Financial planning Q&A - no better time to plan than now!
Luke Mase, Financial Adviser at Inovayt, is passionate about helping young people get ahead with their finances. Having been in the industry for close to 7 years, he is keen to empower people to take control of their finances and give them the confidence to do the things they enjoy the most.
We chatted to Luke recently to understand a little more about what he does and how he can assist people with planning and managing their finances better.
What does a financial planner do?
A financial planner’s main purpose is to understand what a person’s financial objectives are and to devise a plan to enhance the chances of this happening through personalised financial advice.
How do you help people?
We help a broad range of people from all age groups. Some of the specific areas that we assist people with are:
Goal setting and goal prioritisation (This should always be the starting point)
Retirement planning
Superannuation and investment advice (Wealth creation)
Risk management (Eg: Insurance advice and estate planning guidance)
Cash flow management
Tax minimisation strategies
What are you talking to your clients about right now?
The pandemic has lead to a few key areas of focus for people. I would say the key focus for a lot of people is around Superannuation and investing.
1. Super: We have had a lot of enquiries regarding the ramifications of withdrawing Super under hardship provisions. We have also had a lot of questions/concern about the actual investments within people’s funds given markets have been hit hard.
2. Investment: Plenty of people have decided to have a crack at the share market if they have some spare cash lying around. The key concern I have is people jumping in blind and trying to ride the wave of upward momentum since the market dipped. A key benefit of speaking to a Financial planner in times like these is that they can outline the risks involved and provide some clarity and guidance.
What looks to be the biggest concern for people in the next 6 months in terms of their financial planning and finances in general?
The biggest concern that people have right now is uncertainty. There are so many unknowns, particularly for people living in Victoria and financial stress will undoubtedly continue to rise as a result of business restrictions. People need to understand what options they have available to them to ease the pressure and allow them to move forward.
Top tips for achieving a financial goal?
Goal setting should always be the first thing that you consider before making a financial decision. My top tips for achieving goals are:
Make sure that you set SMART goals (Specific, Measurable, Attainable, Relevant & Time based)
Don’t try to keep up with the Joneses. Make sure that the goals you set are relevant and important to you
WRITE THEM DOWN! Keep them front of mind and track your progress (I recommend an App called Strides)
Quickfire round
Invest in property or stocks?
Depends on your circumstances! One thing I will say is to always consider diversification (Don’t put all your eggs in one basket)
Life insurance or income protection?
Depends on your circumstances! Consider your needs, your financial situation and what outcome you are trying to achieve by taking out cover
Home loans. How often should we renegotiate?
Review every 1-2 years, potential for rate reductions and other offers from rival banks
Industry super fund or self managed?
You won’t believe it, depends on your circumstances! Consider the pro’s and cons of each and which is more appropriate for your needs (Costs, compliance requirements, investment restrictions etc.)
WFH or back to work in the office?
Both (2 days at home and 3 in office is what I like)
We want to thank Luke for his time, and if you have any questions regarding your finances or financial planner, reach out to Luke for a quick chat!
Tabitha Robb