Someone not too expensive, she just finished high school last year.
An advisor will just take a cut and reduce her returns.
Tell her to put the money into an industry fund and set it on high returns, not balanced.
An advisor will just take a cut and reduce her returns.
Tell her to put the money into an industry fund and set it on high returns, not balanced.
Vixs, not sure why Knobby's suggestion was 'ridiculous' for someone who has just left school?What a ridiculous comment. What about the value add outside investment returns? How much can I salary sacrifice without affecting my lifestyle? Should I employ a TTR pension? How long will it take to get a withdrawal? What am I covered for insurance-wise? What should I be covered for under a fully-underwritten policy? Where is my money invested? Are my funds liquid?
A lot of people could benefit from retirement planning.
There's plenty of information available for free. Super is not difficult to understand. Start with the government websites.Also, its because she doesn't understand it at all (super).
Vixs, not sure why Knobby's suggestion was 'ridiculous' for someone who has just left school?
How much do you imagine she will have to invest? I interpreted Knobby's suggestion as an interim measure while the girl builds up some funds.
Discussion about a TTR pension for a 17 year old??? Successive governments will almost certainly change the rules on Super multiple times before she's going to be at all interested in such a scheme.
My recall might be faulty, but I think you're a financial adviser yourself, so understandably defending your capacity to add value for clients. Fair enough, but I'd suggest more value can be added when this young person has actually saved some money first.
An advisor will just take a cut and reduce her returns.
Tell her to put the money into an industry fund and set it on high returns, not balanced.
Vixs, not sure why Knobby's suggestion was 'ridiculous' for someone who has just left school?
How much do you imagine she will have to invest? I interpreted Knobby's suggestion as an interim measure while the girl builds up some funds.
Discussion about a TTR pension for a 17 year old??? Successive governments will almost certainly change the rules on Super multiple times before she's going to be at all interested in such a scheme.
My recall might be faulty, but I think you're a financial adviser yourself, so understandably defending your capacity to add value for clients. Fair enough, but I'd suggest more value can be added when this young person has actually saved some money first.
Btw, if you're disposed to so comment, what would you charge for comprehensive assessment and financial plan? Examples I've seen are not less than $1000. Usually closer to $5000.
There's plenty of information available for free. Super is not difficult to understand. Start with the government websites.
You might also consider that another reason you have received few replies is that most people on this and similar forums don't actually use financial advisers.
I agree, Julia. From reading the OP, it sounds more like she's looking for basic financial advice (I think this should be taught in school, but I digress). At 17/18, and assuming she is going to continue her studies her work will likely be low paid casual stuff like bar work. This is Sydney, and after living expenses, it's unlikely there will be much in the kitty at the end of the week. It seems a bit premature to be discussing things like salary sacrifice etc.
Her employers were happy to direct the compulsory contributions to her existing account with R.E.S.T.
We also encourage our daughter to make a personal contributions each year to qualify for the government co-contribution. Our daughter is now in her early 20's and has established a nest egg that is growing in an Industry Managed fund that outperforms the comparative fee harvesting funds. We are confident that by the time she reaches retirement she will have accumulated far more than we have.
For what it is worth, I concur with the above posts. I will provide an example to support this approach.
Our daughter started working a few shifts each week as a "check-out chick" at one of the supermarket chains, when she was in year 10. With weekend shifts the chain was obliged to pay superannuation from time to time so a superannuation account was opened up with R.E.S.T. After 2-3 years more (high school and TAFE) our daughter entered into an apprenticeship. Her employers were happy to direct the compulsory contributions to her existing account with R.E.S.T.
We also encourage our daughter to make a personal contributions each year to qualify for the government co-contribution. Our daughter is now in her early 20's and has established a nest egg that is growing in an Industry Managed fund that outperforms the comparative fee harvesting funds. Our daughter can alter the investment strategy from time to time to low risk or high risk as she feels appropriate. We are confident that by the time she reaches retirement she will have accumulated far more than we have.
Earlier I suggested studying the websites of ASIC and the ATO. The latter has detailed information about the government co-contribution. Anyone who didn't have their ears and eyes closed would be aware of this. It has been referred to on many, many occasions over the last several years.Can i ask how you learnt or how she learnt about the government contribution and things like that?
For heaven's sake, if teachers were to teach everything the lazy public declined to find out for themselves, they'd be working 24 hours a day. I don't think anyone would disagree that basic financial literacy should be fundamental in anyone's education, but given the Australian literacy and numeracy rate in the most basic terms is abysmal, we probably need to focus on that before providing information about superannuation to school children. Recently it was reported that fifty percent of the Tasmanian population is illiterate!!Her main problem was "Why dont they teach us this in school."
Perhaps the education system also needs to focus on the removal of superfluous apostrophes.We all know why, the education system is outdated and if EVERYONE was financially literate, no-one would clean toilets. Toilets need cleaner's, so the education system creates workers not entrepreneurs.
Well, it might be good for her to begin to understand that one is generally rewarded for the effort one is prepared to engage in.She can use google and the internet but to be honest, i know she wont put the time in like i have.
Earlier I suggested studying the websites of ASIC and the ATO. The latter has detailed information about the government co-contribution. Anyone who didn't have their ears and eyes closed would be aware of this. It has been referred to on many, many occasions over the last several years.
For heaven's sake, if teachers were to teach everything the lazy public declined to find out for themselves, they'd be working 24 hours a day. I don't think anyone would disagree that basic financial literacy should be fundamental in anyone's education, but given the Australian literacy and numeracy rate in the most basic terms is abysmal, we probably need to focus on that before providing information about superannuation to school children. Recently it was reported that fifty percent of the Tasmanian population is illiterate!!
Let's expect a bit of personal responsibility in terms of acquiring necessary financial education. There is no shortage of information readily available via a simple Google search. Surely we don't have to spoon feed everyone.
Perhaps the education system also needs to focus on the removal of superfluous apostrophes.
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