Superannuated Commonwealth Officers Association

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• Superannuated Commonwealth Officers Association
• 31 October 2006

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Overview

• NICRI
• Preparation and dealing with Financial Planners
• What is Safety
• Proposed changes to Superannuation
• Summary

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Who is NICRI?National Information Centre
onRetirement Investments IncEstablished 1990

• Independent service
• Government funded
• Consumer based organisation

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What does NICRI do?
Provides information to help people understand

• How particular investment products strategies
  work
• The risks involved with particular investments
• The Centrelink / DVA and taxation implications of
  the products

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NICRI does NOT

• give or imply financial advice
• do individual case work
• recommend specific advisers
• recommend investments or strategies

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NICRI
Based in Canberra
Phone [phone] (02) 6281 5744
or Fax [phone] Address PO Box 893
WODEN ACT 2606 E-Mail Address
NICRI_at_nicri.org.au Websites www.nicri.org.au
moneymap.nicri.org.au
Office Hours 9am-5pm Mon-Fri
Free Service
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Financial Planning
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Financial Planners

• Should aim to help you achieve your goals
• Recommend Investment Strategy
• Recommend Investment Products
• Establish Credentials
• Ask Questions
• If not satisfied with answers say NO

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Financial Planners

• Licensing
• Training
• Experience
• Financial Services Guide FSG
• Professional Indemnity Insurance
• Issues of independence
• Research

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Advice Providers

• Australian Financial Services (AFS) Licence
• deals in securities
• provides investment products
• gives investment advice
• Usually receives brokerage, commission or charges
  a fee
• Authorised representative
• to give advice sell products on behalf of
  Licensees
• may receive brokerage, commissions, charge a fee
  or receive a salary

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The Cost of Financial Planning

• commission based
  
• usually provides service free of charge
  
  
• earns income when investments are placed
• portfolio based
  
• charges a scale of fees based on total amount
  being invested
• fee for service
  
• fee depends on time taken
  
• complexity of plan
  
• charge applies if advice taken or not
• combination

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Financial Planning Process

• Data gathering
• Goal setting
• Risk identification
• Written recommendations

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Exercise

• Cloak
• Bloke
• Stroke
• Croak
• Oak
• Folk

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• Implementation of agreed recommendations
• Review and revision
• moneymap.nicri.org.au

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What is safety?

• Preservation of capital
• Dollar value
• Dollar amount
• Diversified portfolios
• Adequate income