The core services for which our practice is recognised are:
Designing Retirement Strategies
We can help you in designing personal retirement strategies which transition you from wealth builders to wealth spenders.
It is not unusual for us to find that clients have accumulated financial assets throughout their life without ever considering how those assets will generate an income for them when they cease to be employed.
Properties and portfolios purchased with negative gearing in mind during a lifetime of work can create a tax burden in retirement.
The switch that you make from working to generate an income to living off the assets you have accumulated can have significant tax inefficiency if not anticipated and remedied in advance.
Providing Comprehensive Investment Portfolio Advice
The financial planning industry has been dominated by the use of managed funds to construct investment portfolios. These managed funds are not only used by a large proportion of financial advisors but also by Industry Superannuation Funds as an easy way to diversify their portfolios and to collect bonuses for supporting one or other provider.
Bache Morris have advised their licensee (millennium3 Financial Services Pty Ltd) that they will not be a part of any competitions or bonuses that involve meeting sales targets. In addition we take care to build portfolios using low-cost indexed funds and direct equities so that the average management cost of our portfolios potentially save our clients up to 0.75% of the value of the portfolio per annum.
Potentially holding direct equities may provide further benefits to a portfolio in that the full tax benefit that comes from imputation credits potentially reduces any CGT effect and has a significant long-term benefit for the portfolio.
The top 5 money concerns for retirees are:
1. What if I make a bad investment?
The biggest concern that retirees face is the fear they will "make an irrecoverable financial mistake". Once retired there is a limited pool of investments available and mistakes are expensive. This often translates directly into a lower standard of living. Some retirees are paralysed by this fear and fail to take advantage of the opportunities that are available, also lowering their standard of living they could be enjoying. This is often the motivation for seeking professional help from a financial planner.
2. Who will help my partner manage our money if I die?
The next biggest fear cited by retirees is who will look after the money for their spouse if they pass away. Often one person in a family is primarily responsible for managing the money and they are often fearful of leaving their partner with little knowledge or experience if they pass away. Many of these people will benefit from finding a financial planner they trust who can work with their spouse if necessary.
3. What if I run out of money?
Running out of money is never far from the mind of retirees and a long-term plan is the best solution for this. If you can see where your money is coming from and what you are spending, as well as the long-term outlook, this fear can be easily alleviated.
4. If I require assisted care, how will I fund this?
Retirees also know that their health will inevitably decline and they will need assistance later in life. Having a plan in place and organising the required paperwork well in advance can relieve that stress and also make the required care much easier to implement and manage. Good preparation can make this a lot less painful for the retiree and the people caring for them.
5. How should I distribute my money when I pass away?
Legacy issues are often one of the major concerns of retirees. When they pass away, how will their estate be managed and can they maximise the value of what they might leave to their children? Estate planning addresses all the issues including effective tax structures, access and control, and the best family law protection for children and grandchildren.
Aged Care Considerations
Around 59,000 people will enter an aged care facility this year. Entering an aged care facility can place great demands on the soon-to-be resident and/or family members who may be assisting them. Emotions will be running high and conflicts can arise due to the financial decisions that need to be made. Often, whether to sell the family home can become a contentious issue. If a member of the family has been given the role of power of attorney, they will require guidance on the decisions that they can make on behalf of their parents.
Our role is to provide you with our experience and expertise to assist you to decide whether to sell the family home, and to invest your capital to minimise aged care costs and maximise social security entitlements. At times we are asked by our clients to assist by negotiating on their behalf with aged care facilities and sitting in on meetings between the facility and residents and/or family members.
At Bache Morris Financial Advice we believe that how we treat our senior citizens is a reflection on us as a society and we relish the opportunity to make the transition to aged care a pleasant experience for all the stakeholders involved.
Financial Ombudsman Service (FOS) Claim Management
Our industry, like any other industry has its share of lazy and opportunistic advisors. Financial advisors are required to be authorised by a Licensee who obtains their license from the Australian Securities and Investment Commission (ASIC) and who are also required to provide at no cost to their clients the services of a complaints service or ombudsman. Although the service is free, the language of the industry can be confusing and the process can be long and drawnout. For these reasons many frustrated clients pull out of the process.
Bache Morris has been successful in assisting clients through this process and receiving compensation from the offending advisors’ Licensee. We are not proud that our industry requires these services, but it is satisfying being able to assist clients to financially put their lives together again.
Some of the tools we use to achieve these services are:
• Managing cash flow
• Goal setting
• Building wealth
• Growing super
• Self-managed superannuation funds (SMSFs)
• Insurance advice
• Transition to retirement (TTR)