in the fees.

I'm considering my employers nominated super fund. Its with AMP I think, and if I go with them my employer will pay the fee's. I've never heard of that before but it sounds like a good deal.

Oh well I just picked up my performance advice which tells me what my payrise/bonus will be. I wanted to say what the value of the super fees were they would chip in. I didnt notice but they also give you "Group Life Insurance Cover - Premium available through *employer* superannuation plan provided to all employees". I'm not sure if that means I have to put my super into AMP to get the life insurance cover as well, but I'm going to look into this and give it a serious thought.

Super plan admin fee's = $200
Group Life Insurance cover = $890

I think if I go that route I can then amend the insurance cover with the other stuff I want. Maybe they will let me increase the cover and pay extra. I will be sure to take this to the person I go to for advice.

Its better to pay for advice yeah?

Oh and burglar, I had to look up what freehold meant! I understand now but found something interesting about Canbera.

Residential property in Australia is usually freehold, unless it is in Canberra (Australian Capital Territory). Freehold means the buyer owns the house and land in perpetuity (it remains in that person’s name “forever”). In the Australian Capital Territory, the land on which the house or unit is located is leased to the Purchaser for a 99 year period under a “Crown Lease”. At the end of that period, the Crown Lease will usually be extended for the payment of an administration fee.

Thanks everyone, I feel like I have a sense of purpose tomorrow. Will be on the phone all day speaking to a CFP or FPA endorsed practice no doubt :)

VG
 
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Yes, I am tight! :p:

But what I haven't paid into life insurance premiums is in my estate.
I'm only 61, don't plan on dying anytime soon! :)

When I do die, I leave half a freehold PPOR, plus Super,
plus a dozen books on Chess (some of them good).

It's a very different scenario leaving a spouse behind with a house paid off in your 60s, than leaving your wife and kid behind in your 20s or 30s with debt and no money to support them.

I can see why you wouldn't have insurance at your age though :). The only people really holding insurance into their 60s are people late to the party paying off debt, or people using insurance policies as estate planning tools.
 
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Hi everyone!

Thank you so much for your replies.

I tried to answer everyone in a multi quote reply thing but its obviously limited to 5 quotes to prevent mamoth posts, which is a good idea.

Trembling Hand & pilots: I didnt mean to come across as in a panic but I took a deep breath anyway :D Thank you for your advice and I think thats all I needed to know, that a financial advisor would be someone I am looking to talk to. As for paying off dept, well I am trying. After the purchase of our house for living in I was quite happy to finally have my accounts set up how I wanted. That is a line of credit, 100% offset account, and re-draw on the home loan itself. Re-draw sounds like I am drawing down all my hard earned but I can assure you I am not. I just find it easier to have everything going into my offset account to save interest and use the home loan as a savings account. If we want something we decide to take a bit each month from our offset and place it onto the home loan until we reach our target. Not sure if thats the best way to do things but I figure its like leaving it in the offset with out having to worry about not spending it by accident.

burglar & Vixs: I think I might side with Vixs on this one :D no offence burglar, I know where you're coming from. No point paying for something that is not going to be of any benifit. I'm guessing there is probably just as many people over insured as there is under insured? I've not looked into what all this is going to cost me, but I probably have other unnecessary expenses that are more worthy to slaughter. Thanks for the web site Vixs. I've just opened it in another tab and will have a squiz at it in a tick :)

All of you mentioned the super, getting a right one and also that they offer some form of TPD/Life/Income insurance in the fees.

I'm considering my employers nominated super fund. Its with AMP I think, and if I go with them my employer will pay the fee's. I've never heard of that before but it sounds like a good deal.

Oh well I just picked up my performance advice which tells me what my payrise/bonus will be. I wanted to say what the value of the super fees were they would chip in. I didnt notice but they also give you "Group Life Insurance Cover - Premium available through *employer* superannuation plan provided to all employees". I'm not sure if that means I have to put my super into AMP to get the life insurance cover as well, but I'm going to look into this and give it a serious thought.

Super plan admin fee's = $200
Group Life Insurance cover = $890

I think if I go that route I can then amend the insurance cover with the other stuff I want. Maybe they will let me increase the cover and pay extra. I will be sure to take this to the person I go to for advice.

Its better to pay for advice yeah?

Oh and burglar, I had to look up what freehold meant! I understand now but found something interesting about Canbera.



Thanks everyone, I feel like I have a sense of purpose tomorrow. Will be on the phone all day speaking to a CFP or FPA endorsed practice no doubt :)

VG

Good stuff. They'll be able to steer you in the right direction with your super and insurance. All the best VG. :xyxthumbs
 

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