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Archive for the ‘Financial’ Category

There’s a lot of misconception about financial planning and how it can help you.  Here is a list of the top 6 myths surrounding financial planning.   We hope that by dispelling some of these common myths you can get a superior understanding of financial advisers and how they can assist you to achieving financial prosperity and security.

Myth #1: Only people who have already accumulated wealth and/or assets can see a financial adviser

This is one of the biggest myths surrounding seeking professional financial advice.   Most people believe that you need to have already established yourself financially before a financial planner can help you.   Some financial advisers will only want to work with you if you have some established assets as by advising you on how to allot this wealth this grants them to be paid.   At Financial Spectrum, our financial advisers are fee-for-service, or charge a flat fee instead of earning a commission.   This means that they are healthy to assist you in accumulating wealth through things such as setting up savings plans and budgeting, whereas other advisers won’t as they wouldn’t acquire a commission for this advice.   The value of advice at the primeval stages of your life can be just as great, if not greater than when you have already built up your wealth.

Myth #2: Financial Planners just sell their clients managed funds

Many people believe that financial planners just sell managed funds to their clients.   This isn’t true.  Whilst a financial adviser can advocate their clients invest in specific investments as one tool to help grow their wealth, a holistic financial planner will look at areas such as debt reduction, tax minimisation, property, shares, superannuation, insurance, and cash flow just to study a few.   All of these areas are important when looking to grow and secure wealth – not just investing into products.   Some financial advisers have a greater emphasis on placing their clients into managed funds as this provides them with payment via a commission.   This perhaps might explain why this myth is a common one.   Not all financial advisers are equal however.   Financial Spectrum is in the minority when it comes to offering clients truly holistic advice.   Because Financial Spectrum doesn’t acquire commissions, its’ financial advisers place just as much emphasis on areas such as paying less tax and budgeting, as placing clients in managed fund investments.

Myth #3: I’ve already got an accountant, so I don’t need a financial planner.

Many people already have an accountant that they know and trust for their financial needs so they don’t think that they would benefit from seeking the services of a financial planner.   What most people don’t comprehend however, is that even though it is very important that accountants and financial planners work together in partnership, both fulfil very different needs.   Financial advisers are trained to take a more holistic approach to your finances than accountants are.   Whereas an accountant will complete your tax return or offer advice for small business, a financial planner will work with you on understanding your life goals and help to implement a financial plan to help you achieve them.

At Financial Spectrum, we work closely in partnership with accountants to ensure that our clients receive the benefit of a team approach.

Myth #4: I don’t need a financial planner – I’m nowhere near close to retirement

A common misconception is that financial planners are only to help retirees or people starting to think about retiring.   This is very far from the truth!  Whilst it is true that there are many financial advisory firms whose target market are retirees, at Financial Spectrum we believe the true value of financial advice can be gained by starting early.   Most of our clients are younger professionals in their 20s, 30s and 40s who are at the accumulation stage of their lives.   We know that we are in the minority when it comes to our competitors but we are passionate about helping young Australians get ahead financially.   We help our clients to map out the goals they want to achieve in the short, medium and long term, and work with them to implement a financial plan to help achieve these goals.   Time is your biggest ally when it comes to setting yourself up financially – so don’t move until you are in your 50s and 60s to begin planning for the future!

Myth #5: Financial planners charge too much and get hefty kickbacks from companies they advocate their clients invest in

Financial planners have received a lot of bad press over the years and the result is that many Australians have a very negative view of the trustworthiness of the financial planning industry.   In truth, individuals authorised to wage financial advice to people in Australia are bound by strict regulations from the Australian Securities and Investments Commission (ASIC).   All remuneration received by implementing a proposed financial plan must be clearly outlined in a Statement of Advice (SoA) which must be given to the client.   This enables transparency in the financial planning process so that you know exactly how much your financial adviser will be paid in relation to your financial plan.

At Financial Spectrum, we’ve gone one step further and developed a fee-for-service or a fixed fee payment structure so that we don’t receive any commissions from any investment product that we advocate to our clients.   This means that our clients pay for our advice.   We believe that this fee structure helps to protect our clients from potential conflicts of interest.   In addition we offer a range of packages for our clients to choose from so that they can feel comfortable that they’re getting value for money.

Myth #6: All financial advisers are the same.   Shouldn’t I just see the adviser at my bank branch?

There are financial advisers, and then there are financial advisers.   Whilst it’s true that all financial planners in Australia must be authorised under a financial planning licence from ASIC, it is important to know that there are potential conflicts of interest that might arise by seeking the services of a financial adviser who is connected to a big institution – be that a bank or other financial institution.   Why?  Financial advisers who are part of financial institutions who offer their own financial products (eg. life insurance and investments) will likely be restricted to a small selection of products that they can offer their clients.   This means that if you went to Bank XYZ seeking advice and the financial planner at Bank XYZ identified that you need income endorsement – it is likely that they’ll be restricted by the XYZ Bank to only wage you with advice to obtain an XYZ Income Protection policy.   The problem is that your XYZ financial adviser might know that a superior policy for your situation can be provided to you by ABC Life Insurance, but because they are part of the XYZ institution, they can’t offer this policy to you.

The good news is that not all financial advisers in Australia are part of big corporations and therefore are superior healthy to wage you with a wider selection of investment and insurance products from a range of providers in Australia.   These financial advisers tend to be known as “boutique” or “privately-owned” financial planning firms as ASIC restricts the use of the word “independent”.   These small boutique financial advisory firms are in the minority as many have been purchased out by the larger institutions and do not have the big monetary resources of their competitors, but they are out there and can offer you great financial advice.   Financial Spectrum is one such privately-owned financial planning firm based in the Sydney CBD.

www. wellnessom. com A great introduction by Robert Kiyosaki about how important is to build and develop income skills. Scape of the rat race now! Robert Kiyosaki the famous Richdad author reveal the secrets of the rich. . . .

(link to lesson 2: www. youtube. com Lesson 1 – Revisiting American History, documents the conversion of the US into a monolithic financial empire as the Federal Reserve Act created a monopolized cartel of private interests, “Wall Street,” that controls all money in the system. This killed Jeffersonian ideals and granted vertical Hamiltonian forces to have free reign to consolidate power and wealth. It explains how this is an empire system where the top Wall Street banks are similar to feudal lords and multi-national corporations are their feudal knights out conquering territories. It rewrites American History books.

www. ted. com Even as mega-banks topple, Juan Enriquez states the huge reboot is yet to come. But don’t look for it on your ballot — or in the stock exchange. It’ll come from science labs, and it promises keener bodies and minds. Our children are going to be . . . different. TEDTalks is a regular video podcast of the ideal speaks and performances from the TED Conference, where the world’s leading thinkers and doers give the speak of their lives in 18 minutes. Featured speakers have included Al Gore on climate change, Philippe Starck on design, Jill Bolte Taylor on perceptive her own stroke, Nicholas Negroponte on One Laptop per Child, Jane Goodall on chimpanzees, and “Lost” producer JJ Abrams on the allure of mystery. TED stands for Technology, Entertainment, Design, and TEDTalks cover these topics as well as science, business, development and the arts. Watch the Top 10 TEDTalks on TED. com, at http

2nd Nov 2008. John Bird and John Fortune on Silly Money satirising the absurdity of the financial crisis.

Peter Schiff (Ron Paul financial advisor) points out that the government destroyed the United Says Economy. Let the free market sanitize the markets. The Dollar will go into free fall. Washington Mutual Inc was shut by the US government in by far the largest unfortunate of a US bank, and its banking assets were sold to JPMorgan Chase & Co for $1. 9 billion. ADVERTISEMENT Thursday’s seizure and understanding is the latest historic step in US government attempts to clean up a banking industry littered with toxic mortgage debt. Negotiations over a $700 billion bailout of the entire financial system stalled in Washington on Thursday. Washington Mutual, the largest US savings and loan, has been one of the lenders hardest hit by the nation’s housing bust and credit crisis, and had already suffered from soaring mortgage losses. Washington Mutual was shut by the federal Office of Thrift Supervision, and the Federal Deposit Insurance Corp was titled receiver. This followed $16. 7 billion of deposit outflows at the Seattle-based thrift since Sept 15, the OTS said. “With insufficient liquidity to meet its obligations, WaMu was in an unsafe and unsound condition to transact business,” the OTS said. Customers should anticipate business as usual on Friday, and all depositors are fully protected, the FDIC said. FDIC Chairman Sheila Bair stated the bailout happened on Thursday night because of media leaks, and to calm customers. Usually, the FDIC takes control of unsuccessful institutions on Friday nights . . .

Yale hosted a panel discussion with Yale Faculty on the National Financial Crisis, to discuss developments since the February 25, 2009 panel discussion. Panelists included John Geanakoplos (James Tobin Professor of Economics) and Robert Shiller (Arthur M. Okun Professor of Economics). The discussion was moderated by Yale University President Richard Levin (Frederick William Beinecke Professor of Economics).

This video based on the cry engine (games: crysis, crysis warhead) At the beginning you hear marc faber speaking about the financial system 12. 10. 2008 the financial system was almost on a total colapse. After that, they’re pumping more money into the system as the ever have done, to refrain a colapse and chaos Update 04. 08. 2010 Billionaries spend have of their money: Kalifornien Eli and Edythe Broad Michele Chan and Patrick Soon-Shiong Ann and John Doerr Larry Ellison Barron Hilton Joan and Irwin doc Lorry I. Lokey George Lucas Alfred E. Mann Tashia and John Morgridge physiologist and Barbro Osher Herb and Marion Sandler Jeff Skoll Tom Steyer and Kat Taylor Nebraska Warren Buffett Walter Scott, Jr. New York Michael R. Bloomberg Barry Diller and Diane von Furstenberg Elaine and Ken Langone Ronald O. Perelman Peter G. Peterson Julian H. Robertson, Jr. David Rockefeller Jim and Marilyn Simons Sanford and Joan Weill Shelby White Georgia Bernie and Billi Marcus Ted Turner Hawaii Pierre and Pam Omidyar Washington, DC / Maryland David M. Rubenstein Vicki and Roger Sant Michigan Thomas S. Monaghan Missouri Jim and Virginia Stowers Oklahoma George B. Emperor Pennsylvania Gerry and Marguerite Lenfest Texas Laura and John Arnold T. Boone Pickens Utah Jon and Karenic Huntsman Washington Paul G. Allen Bill and Melinda Gates Song: ccmixter. org Piano 09 (Am Piano 4 cc)

Bird and Fortune on the Credit Crunch.

An Argentine view on the Global Financial Crisis, describing the whole Global Financial System as one vast Ponzi Scheme. Like a pyramid, it has four sides and is a predictable model. The four sides are: (1) Artificially control the supply of public State-issued Currency, (2) Artificially impose Banking Money as the primary source of funding in the economy, (3) Promote doing everything by Debt and (4) Erect complex channels that grant privatizing profits when the Model is in expansion mode and socialize losses when the model goes into contraction mode.