Investment advice Newcastle | Lake Macquarie | Hunter Valley

Investment advice is guidance or recommendations from a financial professional regarding which investments (such as shares, bonds, or real estate) suit you and your financial goals, risk tolerance, and current financial situation.

This helps you make informed decisions on where to put your money to get the best returns while managing risks.

Understanding the financial markets is critical to making these informed investment decisions as it allows you to evaluate the qualifications of those giving advice and the information sourced from the financial markets.

In Australia, only licensed financial advisers can give investment advice.

They must have an Australian Financial Services Licence (AFSL) or be Authorised Representatives of an AFSL holder, as required by the Australian Securities and Investments Commission (ASIC). This means they meet professional standards and give advice tailored to individual financial needs.

Clients should ask for a Financial Services Guide to see what services their adviser offers.

Getting investment advice is essential to help you make decisions that are right for you, your goals, your timeframe, and your risk tolerance.

A qualified adviser can give you tailored strategies, help you through complex financial products, and manage risks, leading to better outcomes, financial security, and well-being. Good investment advice can also stop you from letting your emotions get in the way and making costly mistakes.

You can get investment advice at any age, but the earlier, the better.

Getting advice in your 20s or 30s helps establish good financial habits, plan for long-term goals like retirement, and make the most of compound returns. However, investment advice is also valuable at later stages of life, especially when nearing retirement or going through significant life changes.

The cost of investment advice in Australia varies depending on the adviser and the services provided. Fees can range from a flat fee, often between $3,000 and $6,000 for a comprehensive financial plan, to ongoing advice fees of 0.5% to 1% of your portfolio’s value. Some advisers may charge hourly rates or specific fees for consultations. Make sure to ask for a transparent fee structure upfront.

Finding a financial advisor you can trust and who gets you is critical to your financial happiness. Here are the things to consider:

1. Licensing and Qualifications:
   • AFSL: Ensure they have a current Australian Financial Services License (AFSL) to meet the regulatory requirements to give financial advice.
   • Qualifications: Look for CFP or CFA qualifications so they are super bright.
   • What services do you need (e.g., financial planning, investment advice, retirement planning, estate planning)? Choose an advisor who offers those services. A comprehensive approach is good for the overall picture.
2. Experience:
   • Consider their experience, especially with your situation or goals (e.g., small business owners, retirees, young families).
3. Fees and Transparency:
   • Know the fee structure completely. Do they charge a percentage of assets under management, fixed fees, hourly rates, or commissions? Transparency is vital to no surprises.
4. Associations:
   • Membership of the Financial Planning Association of Australia (FPA) means they adhere to a code of ethics and ongoing professional development.
5. Finding the Right One:
   • The right advisor is the one you feel comfortable with, who listens to you and gives clear, straightforward advice. Ask questions and shop around before you decide.

At Collective Financial Partners, we believe in a one-on-one approach to financial advice. Here’s what you can expect when you collaborate with us:

1. Initial Consultation: We’ll get to know you – your financial situation, goals, dreams, and risk tolerance. This helps us create a plan just for you.
2. Personalised Financial Plan: Based on your needs, we’ll create a financial plan outlining budgeting, saving, investing, retirement planning and more.
3. Investment Advice: We’ll provide investment advice on asset allocation, diversification, and risk management strategies to help you build a portfolio that meets your goals.
4. Ongoing Support and Reviews: Financial planning is not a one-off. We’ll provide ongoing support, regularly reviewing your plan and investments to make necessary changes based on your circumstances and market conditions.
5. Clear and Transparent: We believe in transparency and open communication. We’ll explain everything in plain English, answer your questions thoroughly and keep you informed every step of the way.

At Collective Financial Partners, managing risk is just as crucial as getting returns. Here’s how we approach risk management in your investment portfolio:

1. Risk Tolerance: We’ll assess your risk tolerance – how comfortable you are with investment volatility. This is the first step in designing the right portfolio for you.
2. Diversification: “Don’t put all your eggs in one basket” is a basic investing principle. We’ll create a diversified portfolio across asset classes (e.g., shares, bonds, property) so one investment doesn’t drag the whole portfolio down.
3. Growth and Defensive Assets:
   • Growth assets like shares and property can deliver higher returns over the long term but are more volatile.
   • Defensive assets like bonds and cash are more stable and help smooth out your portfolio during market downturns.
4. Regular Portfolio Checks: We’ll do regular checks to review your portfolio’s performance, make sure it’s on track with your goals and risk tolerance and adjust as needed based on market conditions or changes in your life.

Our Commitment: We’re dedicated to crafting investment strategies that balance risk and potential reward to help you confidently pursue your financial goals.

Collective Financial Partners can help with financial advice by providing personal strategies to grow wealth, plan for retirement, invest wisely, manage risk, and achieve financial goals.

Our experienced advisers will provide personal advice based on your circumstances so you can make informed financial decisions.

With superannuation, tax planning, and investment management expertise, Collective Financial Partners can guide your financial affairs for long-term success.

Contact Collective Financial Partners today to book a no-obligation appointment.

The coffee is on us.