Initial Consultation in Financial Planning
We normally do not charge a fee for our initial consultation. This consultation gives us the opportunity to get to know you, understand your objectives and advise as to how we can help you. This can be conducted either in person or if more convenient via our Skype video service.
At the initial consultation we will provide you with a fee quote for the service that would best meet your needs and expectations. If you decide to appoint Australian Financial Practitioners, the quote will become the fixed price for our service and therefore, you know exactly what the total costs are prior to engaging us.
Our fees associated with each service are based upon the time involved, the necessary expertise required and the complexity of the assignment.
There are four services which we provide to our clients:
- Scenario Analysis,
- Financial Advice,
- Portfolio Management, and
- Wealth Coaching
Scenario Analysis in Financial Planning
Each of us have goals we want to achieve in life and questions we seek answers to:
- What can be accomplished?
- What must be sacrificed?
- What is a priority?
- How much risk must be taken?
We provide a number of scenarios for you to review so that you can compare and select the general path that you are most comfortable with. We have access to many strategies and specialisations to help you remove obstacles to achieving your financial goals.
As Australian Financial Practitioners are not affiliated with any bank, insurer, fund manager or broker, we can provide scenario analysis on:
Accelerated wealth accumulation, asset ownership protection, banking relationship management, business finance options, capital loss risk mitigation, debt consolidation/ structuring, debt recycling, direct investment portfolio management, derivative selection, discretionary trusts, DIY super, estate beneficiaries, equity recycling, gearing, income risk mitigation, insurance portfolio, inter-generational planning, investment ownership structure, mortgage loan management, philanthropic services, personal injury financial management, portfolio asset diversification, portfolio risk management, real estate acquisition, retirement longevity risk, religion compliant investments, small business capital gain tax, superannuation ownership structure, superannuation borrowing, tax-effective income streams, tax-effective investing, wealth protection, etc
Fees for Scenario Analysis range from $990 to $3,990 and include a written report (known as a limited Statement of Advice). For those clients seeking advice on a detailed financial roadmap, coupled with product recommendations and implementation, they may wish to consider our Financial Advice services.
We provide ’conflict free’ advice in the following five key areas:
| Wealth creation
||cash & debt management, salary packaging, superannuation & investment strategies
| Wealth preservation
||buy sell agreement, risk & asset protection
| Wealth distribution
||retirement planning/ pensions, Centrelink, redundancy/ retrenchment & tax effective strategies
| Wealth succession
||Inter-generational, estate planning and business succession planning
| Wealth cashflow
||cashflow budgeting & savings plan
At Australian Financial Practitioners our Financial Advice is tailored into two distinct groups:
Personal or lifestyle financial planning
Catering towards the personal needs of the client.
Business or strategic financial planning
Emphasis on the needs of small business owners and self-employed professionals.
Whilst our practice has one master only and that is the client, we usually refrain from providing Financial Advice pertaining to margin lending, discretionary share trading, private syndications and tax minimisation schemes. We consider these strategies carry high risks which are very difficult to quantify or mitigate via sound financial management.
Fees for Financial Advice range from $1,500 to $6,000 (+ gst) and include a Scenario Analysis. The advice is provided in a comprehensive written report (known as a Statement of Advice) encompassing; risk-reward analysis, strategies and options, cost-benefit analysis, product/ service investigation and a detailed financial roadmap to achieving your financial goals. In addition, the fee covers the full implementation of the advice.
Any commissions received by Australian Financial Practitioners (less Licensee charges and taxes, if applicable) will be fully refunded to the client or used to offset their Financial Advice fee.
As Australian Financial Practitioners are not affiliated with any bank, insurer, fund manager or broker, we can provide product/ service analysis on:
account based pensions (ABP), age care bonds, annuities, APRA small funds, bank accounts, capital guaranteed funds, Centrelink age pension/ benefits,, charitable endowment funds, corporate bonds, debt restructuring, education bonds, exchange traded funds (ETF), equities (ASX), fixed interest issues, funeral bonds, government bonds, hybrid securities, industry superannuation funds, installment warrants, investment managed funds, listed investment companies (LIC), listed property trusts (LPT), options, private ancillary fund, real estate investment trusts (REIT), self funding instalments (SFI), self-managed superannuation fund (SMSF), separate/ individual managed accounts (SMA/ IMA), structured share portfolios, term allocated pensions (TAP), term deposits (TD), risk protection cover, warrants, wholesale superannuation funds, wrap accounts, etc.
Successful Portfolio Management has three key ingredients:
- A financial practitioner that has intimate knowledge of your situation.
- A relationship that is free of all conflicts of interest.
- A financial practitioner that maintains a high level of knowledge and expertise.
We offer two Portfolio Management options.
Private Client Service
This is our full on-going service offering and is of most value to clients that are looking for a long term relationship and value having the pro-active support and care from an expert they can trust.
At the commencement of the Private Client Service the client receives a Welcome Kit which may include:
- wealth book;
- Skype software instructions; and
- if required, digital webcam.
The service encompasses:
- High level of on-going advice through:
- Quarterly Progress Update (no cost option)(Skype video or telephone conference)
- Semi-annual Financial Roadmap Review (no cost option)(Skype video conferencing or in person meeting)
- Annual Portfolio Review (In person meeting)
- Annual Risk Protection Review (no cost option)(Skype video or telephone conference)
- Budget and tax planning review (no cost option)
- Working with your banker, accountant, lawyer or broker
- Unlimited access to your financial practitioner
- (Telephone, email or Skype video conferencing)
- Due diligence on financial strategies and investment opportunities
- On-going cash-flow management (no cost option)
Fees for the Private Client Service range between $170 and $550 per month (+ gst) per investor and are subject to annual renewal at the client’s sole discretion. Any on going commissions received by Australian Financial Practitioners (less Licensee charges and taxes, if applicable) will be fully refunded to the client or used to offset the Private Client Service fee.
To ensure you are provided with the very best service, we have a self-imposed restriction of a maximum ninety-five clients per financial practitioner. Whilst this restriction is less than half the client numbers usually managed by an individual financial planner, it is in keeping with our Value Statement.
Another salient benefit with Australian Financial Practitioners is that the portfolio attached to the Private Client Service is exempt from any future Scenario Analysis or Financial Advice fees. This means that when there is a significant change to your circumstances which may impact on the current portfolio, we will undertake a new scenario analysis or financial plan at no additional cost to you.
This service is suited to those who have a low level of complexity or Do-It-Yourself investors seeking expert council. They want to maintain responsibility for managing and monitoring their financial affairs and seek our council as they deem necessary.
Fees for the Consultancy Service are charged on a time basis between $290 and $390 per hour, depending on the seniority of the financial practitioner.
A stand-alone service in which we provide five ‘private’ sessions with a wealth coach to help clients to better understand their spending habits and to learn household budgeting techniques to improve their cash resources. Whilst these sessions are usually held over a five month period, we provide clients with a further unlimited six month telephone access to their wealth coach.
The programme concludes with the client designing their own preliminary financial plan.
- Budget planning
- Debt Management
- Risk Management
- Creating Wealth (savings plan)
- Wealth Strategy (investment plan)
- Personal Financial Plan (excl. product analysis)
- Mentoring program
Additional Services (at extra costs):
- Asset Selection (product recommendation)
- Portfolio Establishment (implementation)
- Portfolio Management
At the commencement of the Wealth Coaching service you will receive a Welcome Kit which may include:
- wealth book;
- budgeting workbook;
- budgeting software;
- Skype software instructions; and
- If required, a digital webcam.
To make the availability of this service as convenient as possible, we conduct our ‘private’ sessions via the Skype Video conferencing facility. Arrangements can be made for those clients without access to a computer and the internet.
Fees for Wealth Coaching total $1,650 and usually paid by an up-front fee of $650, followed by five equal monthly installments of $200.
We provide advice to business owners and investors who wish to remove obstacles to achieving their financial goals. The obstacles could range from saving the business from creditors to working out the best strategy to enhance its value, and everything in-between.
What makes us different?
Firstly, we do not assist people who wish, for the first time, to start-up or purchase a business. As Financial Practitioners, our focus is on experienced business owners/ investors with a small to medium enterprise (SME); i.e. a business with a turnover of less than $5 million and employs less than 100 people.
Secondly, we provide independent advice in that we are not owned or aligned with banks, business brokers or lawyers. This means that when we make a suggestion it isn’t on the basis of earning fees.
What Australian Financial Practitioners do, however, is help you make decisions in removing obstacles to achieving your goals, meeting with you regularly to ensure you are on the right path to achieve your goals and help address any new obstacles in your pathway. Australian Financial Practitioners are essentially looking after you from a ‘future’ perspective.
Another important distinction in using Australian Financial Practitioners is that the practice can help people with both business issues and their personal financial wellbeing, if desired. This point is very important as personal and business wealth is often blended together requiring careful management so that one does not adversely affect the other over the long term.
Our business process
To get started we take a rather unique process, we embark on a SWOT analysis of your business as follows:
||Characteristics of the business that may give it an advantage over others; e.g. a unique product or service.
||Characteristics that may place the business at a disadvantage over others; e.g. the cost of delivering the product or service.
||Identifiable chances the business could take to improve performance (costs or profits); e.g. introducing new unique products or service.
||Elements outside the control of the business which could cause trouble; e.g. the unique product or service becomes restricted by regulators.
The SWOT analysis usually highlights the salient areas needing attention in order to address the obstacle or obstacles to achieving your goals. Whilst the SWOT analysis may be broad in outlook, the outcome usually allows the design of a specific roadmap which encompasses one or more of our specialisations to meet your needs.
In short, Australian Financial Practitioners first focus on what contributed to the problem or in other words, how did the obstacle get there? Then we help devise a solution to remove or at least address the obstacle so that you can achieve your goals. We are taking a ‘future’ perspective in that just providing a solution is a short term answer, addressing the problem is likely to foster a long term answer for you.
The salient areas of specialisation are as follows:
|• Minimising financial costs
• Expanding credit capacities 1
• Managing difficult creditors
• Managing the banking relationship 1
||• Lowering costs for beneficiaries
• Asset protection for beneficiaries
• Wealth distribution strategies 2
• Business continuation strategies
||• Asset/ wealth protection 2
• Financial risk protection 2
• Maximising retirement income 2
• Maximising CGT concessions 2
||• Maximising business value
• Exit strategies
• Buy/ sell arrangements 2
• Managing family/ employee expectations
|• Expansion of current operations
• Improving delivery & service offer
• Enhancing EBIT
• Target marketing programme
1. Services may be provided with an Australian Credit Licensee. 2. Services may be provided with an Australian Financial Services Licensee.
The specialisations are reflective of our 20 years’ experience working with business owners and investors in enterprises ranging from exporting/ importing, accommodation, engineering, manufacturing, distribution networks, services, food, transport & storage, retail trade, hospitality, wholesale trade to offshore operations. You would be surprised at the number of times a solution for one industry can be transferred to another with equal success.
In actual fact we have experience working with business owners and investors in many countries which may give us the added ability to bring home ‘solutions’ not readily found in Australia.
Fees and Costs
The Engagement Fee usually covers an S.W.O.T. analysis and may encompass some areas of specialisation as requested by the client. A key aspect of this service is flexibility in order to meet the needs of the client.
An engagement fee of $1,000. Thereafter, $1,500 per day session, $900 per half day session or from $7,500 annial retainer.
Project Management Fee (optional):
The Project Management Fee may be applicable should the client require specific ‘hands on’ assistance in managing a major project. The negotiated fixed price fee is based upon the type and complexity of the project and is in addition to the Engagement Fee.
Statement of Advice Fee (optional):
The Statement of Advice Fee is payable* should the client request specific financial planning advice pertaining to their personal needs. The fee is in addition to the Engagement Fee. The fixed price fee ranges from $1,500 to $6,000 (+GST) and is based upon the time involved, the necessary expertise required and the complexity of the assignment.
* Payable to the Australian Financial Services Licensee.
Business Advice is a separate service to that of personal financial planning. Please note that unless stated in writing, Business Advice is provided solely by Australian Financial Practitioners Pty Ltd and not as a Corporate Authorised Representative of Lifespan Financial Planning Pty Ltd.