It pays to get advice
As a business owner, here are some important questions to ask yourself:
- Do you have outside investments, or is all your money tied up in your business?
- Do you have any contingency plans in place for your business if you were unable to work, or if you died?
- Do you know what will happen to your business when you retire?
- Are you sure you will have enough money for your retirement?
- Do your employees have the most tax-effective salary arrangements?
- If you have a financial plan, have you reviewed it recently?
- review your business financials and develop a plan
- show you where the opportunities are to make the most of your cash flow
- suggest investment opportunities to increase your business wealth
- set up or recommend the best super arrangements for your business keep you up to date on your legal obligations as an employer
- protect your business through insurance cover and succession planning strategies.
What to bring to your adviser meeting
The first time you meet with a financial adviser, they’ll want to know about you and your life. They need to understand your current situation and your goals so they can provide you with tailored advice. They’ll want to know about:
- you—your age, how healthy you are and how many children you may have
- your business—how long has it been running, how has it been performing and how much does it cost to run
- your super and insurance details
- your income and expenses—your income, your family’s income, any future income, any inheritance and your day-to-day expenses
- your investments—current and planned investments, and assets and liabilities
- your tax situation—tax paid and tax owed.
In addition to this, they’ll need to know what your plans for the business are. Do you plan to grow it? Hire more staff? Renovate? They’ll need to know your goals and objectives to help personalise their advice.
Your adviser will take this information and come back to you with advice. Then it’s up to you to decide how you’d like to use their recommendations.
Getting the most out of your advice
Your adviser will make some recommendations based on their analysis of the information you’ve provided them. They’ll give you a document called a statement of advice (SOA) which includes their recommendations.
The advice they give is just that—recommendations, and it’s up to you to decide if you’d like to go through with them. You should always read through the SOA and make sure you understand how it works in detail before committing to any actions.
Financial advice shouldn’t end with the handover of an SOA. Go through your advice and ask your adviser any additional questions you have.
- Do you understand the advantages and disadvantages of their advice?
- Do you believe they have carefully gone through your information and provided you with tailored advice?
- Have different alternatives been identified?
- Has the adviser taken your risk tolerance into consideration?
If your adviser has recommended any products as part of their advice, they’ll provide you with the Product Disclosure Statement (PDS) for these products. The PDS outlines the features and charges of the product. It’s recommended you review this in detail at home and only agree to take on the product if you understand its advantages and disadvantages.
Important informationShow more
It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.
This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.
The credit provider and product issuer of AMP Bank products is AMP Bank Limited, Australian credit licence 234517.