Information You won’t get from Unlicensed Accountants #26

May 19, 2020


Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.


As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.


This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.


How do retirees see risk?


Risk is a far more complex issue than many retirees understand. Some of the most common responses from retirees around what they consider risk to be will elicit responses such as:


  • “I don’t want to run out of money”

  • “I want to leave some money to my kids / grandkids”

  • “I hope I don’t retire just before or at the beginning of another GFC type event”


Addressing these more human emotions around risk, while at the same time ensuring clients understand the more technical issues around risk is often a dilemma. Issues around the appropriate level of risk a retiree needs to consider must also address:


  • the future purchasing power of money, which will be affected by inflation levels

  • monitor liquidity risk to ensure enough money is available to cover life’s necessities

  • where do I invest with interest rates at rates close to zero in many economies around the world


This is where the common Aussie investor's strategy of FC & HFTB (Fingers Crossed & Hope For the Best) can result in some poor outcome for retirees. Retirees and pre retirees should seek expert professional financial planning advice as soon as possible to prepare for the unique risks retirees will face.


”If a business does well, the stock eventually follows”. - Warren Buffett

Share on Facebook
Share on Twitter
Please reload

Featured Posts

Insights & Investment Solutions Magazine - Winter 2019

July 17, 2019

Please reload

Recent Posts
Please reload

Merit Planning (East) Pty Ltd ACN: 612 699 555
Asic No. 1246989 is an authorised representative of Merit Wealth Pty Ltd ABN: 89 125 557 002 (AFSL 409361)

2016 Merit Planning (East) Pty Ltd 

T:  02 8076 6026

M: 0432 988 773

Level 21, 133 Castlereagh St
Sydney NSW 2000


PO Box Q1071

Queen Victoria Building NSW 1230