Are You Sitting on a Rotting Nest Egg?
My favourite part of my job is opening people’s eyes to how the financial system is often taking them for a ride and then helping them do something about it!
When it comes to people needing help with seeing the reality of the situation, the numbers are startling.
Deloitte Access Economics and comparethemarket.com.au surveyed 3,000 people to compile The Financial Consciousness Index and found:
· Less than half (40%) of Australians meet the basic threshold for financial literacy and capability.
· 41% of Australians with a mortgage don’t check interest rate changes because they either have no interest, don’t know what the RBA cash rate is, or do not see the relevance to them.
· And of those with a mortgage, 68% of Australians said they have not stress tested their home loan.
· 45% of Australians do not trust insurance companies or retail banks, a significantly higher figure compared to other financial institutions.
· Only half of Australians are confident that they’re getting the best deal on all their financial products (and I’d argue many of the remaining 50% think they’re getting the best deal, but probably aren’t).
· On average, 28% of Australians know there is a better deal on their superannuation, home loan, health insurance and credit card but do not act on it.
Why does it appear there is so much apathy amongst us?
Well, I’d argue the biggest cause is information overload and analysis paralysis… there are so many options and so many things to choose from that people get overwhelmed and find it easier to put their heads in the sand and do nothing.
Trust me, I know how much information is out there as I’ve spent almost two decades working in the financial services industry and I’ve heard all the sales pitches, all the theories, all the rip-offs.
That’s why I am so passionate about being an independent financial adviser who recommends what works. Not what product needs to be sold to get a bonus or a commission.
Your mortgage and your superannuation are two important, if not the two most important, financial products you will ever have to choose in your life. I’m not a mortgage broker, but I can put you in touch with the best in town, and when it comes to your superannuation, I’ll help you get the most out of your retirement nest egg so that it’s working hard for you.
I see people every week who’ve been put into expensive, fancy-looking super funds (and investments) that are not getting the job done. I see others who’ve been sitting in underperforming default super options, just last week it was reported that the Productivity Commission estimates there is about $57 billion sitting in default options that have been underperforming!
If you’re not sure how your super is invested or should be invested, not sure if your fund stacks up, then give me a call. The cost of sitting on a rotting nest egg is likely to be hundreds of thousands of dollars!
Combine a super-charged superannuation strategy, with great cashflow management, debt-repayment, investment and retirement planning strategies (and a super-competitive mortgage interest rate) and you go from being on the path to financial regret to being on the path to financial freedom!
That’s because today matters tomorrow.
If you’d like to find out more about how INDEPENDENT financial advice could help you manage cash flow, pay off the mortgage faster, get the most out of super and invest wisely, then get in touch on 0411 484 464 or head to wealthtrain.com.au.
Daniel McGregor is the man behind Wealth Train and is a member of the Independent Financial Advisers Association of Australia. This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided are general advice only.
Daniel McGregor and Wealth Train are authorised representatives of Independent Financial Advisers Australia AFSL 464629d