Centaur Financial Services work as your partner, helping you navigate through the financial ups and downs life throws at you. First it starts with your goals. Then it’s a lifelong commitment to achieving short, medium and long term objectives through a range of financial strategies and structures.
Services we can assist you with include:
We know that financial advice adds value to clients, not just through saving taxes or structuring their assets effectively or helping them grow their wealth, but through adding peace of mind knowing that we are applying the right strategies for you. One of the great problems nowadays is not lack of information but too much information and this leads to ‘paralysis by analysis’. Our role is to listen to you, understand your position and goals and then go about selecting the right financial strategies to give you the highest probability of reaching your goals whether it be paying down your mortgage, reducing tax, planning for your superannuation, protecting your family and so on we can develop the right strategy for you in a cost effective and tax effective manner.
Did you know that the average mortgage is around $300,000 and if you are making the required repayments over 30 years at a 6.5% long term interest rate your total repayments would be $682,636, in other words you have repaid 227% of what you originally borrowed. If you could repay that home loan in 12 years you would be saving $263,206 in interest which you could put towards making yourself rich, not the banks.
Have you asked yourself how much income you will need in retirement? Do you think you will be able to get an age pension? Do you know how much capital you will need? Do you know what age you will retire? Do you know what you want to do in retirement? We assist clients everyday with answering these questions along with a host of others. We have a proven approach to investing that can help clients get through the investment up’s and down’s while they can still receive a regular ‘pay cheque’ like you have your entire working life.
Superannuation is one of the most misunderstood investment vehicles on offer. It does not help that the government constantly changes the goal posts however it can still be one of the most tax effective vehicles for clients to utilise with 15% tax on earnings and 10% tax on capital gains compared to individuals paying up to 45% and 22.5% on earnings and capital gains respectively. There has been a lot of scrutiny within our industry on fees but like anything in life you get what you pay for (would you go to the cheapest surgeon) and while we agree that you should not pay anymore than you have to, the number one goal is to help you reach your retirement goal, not pay low fees. The common questions we answer of our clients here are how much to contribute, should insurance come through superannuation or outside superannuation, should I have a SMSF, what investments should I be in.
SMSFs are a tool for risk management, investment management, retirement planning and estate planning. The benefits are control, tax effective investments, costs (for balances greater than $200,000), and flexibility. Some of the disadvantages are lack of diversification, and lack of skill and knowledge. There are obligations and responsibilities to running a SMSF which means that there are risks that need to be managed. SMSFs should not be entered into lightly and you should remember the primary purpose of running a SMSF is to provide for your retirement, not for buying personal assets.If not run properly the penalties can be devastating to your retirement nest egg.
Is your estate structured in a tax efficient manner. Estate planning seeks to ensure that your estate is passed on to your intended beneficiaries in a timely and tax-efficient way. The choices you make can have significant implications for the tax that your beneficiaries will pay on your assets, as well as how and when distributions can be made. It can also be important to consider the affect on Centrelink benefits of your intended beneficiaries.
Each clients goals and objectives are different and therefore it makes sense that each portfolio should be different and individualised to meet your personal needs. After we have ascertained your goals and objectives we determine how much money you will need from your investments within the next few years (in particular retirees drawing an income stream), how much you will need for big ticket expenses within the next five years such as home renovations, overseas trips, children’s education, etc. From here we look at your risk tolerance as well as capacity to take risk and formulate a strategy for how and where you should invest your capital (generally referred to as asset allocation). Short term money needed will be invested in low risk low return investments where as money not needed for five years plus will be invested in growth assets which despite some higher risk offers a significantly higher return. There is no ‘risk free’ investment and the five main risks to anyone’s portfolios are business risk, financial risk, market risk, purchasing power risk, interest rate and reinvestment risk. We seek to minimise the damage these risks have on a clients portfolio through monitoring and reviewing investments, diversification, and rebalancing investments where appropriate. Our investments are not done in a set and forget manner as the Global Financial Crisis proved that this method is flawed and clients can lose money permanently. Good portfolio management is buying assets low and selling assets high. This approach despite sounding easy is very difficult to do (how many people invested in the share market in 2009 when it was at its lowest FYI it has gone 54% in the three years since).
While you should never make an investment for tax reduction only (these investments tend to lose all their value) you should not pay more tax than you have to. Through working out your goals we can then go about working on the most tax effective strategies for you from salary sacrificing into super to buying an investment property or other negative gearing strategies to making investments in the right name for the right reasons, there is a number of strategies available to assist you in reaching your goals in the most tax effective way.
For a lot of people this can be the foundation of financial success. Have you have said about your money ‘I don’t know where it all goes’ then you probably should find out. By reviewing your current spending patterns we can start to see where it all goes (which can be scary). Most people’s two biggest expenses are taxes and interest so we need to find the most appropriate strategies such as re-structuring your investments, taking full advantage of superannuation and maximising your deductions and rebates. For most clients unless they change their habits by putting a system in place that harnesses and directs their income, reaching their financial goals will be a challenge.
Whatever your current situation, Centaur Financial Services works with you to create a workable plan that grows as your needs develop.
We provide you with education to equip you to take charge of your financial future, which puts you in a stronger position to achieve your goals.
As a client of Centaur Financial Services you receive ongoing support and encouragement to revisit your objectives on a regular basis through reviews lead by your adviser, topical seminars and access to further information and research.
Our commitment to you
We understand that the world of financial planning can feel like a maze. The most important first step you can make is to choose a professional that you feel comfortable with. When working with a financial adviser, the critical attributes to look for are great service and quality advice.
Our Service Guarantee to you:
Understanding: we get to know you, what is important to you in your life, what you want to achieve, what you feel comfortable with, and what you expect from the financial planning experience.
Confidence: we know you want reassurance that working with us is going to bring you closer to your goals, that you have a professional to guide you. We rise to the challenge.
Peace of mind: knowing that you’ve laid your best plans and can sit back and relax is invaluable to you. We make this our objective for you as well.
Accessible: lifetime financial planning is a long term commitment for you and for us. Our relationship continues well after our first meeting and we want you to know we’re here to support you.
Our Advice Guarantee to you:
Relevant: each client is unique and requires a fresh approach.
Compliant: we won’t take shortcuts with your future.
Holistic: a good financial planning strategy looks at the full picture. It’s important to know that every part of your plan is working together.
Education: providing you with simply the best advice is not enough. We want you to understand exactly what is happening so you know you are in the driver’s seat.
Up to date: we stay current and ahead of the latest trends in financial planning and structure.
Traditional: while we’re current we don’t forget the basics and we’re certainly not afraid of good old fashioned hard work.
The advice process
Centaur, utilises a unique seven step financial planning process, endorsed by Australia’s national Financial Planning Association (FPA).
C – Compile information about you and your financial situation.
E – Examine your financial and personal goals and objectives.
N – Navigate through a maze of financial issues, investigating any potential issues as we go.
T – Tailor a personalised solution and financial plan to meet your objectives.
A – Action the strategies implement to meet your objectives.
U – Understand your advice and recommendations, while also increasing your knowledge.
R – Review and monitor your financial planning strategies regularly or as your circumstances change.