[AMA] Hi Ozb - I'm a Private Wealth Advisor

LSplice89 on 06/02/2025 - 15:16

Hey OzB,

I'm an experienced Private Wealth Financial Advisor, and I’ve spent over a decade helping professionals, business owners, and high-net-worth individuals navigate the complexities of personal finance and wealth management. Whether it’s retirement planning, investment strategies, tax efficiency, intergenerational and legacy planning I’ve seen and handled it all.
Given the ever-evolving financial landscape and the unique challenges it presents, I thought it would be great to host an AMA. I'm here to answer your questions about:

  • Investment strategies – How to build and grow wealth effectively
  • Retirement planning – Making sure you're on track for financial independence
  • Market trends & economic shifts – What they mean for your portfolio
  • Risk management & insurance – Protecting your wealth and family
  • Estate & legacy planning – Ensuring a smooth wealth transfer
  • Financial planning for business owners & executives – Maximizing opportunities
  • Debt management & tax-efficient strategies – Keeping more of what you earn

A bit about me: I spent the first deceade of my career as a Private Wealth Advisor in Australia’s largest Private Banks and now run recently running my own business, focusing on helping clients make confident, informed financial decisions without the fees associated with the Private Bank offering.

Disclaimer: While I’m here to provide general financial insights and information, this does not constitute personal financial advice. Every situation is unique, and I recommend consulting a financial professional for specific guidance.

So, OzB, what do you want to know about financial planning and wealth management? Ask me anything!

Introduce Yourself

closed Comments

        • Splice89 on 25/02/2025 - 15:29

          Copying from a previous answer which hopefully assists -
          Splice89 on 19/02/2025 - 15:18
          ETFs play an important role in a portfolio, and I might be biased, but I believe it shouldn't be all or nothing, especially within super where investment timelines can be longer as well as risk being important. Barefoot Investor raises valid points about fees and transparency, but some top-performing super funds, like AustralianSuper and UniSuper, have outperformed ETFs due to their access to unlisted assets (e.g., infrastructure, private equity) and active risk management. While ETFs offer low costs, transparency, and broad market exposure, they lack the ability to manage downside risk or increasing their level of diversification beyond listed markets. If you consider Private Equity as an example, it has, on average, outperformed the global equity index by a large margin

          See more on returns here - https://www.kkr.com/insights/private-equity-vs-public-market….

          Also consider how the smart money is invested such as Sovereign Wealth Funds and Endowment Funds. They tend to hold over 50% of their allocation in Private Markets for that very reason.

          See more on asset allocation here - https://www.institutionalinvestor.com/article/2dwp8zh3cxer9x…

          https://www.futurefund.gov.au/-/media/A2CEDAE6995E420590A544…

          All I'm saying is a pure ETF strategy is cheap and therefore it serves a purpose in portfolio construction, however, should you allocate 100% and miss out returns from other asset classes / active managers that can aid performance and reduce downturns?

  • Bystander on 07/02/2025 - 17:44

    What would you suggest for someone who is about to turn 60 in the next year and is not working and doesn't anticipate working ever again?
    They have an accumulation Super account and have sufficient funds outside of super to cover living costs until their 70's.
    My understanding is that moving funds to an account based pension means that there will be no more tax on these assets. However an account based pension is used by Centrelink when assessing your total assets whereas an accumulation account is not.
    Is this correct?
    Would you recommend changing the existing structure?

    • Plasticman on 08/02/2025 - 11:29

      I think would depend on what your taxable rate is, what assets you have outside of super, and presumably how much you have in super. If you move your super into an account based pension , the earnings in the account based pension are tax free , as opposed to the earnings in a super account which are taxed at 15%. However you must withdraw a minimum amount (5%?) annually from your account based pension annually.

      • Splice89 on 25/02/2025 - 15:32

        I would agree with @Plasticman response. It does depend on the client situation but it is a fine balance. Admittedly, I'm not as familiar with Centrelink rules as I was in the past given majority of my clients are not eligible for any payments. In the past though when I did deal with it, this exact case is always a fine balance to ensure you are still reaping the benefits of the tax free pension (which is the only tax-free investment vehicle available for personal purposes and shouldn't be ignored) versus impact on Centrelink benefits.

  • Bystander on 07/02/2025 - 17:44
    +1

    If someone were to provide their Super fund with a “notice of intent to claim a tax deduction” and then deposit after tax money into Super as a Personal Deductible Super Contribution (or is it known as a Personal Concessional Contribution?) it will be taxed at 15%. How does this work out at tax time at the end of the financial year? They are depositing less than their remaining concessional contributions. Do they get a rebate for the double tax paid? Does this deposit reduce assessable income for income tax purposes?

    • Plasticman on 08/02/2025 - 11:21

      (BTW I am not a financial advisor)
      What will happen is that the superfund will take 15% out of the amount you have contributed to them and send it to the ATO.
      You just claim the original amount you contributed to the superfund in your tax return.

    • Splice89 on 25/02/2025 - 15:34

      Yes this is all worked out at Tax time. You will see a balance in your superannuation account that shows the break up between Concessional Contributions and Non-Concessional Contributions. If you wish to increase your allocation towards Concessional to maximise tax deductibility then you re-submit the notice to update the tax deductibility.

  • afah0447 on 07/02/2025 - 18:48
    +1

    Should i focus on paying off my investment property or throw extra cash into the stockmarket?

    • Scrooge McDuck on 09/02/2025 - 16:24

      Whichever is higher of your loan interest rate or estimated stock market return.

    • Splice89 on 25/02/2025 - 15:37

      For Deductible debt, it is a little bit less certain when compared to paying off home loan debt (i.e non-deductible debt). It does come down to expectation of returns vs guaranteed return of paying down the debt (and essentially reducing the mortgage cost). In most cases, in this environment with higher interest rates and elevated sharemarket levels, a more conservative strategy would be paying off debt. Of course though it depends on your situation, timeline and appetite to risk.

  • lukeWAozb on 07/02/2025 - 19:19
    +1

    My partner and I want to speak with a professional about our debt and tax strategies - we are by no means high net worth but doing well and want to make sure we're taking full advantage of our current position (minimal outgoings). How do we find an appropriate financial advisor? The ones we have reached out to seem not to be interested unless we've got 6 figures ready to invest with them. We're more looking for the advice to help us get there from our current position.

    • onceupon8 on 07/02/2025 - 19:36
      +2

      Unfortunately the legislation is really bad, and financial advisors can't just give limited financial advice. They have to prepare extensive documentation (Statement of Advice). As such if you aren't wealthy, generally you are best to learn yourself and not see a financial advisor. Financial advisors really need to charge at least $5k per year, so you would really want to have over $1-$3 million (depending on advisor) in assets to invest. Listen to podcasts like the Money Cafe / Money Puzzle, read magazines like Money etc.

    • Splice89 on 25/02/2025 - 15:41

      @onceupon8 has largely covered off on what I was going to say and unfortunately it is difficult which is the major issue with this industry. As for specific debt and tax strategies though, I would say, most accountants should be able to provide you with a higher level understanding on what to maximise / minimise. Feel free to PM me if you have specific questions and I can provide some general guidance.

  • Splice89 on 07/02/2025 - 20:27
    +1

    Sorry guys I’ll come back to all messages just dealing with a client situation at the moment which has been unprecedented. Thanks for the replies!!

  • Bunnyburger on 07/02/2025 - 21:24
    +1

    Is private banking a scam?

    • Free Fall on 10/02/2025 - 01:30

      Not quite, you pay for the 'white glove' service. Someone you can call up to check your bank balance, help with bank accounts, transact fx and your favourite cuppa when visiting the bank (source: ex private banker).

      • Bunnyburger on 14/02/2025 - 00:49
        +1

        But the fees doing anything related to banking and investing are so much more than what the lower tier clients are charged. It feels like a service for old rich people who don't know how to use the internet.

        I don't mean to pick an argument. But the value is not perceivable because those just below private banking tier get the same thing. If you said they let you have dibs on superbowl or basketball court ringside tickets I'd understand.

    • Splice89 on 12/02/2025 - 14:59

      No - I believe it serves a purpose for time-poor individuals and their lending practices are less black and white than what you would receive from a Branch. I just believe Mortgage Brokers are better value if lending is what you require given their access to numerous banks instead of just one. As for the Investment Offering, it is strong across the board, however is better with the Swiss Private Banks as opposed to the Domestic ones.

  • mactos on 07/02/2025 - 21:51

    What is your preferred investment structure and does it depend on the asset?
    Discretionary/family trust, investment company, individual?

    • Splice89 on 12/02/2025 - 14:55

      It really depends on the type of investment. Capital growth investments typically benefit most from the CGT discount (whether held in a trust or personally), while income-generating investments may be better held in a company to take advantage of the lower tax on income. Depending on the client's situation, a trust, company and superannuation account could each be used for different purposes, all working together as part of a holistic strategy.

  • Yiannakis50 on 07/02/2025 - 22:19

    Is your superannuation invested in a retail or industry fund?

    What sort of benefit period do you recommend to clients for income protection given the changes post Oct-2018?

    • Splice89 on 12/02/2025 - 14:55

      I have a SMSF.

  • mjwills on 07/02/2025 - 22:53
    +2

    What super fund do you suggest to avoid CGT drag?

    • SBOB on 08/02/2025 - 08:02

      Australian Super members direct or Hostplus choice plus if you want the simple option.
      If just aiming to simply hold ASX stocks and etfs it's hard to justify a SMSF with the cost of these.

      • Plasticman on 08/02/2025 - 11:42

        I agree. My partner and I have our super in an industry fund Aware super which has been quite good.
        I used to have some super in retail funds, and eventually consolidated them in the industry fund.
        Hesta is also a good industry super fund.
        Industry funds have come a long way. They offer a lot of flexibility with respect to how you wish to invest your contributions. And if you simply wish to ASX stocks (I know nothing about EFTs!) in super then it is much easier , less time consuming and cost effective the use an industry super than a SMSF.

        • mjwills on 26/02/2025 - 15:52

          Plasticman If you use the pre-existing investment options that Industry super uses then you will experience CGT drag (except for Choiceplus and Member Direct).

    • Splice89 on 25/02/2025 - 15:44

      SMSF is always the cleanest option for CGT as you own the underlying funds and therefore the CGT is specific to your fund and not a pooled asset arrangement like industry funds where tax isn't individualised to your account. I understand SMSF is not possible for everyone given upfront costs of approx $2 - 3k and ongoing accounting of $1 - 3k, so next best option is retail super funds before industry in my opinion. I have heard Industry Funds have improved in this space but not from anything I have seen thus far.

  • HamBoi69 on 08/02/2025 - 00:00

    How do I pay as little tax as possible? Legally of course, just interested in ways and methods.

    • Splice89 on 12/02/2025 - 15:06

      I'm no longer a practising accountant so can't give advice here. Owning a business helps alot as there are not alot of deductions available for PAYG Employees.

  • mrvaluepack on 08/02/2025 - 07:46

    A few questions if you don't mind:
    1. What is your advice for the minimum net assets before considering setting up a family trust?
    2. If a family trust were to be set up with your advice and company, does your fees (fees you charged already answered above) also cover the accounting side of this?
    3.Whats your opinion on UK based accumulating ETF index funds? Can they be used to reduce taxable income and only be capital gain taxed?
    4. Any other tips on asset allocation to minimize taxable income but increase capital gains?

  • Foggy Fluoride Stare on 08/02/2025 - 08:11

    Can I inquire as to the rationale behind the choice of your title of a private wealth advisor, considering your minimum requirements for your client base predominantly comprises individuals typically served by standard financial advisors?

    Honestly, I am finicky when it comes to choosing my private wealth advisor. I prefer to personally make this choice, rather than relying on the bank's recommendation and I shall reallocate my funds elsewhere should the bank not comply with my requests. It is a requirement that my advisor have a net worth of at least $10 million, as I believe it is crucial for them to have meaningful experience themselves in managing wealth. The bank after a comprehensive search, identified the most suitable advisor for my needs.

    From my viewpoint, my private wealth advisor collaborates with the broader family office team. A genuine private wealth advisor must satisfy the criteria I have outlined, otherwise they are are not genuinely a proper private wealth advisor.

    While others may perceive your advice as professional, I personally have not gleamed anything particularly important that would suggest that. From my perspective, the information shared has largely been publicly available and you haven't offered anything beyond what was already known.

    If you are now put on the spot to market yourself and your firm. What sets you and your firm apart from others? This will help assist you in your professional life. This is not intended as a criticism. Personally, the vibes aren't there.

    My private wealth advisor was a former FX trader. Colloquially, what do you bring to the table? Could you elaborate on any distinct advantages and benefits you offer to your clients?

    • Yiannakis50 on 12/02/2025 - 21:58

      Speaking about 'vibe' here is mine, it’s clear that you have a very specific definition of what a private wealth advisor should be, though industry terminology and professional standards may not align with your personal criteria.

      The designation of "Private Wealth Advisor" is not solely based on an advisor’s personal net worth but rather on their expertise in managing complex financial needs, high-net-worth individuals, and sophisticated wealth strategies. Many top-tier advisors do not meet your arbitrary net worth requirement, yet they have successfully managed and grown substantial client portfolios.

      Additionally, private wealth advisory extends beyond just individual expertise it includes institutional resources, investment research, and strategic planning capabilities. Let me 'educate' you for a better term, if you are looking for someone whose primary qualification is their past career or personal wealth rather than their ability to navigate intricate financial landscapes effectively, that is, of course, your prerogative. However, the value of a wealth advisor is measured by the results they deliver to their clients, not their personal financial standing.

      Wishing you success in finding an advisor who aligns with your expectations, hopefully many are happy to hand over the FSG and their personal tax return for you to make your logical assessment in your world.

      • Foggy Fluoride Stare on 18/02/2025 - 15:30

        Yes, I think you will find that the OP has left the stage after the hard questions started being asked.

        Thank you, but I already have a team. I was simply curious about what this individual brings to the table, as it seems they may not offer much value to the broader OzBargain community given they are just giving very general information which is already publicly available. These are the usual sound bites from your typical financial advisor.

        Typical financial advisors can make a reasonable sum of money.

        For me, I do not even go onto these forums for the bargains. I am looking at the bigger picture.

        The post was essentially prompting this individual to reflect on their career goals and aspirations.

    • ihbh on 18/02/2025 - 17:30

      It is a requirement that my advisor have a net worth of at least $10 million

      This is a hard one. Most finance savvy people retire early with assets below that - e.g. couple of $m and just invest for a million.

      Why would they need a job?

  • bin555 on 08/02/2025 - 09:00

    What managed funds would you advice to look at that are close to replicating Superannuation fund returns.

    • Plasticman on 10/02/2025 - 09:14

      It's a bit like comparing apples and pears. Managed funds and Superannuation funds are taxed differently so comparing their returns is not all that needs to be taken into account. Super funds earnings are taxed at 15% within the fund whereas Managed funds distribute their earnings to their investors which is then taxed at the investors' personal tax rates.

  • suchan on 08/02/2025 - 11:03

    What's your thought on Crypto and do you personally invest in it?

    • Splice89 on 12/02/2025 - 15:07

      I've answered this in initial questions so hopefully you can find the answer there. In short, I see value in having a small allocation but given it is not able to be 'valued' it is seen to be a very risky asset (at this at present).

  • 2025 on 08/02/2025 - 13:12
    +4

    I’m often dubious of wealth advisors that are still practising, obviously their methods haven’t worked for themselves. Similar to life coaches who are still on the road, if the advice these people give was any good, wouldn’t they be on a yacht washing down their helicopter?

    It’s similar to hiring an overweight fitness instructor.

  • Hangryuman on 08/02/2025 - 14:11
    +1

    'it would be great to host an AMA'

    are you a member of the Australian Medical Association … ? 🤔

  • yuley75 on 08/02/2025 - 16:36

    Looking to invest for my kids. They are under 18 years of age. Looking to invest in EFT or shares. Is it better to wait until they are 18 to have them invest in themselves under their own names? or is it better to start now and then when they are 18 transfer the shares to their name. As I have heard children that make of $416 are taxed at 66% for example.

    • Plasticman on 10/02/2025 - 09:26

      It may be a little fiddly to do the the latter. Off market transfers means you will need work out the cost base of the shares at the time of transfer and then work out the capital gain/loss. And you are correct. The tax on investment earnings on children under 18 years is punitive, so as to deter using this practice as a tax reduction strategy. Especially with respect to family trusts.

    • Splice89 on 12/02/2025 - 14:09

      Yes, this is a tricky one, and the minor tax can make the strategy almost unfeasible. One option is to hold the portfolio in trust for the child and include the tax in your own personal return. A better alternative to consider is Investment Bonds, which benefit from the lower company tax rate (less franking). Several years ago, these weren’t as attractive due to high costs and limited investment options. While they still have some restrictions, they have improved significantly and are now a much more viable option. It is worth speaking with a Financial Advisor about setting one up as it will depend on your family tax situation / kids ages etc

  • SpainKing on 08/02/2025 - 17:08

    If you've read any of them, what are your thoughts on the books:
    "I Will Teach You To Be Rich" by Ramit Sethi
    "The Simple Path to Wealth" by J. L. Collins
    "Rich Dad Poor Dad" by Robert T. Kiyosaki and Sharon Lechter
    "The Barefoot Investor" by that guy (Scott I think is his name)

    If you've read them all, a comparative ranking would be excellent. If not, recommendations of books you found valuable for yourself or your clients would be lovely too

    • afah0447 on 26/02/2025 - 09:25

      Barefoot Investor - the best for people starting out in Australia.
      RDPD - Not very realistic for Australians and too much focus on debt.

      However, the best:

      The Total Money Makeover - Dave Ramsey. The Barefoot Investor is 90% lifted from it but with an Aussie twist.

  • frostman on 08/02/2025 - 20:58

    whats some investment options for 25K in SMSF?

    • Splice89 on 12/02/2025 - 14:10

      I'm sorry I can't give specific advice however I would say keep diversification in mind and not just choose one investment / asset class.

  • Tiredman on 09/02/2025 - 00:40
    +1

    I just buy bitcoin.

    • welcomeUniverseWorld on 09/02/2025 - 10:38
      -1

      100%.

      The scariest decision I ever made was putting my entire super into Bitcoin through SMSF.

      The most hopeful decision for my future is the one I already made.

  • namanuu on 09/02/2025 - 01:25
    +1

    What undies do you wear? And do you have any undies suggestions? Asking for another thread

    • Splice89 on 12/02/2025 - 14:11
      +1

      Bonds

  • Eeples on 09/02/2025 - 07:25

    What is your approach and attitude and advice regarding market uncertainty in light of current US politics and economic ‘decisions’ ?

  • Thanos from Titan on 09/02/2025 - 10:37

    Any recommendations or ideas for investing for kids?

    • Splice89 on 12/02/2025 - 14:11

      See above comments

  • potnurun on 09/02/2025 - 13:07

    ->For someone looking to build long-term passive income through investments, what’s the best balance between dividend ETFs, property, and fixed income in the current market?

    ->What’s the most tax-efficient way to structure investments for high-income earners looking to minimize tax while growing wealth?

  • JDearyMe on 09/02/2025 - 15:22

    If you won 50m in the lotto, what would be the first steps you took?

    • Splice89 on 12/02/2025 - 14:16

      I would only tell my immediate family, I would also continue to work as I love what I do. I'd setup my own Family Office and run this alongside my Private Wealth Firm. We do look after some Tattslotto winners and the stats are true on the failure of them not receiving advice.

  • Purp on 09/02/2025 - 16:16
    +1

    What to do with 100k in savings account?

    • Splice89 on 12/02/2025 - 14:16

      depends on timelines, age, debt, risk profile and a number of other factors. I'm sorry I can't provide specific advice here outside keeping diversification in mind.

      • Purp on 12/02/2025 - 16:28

        No debt whatsoever, 30's.

        • Splice89 on 12/02/2025 - 19:10

          well then it comes down to timeline… do you wish to purchase a home (i know, seems impossible these days) but that may impact the risk you wish to take.

  • DealDigger2000 on 09/02/2025 - 16:36

    Okay, I've spoken to a few financial planner in the last 10years. Haven't walked away with any great strategies however got good information.
    Let see give this a shot.
    I'm 45yrs old. Married with 2kids in late primary school and early highschool.
    Salary: mine: 253k + super. Wifey: Self employed. ~60k after tax
    Super: 580k combined
    Assets: 380k in shares, house worth min 2.8mil, 200k savings in offset account.
    Debt: 500k mortgage

    Question:
    I want to grow my wealth with investments properties while keeping my share portfolio.

    I don't have any investment property and was thinking of buy a few using my SMSF.
    Is this wise as my super fund could easily out perform the property market in 20yrs from now without the headache of managing a SMSF?

    If so. Should I look at high growth properties or high yeild for maximum benefit?
    Any suggestions on locations to buy and freestanding over strata/units.

    What is the max loan I would be able to take from the SMSF? This will determine the number of properties I could buy.

    Or besides property via SMSF or crypto investments. What do you suggest I do to build Wealth?
    What is a good passive income target for retirement?

    • Plasticman on 10/02/2025 - 09:38

      Once your superfund gets over 3 million dollars in value the tax on the earnings increases from 15% to 30 percent. However I think it is on a pro rata basis.
      Eg If you had a fund with 6 million dollars in assets, then the 50% of the earnings would be taxed at 15% and 50% of the earnings would be taxed at 30%.
      Also since there is a limit of how much concessional and non-concessional money one can put into super each year, even with the carry over provisions, that might limit how much property one could put into a SMSF.

    • Yiannakis50 on 12/02/2025 - 22:11

      Since you're unlikely to pay for advice, here is some further information for you. Truth is you’re in a strong financial position with high income, solid assets, and manageable debt, so the key to growing your wealth is balancing growth, cash flow, and tax efficiency. Given that your combined super fund of $580K is already well-established, investing in property through an SMSF may not be the most effective approach. Superannuation funds, especially those with a high-growth allocation, historically outperform direct property investments over the long term, and SMSF property comes with restrictions, lending challenges, and liquidity risks. Instead, maximising concessional contributions and keeping your super invested in a diversified, high-growth portfolio will likely yield better long-term results.

      For property investment, the better option is to buy outside of super using your $200K offset account and home equity to fund deposits. With your strong salary and relatively low mortgage debt, you’re well-positioned to acquire high-growth freestanding properties in capital cities (Sydney, Melbourne, Brisbane) or strategic regional areas with strong infrastructure and demand. If you prefer high-yield investments, consider regional areas or dual-income properties, but capital growth should remain the primary focus for long-term wealth accumulation. A mortgage broker can help you determine your borrowing capacity, ensuring you can maximise leverage while maintaining financial flexibility.

      Beyond property, continuing to grow your share portfolio is a smart move, as your existing $380K in shares provides liquidity and compounding returns. Allocating more capital to a mix of blue-chip stocks, ETFs, LICs, and REITs can diversify your investments while generating dividend income for future passive cash flow. Additionally, alternative investments like private equity or infrastructure funds can provide further growth opportunities without the direct management burden of property. Structuring your investments to balance growth and income will ensure steady wealth accumulation.

      To build a $150K+ passive income for retirement, aim for a mix of rental income, share dividends, and super withdrawals while leveraging tax efficiencies like negative gearing and super contributions. Keeping your mortgage offset account full, minimising non-deductible debt, and optimising your loan structures will further enhance your financial position. Your next steps should include consulting a mortgage broker for property strategy, a financial planner for tax-efficient investing, and setting a clear passive income target to track progress. With the right execution, you can accelerate your wealth while maintaining financial flexibility and security for the future.

  • alexdagr8 on 09/02/2025 - 18:07

    Multiple questions:

    If you were looking to build wealth fast (relatively fast) over a 10-15 year period, instead of say 40 years.
    What would you do?
    ETF’s international with high growth and some hedged?

    And separately:
    You have a mortgage - You’re expected to be working another 20+ years.
    Do you 1.
    Pay off your home faster (assuming 1+ mill owing and 28 years left on the mortgage)
    (Your budget can pay an additional $2K per month to pay it down)

    Or 2. invest in diversified high growth ETF’s (compounded) with the $2K per month? - with the plan to pay off the place in its entirety early

    What would you suggest?

    • Plasticman on 10/02/2025 - 10:01

      It would depend on your appetite for risk. Personally I think paying off all non-tax deductible debt (ie mortgages, credit cards etc) is a good strategy. Once the house is paid off one can always take out an investment loan, which would be tax deductible, using the house as collateral.
      Given current interest rates (even with the predicted reduction) any investment would need to earn several percent above the mortgage rate just to break even.
      So, in essence, every additional $2K you put per month into your mortgage is guaranteed to "earn" several percent above your current mortgage rate. Risk free.

      It's not to say that option 2 is an inferior option, but it is higher risk compared to option 1.

  • alexdagr8 on 09/02/2025 - 18:09

    Another question:
    Super funds fees - do you pick a lower fee super fund and cancel the life and salary continuity insurance to maximise returns and encourage your clients to buy life insurance separately if important to them?

    • Plasticman on 10/02/2025 - 10:12
      +1

      That is what I did. I cancelled my default insurance with the industry super fund, and took my own. It depends on your circumstances. Life insurance via a super fund is quite cost effective. But reading the recent articles concerning the issues trying to claim on them…….https://www.theage.com.au/money/super-and-retirement/the-bureaucratic-nightmare-plaguing-our-super-and-how-to-avoid-it-20250207-p5lact.html

    • Splice89 on 12/02/2025 - 14:19

      Thanks for your question. I unfortunately do not provide Insurance Advice so cannot comment specifically. Clients I refer to Insurance Advisors do sometimes maintain some level of cover in Super (i.e Life) but hold other insurances outside due to tax deductibility / higher probability of claiming.

  • alexdagr8 on 09/02/2025 - 18:10

    Super funds investing at age 30-35 (should you switch to high growth)

    • SBOB on 09/02/2025 - 18:16
      +2

      With 25+ years before access you should definitely be in some form of high growth fund type (wether that's direct index funds, equities based options or a 'high growth' pre mix option)

      • tomlikesbeetroot on 10/02/2025 - 16:33

        I went for a split between AUS/US shares options with Australian super, fees are much lower than the high growth option and performance has been better too.

    • Plasticman on 10/02/2025 - 10:15

      Personally yes. With a 30 year horizon the difference in earnings of a high growth portfolio compared to a balanced portfolio could be substantial.

    • Splice89 on 12/02/2025 - 14:21

      I agree with @SBOBs comment. The time to access is so far away and therefore increasing your risk allocation would generally make sense as you are continually dollar cost averaging into the market over this time frame and have many market cycles you can go through before access.

  • Danlew on 09/02/2025 - 22:13

    Would you recommend increasing all life insurance to your actual income / liabilities in case of an unexpected event? Family can still sell some investment etc I thought so my life insurance is set around 50% current income

    • Splice89 on 19/02/2025 - 15:23

      I don’t provide insurance advice, so I can’t comment specifically. Insurance is essentially a safeguard, you pay for it without knowing when you might need it. If you’re considering reducing coverage to 50% of your income, it may be worth discussing with your insurance advisor. While lower coverage means lower premiums, it’s important to ensure the payout would be sufficient if you were unable to work for an extended period. You also need to consider other situations such if you were in a car crash, didn't pass away, but needed medical care for the remainder of your life (TPD claim), this can sometimes be more expensive than you would imagine.

  • Beef Dingle Berry on 10/02/2025 - 10:04
    +1

    Question:
    How many private messages have you received seeking financial advise from this advertisement disguised as an AMA?

    • whyisave on 10/02/2025 - 12:38

      You won't get a reply to that 😁

  • Red01 on 10/02/2025 - 10:06

    What are some good tax effective ways to purchase shares for kids? I’d love to teach them about compound interest/long term investing but so far money is just in HISA because I don’t understand tax on shares for minors. Any advise or resources to read?

    • Splice89 on 12/02/2025 - 14:24

      Read my above comments on Investment Bonds. Also consider Family Trusts if you have a broader portfolio. This is very specific advice based on your Family's Tax situation and children's ages so be careful and speak with a professional.

  • CalmLemons on 10/02/2025 - 12:39

    Do you have a CFA?

    • Splice89 on 12/02/2025 - 14:25
      -1

      No but did consider it. I have a Master of Applied Finance. I chose this as I felt CFA was more relevant for an analyst / fund manager and MAppFin was more holistic across all asset classes and practical for my role. CFA is a phenomenal degree though to complete and some of my colleagues have it.

      • CalmLemons on 12/02/2025 - 19:40
        +1

        I started it and felt like - this is basically to protect peoples money and stop idiots from wasting away the general publics money by applying an intellectual barrier so common people don't get scammed.

  • Paki Packer on 10/02/2025 - 14:35

    Is there a minimum saving amount after which people should contact a wealth advisor. I'm 40 with 3 dependants and 25k in savings no mortgage finding it impossible to invest anywhere secure.

    • SBOB on 10/02/2025 - 14:43
      +1

      impossible to invest anywhere secure.

      What does this phrase mean?

      Every investment is risk vs reward, so you want low risk then HISA, you want stupidly high risk then yolo crypto, you want somewhere in the middle then broad based index fund like vdhg/dhhf/vgs&vas

    • Splice89 on 19/02/2025 - 15:19

      For a Wealth Advisor, $25k is generally a bit low given the fixed fee nature of most businesses. Consider places like Stock Spot but understand the drawbacks I've outlined below.

  • gigi16 on 11/02/2025 - 18:25

    Barefoot investor's has recently taken aim at super companies and their managed portfolios, suggesting that our super should be in ETFs instead. Article: Barefoot Investor calls out Australia's superannuation funds / Daily Mail (See also his recent e-newsletter).

    • Do you agree with what he has to say, can you elaborate? Pros and cons to each?
    • I thought generally some of the better performing super funds (Like Aus Super, maybe UNISUPER) do out perform ETFs.
    • However, he mentions he is a fan of the Aus Super index fund options (I happen to be with aus super and was just looking at a high growth account as I am young), so now I'm looking into things further.

    Cheers ! I think this would be great to have another opinion on as Barefoot is such a prominent voice and this impacts, well basically everyone who has super (mostly everyone!)

    • Splice89 on 19/02/2025 - 15:18

      ETFs play an important role in a portfolio, and I might be biased, but I believe it shouldn't be all or nothing, especially within super where investment timelines can be longer as well as risk being important. Barefoot Investor raises valid points about fees and transparency, but some top-performing super funds, like AustralianSuper and UniSuper, have outperformed ETFs due to their access to unlisted assets (e.g., infrastructure, private equity) and active risk management. While ETFs offer low costs, transparency, and broad market exposure, they lack the ability to manage downside risk or increasing their level of diversification beyond listed markets. If you consider Private Equity as an example, it has, on average, outperformed the global equity index by a large margin

      See more on returns here - https://www.kkr.com/insights/private-equity-vs-public-market….

      Also consider how the smart money is invested such as Sovereign Wealth Funds and Endowment Funds. They tend to hold over 50% of their allocation in Private Markets for that very reason.

      See more on asset allocation here - https://www.institutionalinvestor.com/article/2dwp8zh3cxer9x…

      https://www.futurefund.gov.au/-/media/A2CEDAE6995E420590A544…

      All I'm saying is a pure ETF strategy is cheap and therefore it serves a purpose in portfolio construction, however, should you allocate 100% and miss out returns from other asset classes / active managers that can aid performance and reduce downturns?

      • gigi16 on 19/02/2025 - 15:27
        +1

        Thanks! this is a much more sohpisticated answer than I've been able to get from the internet lol (and I do try and read widely, and various financial advisors do have podcasts (not referring to financial influencers) but I haven't seen any address this issue well.

        I am trying to decide at present whether to invest my super and pension accounts in pre mixed managed funds (aus super), which their free financial advice service can set up for me according to my risk profile, OR whether to explore their member direct option as it has the ETFs and other things (but you need the paid financial advice as the free version doesn't cover member direct). Not sure if the latter is worth it.

        My affairs aren't complicated just need to pick where to put my super :D The only thing is I've already done two rounds of financial advice in my thirties where it was necessasry, and its costly - kinda want to avoid a third.

  • Fat Horny Ghost on 15/02/2025 - 02:19

    What are your most common, top strategies and recommends for:

    • Managing cash flow and ensuring liquidity in a growing but highly seasonal and fluctuating business without maintaining a high cash reserve (overall and overlapping recommends not including emergency operating expenses)
    • Approaching succession planning in the business (to keep the continued success)
    • Exit strategies for the business (especially those have little protection against market competition)

    I know this will be more specific for each type of business and their structures, but do you have overall themes you often advise clients and things to be wary of?

    • Foggy Fluoride Stare on 18/02/2025 - 16:22
      -1

      I am surprised your question remains unanswered, especially on the second point.

      Estate planning is the most important factor for high net-wealth individuals….

      Keep those hard questions coming fast for the OP.

      • Splice89 on 19/02/2025 - 15:07
        +1

        Thanks for your question. For our business owner clients who have sold their companies, much of the cash flow and succession planning is typically managed by their accountant. However, I'm happy to share some general insights based on my experience of client's we have worked with alongside their accountant. Maintaining strong cash flow and liquidity is crucial for any business (as I know firsthand). The appropriate level depends on your business model, but given that yours is seasonal and subject to fluctuations, a higher cash reserve would likely be prudent.

        Regarding succession planning, if a sale is in consideration, it's important to ensure your business is structured correctly for prospective buyers. Your accountant can help confirm that the entity is set up appropriately, typically as a dedicated business entity without personal assets is key and generally this is a company structure (cleaner for Private Equity given flexibility). Keeping financial records up to date, including detailed board meeting notes, is also essential to provide a clear record of key decisions that have driven performance that helps with the story for the sale.

        Exit strategies can vary depending on the size of the business and may include a trade sale to a competitor, a private equity transaction, or even a public listing. Engaging a business valuer can provide insight into your company's worth and help identify the most suitable buyers.

        Where we generally come in is generally in the lead up to the business sale so all CGT / small business tax concessions can be considered as part of the sale so next steps post sale are already in place to give the client confidence that their lifestyle can continue following the transaction.

  • Unified on 15/02/2025 - 13:53

    Given many asked for Shares as an investment vehicle, what someone think of investing via StockSpot as they are diversified across all their portfolios. And the CEO Chris Brycki often shares short but good tips in public domain - any views, thoughts etc?

    • Splice89 on 19/02/2025 - 14:50

      Thanks for your question. I direct some of my client's children to places like StockSpot as I believe they do quite a good job for the mass market. The fees, however, at roughly 0.5 - 0.66% for what is essentially non-personalised product and general instead of personalised advice for a specific clients circumstances is the main criticism. Advice around structures, tax…. anything that is holistic in nature is not included in that price.

      • Unified on 27/02/2025 - 14:57

        Thanks for the reply. Their fees however goes down when the total investment amount increases.
        Do you think if one wants to proceed with investment with StockSpot for the long run instead tracking their own like keep buying ETFs etc and be able to attend the market like when you buy/sell/rebalance etc? And the fees paid to these managed environments are tax deductable?
        Lastly, any self-reading or comparison site where a close/real scenarios are analysed to see the pros and cons of using managed environment like StockSpot vs self-inversments?

  • Techefy on 16/02/2025 - 16:02

    What Would You Do If You Were Me? ($300K in Hand, 2 Years to Buy a House)

    Hello, I’d really appreciate your honest opinions on this.

    My partner and I are both 30 years old, and we’ve managed to save $300K with no debt. I earn $135K per year, while my partner is still studying and making around $35K per year (she is planning to start a job within 6 months).

    We’re planning to buy a house in about 2 years (as we’re waiting for our Permanent Residency (PR) visa grant to avoid the 8% foreign buyer surcharge tax.)

    Right now, our $300K is sitting in a savings account earning 4.9% interest (soon moving to RaboBank PremiumSaver for 5.35%).

    Moving forward, I plan to:

    • Invest future salary savings in an index fund (likely S&P 500) rather than putting them into a savings account to try and get better returns for that money.
    • Max out the First Home Super Saver Scheme (FHSSS) by contributing $15K per financial year to my super.

    Am I making the right moves?

    Would you do anything differently? Since I’ll need the money in \~2 years, I’m aware of market risks, but I also don’t want to leave too much potential growth on the table.

    Looking forward to your thoughts! Thank you very much!

    • Splice89 on 18/02/2025 - 13:06
      -1

      Thanks for your question. Basically in short, if your investment timeframe is that short (i.e 2 years) and the goal is to purchase a property with that money, then typically speaking, capital fluctations are not your friend. Due to that, your strategy at present is perfect. Maybe consider locking a portion in longer dated Term Deposits to reduce you exposure to falling rates.

      • Techefy on 18/02/2025 - 23:27
        +1

        Thanks for your response and thoughts.

  • Foggy Fluoride Stare on 18/02/2025 - 15:39
    -1

    Do you have any comments on your conduct in this thread since you have been disengaging and evading questions?

    I take note for everyone to look at this:

    Unethical Behaviour
    Mirror for those not registered users

    Is that the behaviour you want from someone managing your money?

    I surely hope not, and you should be glad you didn't actually tell us what your firm is called. I am sure your peers in your industry would be ashamed of your behaviour.

    The vibes don't lie to me. You had bad vibes. The other poster thought I was being harsh, but those vibes are real.

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