Frequently Asked Questions
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Hudson Financial Planning FAQ's
Discover our most commonly asked questions.
Why do people engage financial planners?
An ASIC report paper released in August 2019 highlighted some of areas that consumers look for in regards to financial advice. The paper offered survey results which showed that 79% of people use an adviser because they believed they had the expertise in financial matters that they did not. 75% believed that Financial advisers can recommend products that they wouldn’t probably find on their own. 73% were excited with the notion that their adviser might offer a strategy they hadn’t thought of and 69% were looking for the financial education about financial matters from their adviser.
Do you operate under a larger dealer group where you are confined to an approved product list that you have no control over or are you able to control what products you recommend through an open license under ASIC?
Hudson operates an open license and therefore has the ability to offer any product the advisers deem suitable. The advisers and managing Director meet monthly as part of an investment committee to discuss Hudson approved product list. We are not owned by banks, or any other institution.
How do you get paid?
Hudson advisers get paid a percentage of the funds under management that they look after. This means that they are able to recommend any fund (as long as our investment committee has approved it) and it will not affect how they are paid. Hudson advisers charge a percentage and this percentage will vary with the amount invested. Our economies of scale allow us to offer fees at very competitive prices.
What are your financial qualifications?
Hudson’s Senior Advisers all have the relevant qualifications and the up to date personal development study to ensure that they are compliant and are across all legislative changes in the industry.
How will our relationship work?
You may want to know how often you will talk with your adviser, whether your adviser will be available for emails outside of scheduled calls and what you can expect with your relationship. Each of our senior advisers has a paraplanner that works with them. For the more complex situation you can expect to have potentially quarterly reviews, with access to your adviser or paraplanner via email anytime and a collaboration of advice between your Hudson adviser, your accountant (if using a Hudson accountant or introducing your accountant to your Hudson adviser) and our estate planners (if using a Hudson estate planner). For the more simple investment you can expect one to two reviews a year with access to the paraplanner anytime.
Your adviser is there to clarify your financial life, not make it more confusing, Hudson advisers provide clarity and direction so that together you can work through whatever the future brings.
What is the difference between an accountant and a financial planner?
A financial planner and an accountant are both crucial in planning for your financial future but they are both different professions. Financial planners help you make decisions with your money and can focus on single issues such as a redundancy payout, or can be more of a bigger picture of your lifetime wealth.
Accountants help in understanding structures, how taxes work, how to maximise your returns after tax, use of investment companies and trusts as well as providing advice around growing a business.
Tax plays such an important role in growing your wealth, that is why it is important that your adviser work directly with one of our specialist tax partners or team up with your chosen accountant to maximise your benefits and to work seamlessly towards your financial goals. Having the right tax structure is key to minimising your tax obligations as is knowing what you can and can’t claim. It is important to make sure that you’re getting the most out of tax time by ensuring that you’re claiming all the tax deductions you’re entitled to.
Unless your accountant has an AFSL (Australian Financial Services License), they cannot provide advice about financial products. Without an AFSL an accountant cannot advise a client to establish a SMSF, but they can administer it as long as the client has received separate independent advice from a financial planner. A statement of advice mist be obtained from a qualified financial planner outlining the benefits of using a SMSF and from there your accountant can hep set up the fund. Building a team of experts can help you to break free from money worries.
A good accountant should take a holistic approach and work with your adviser to take into consideration your personal lifestyle objectives.
Hudson work in collaboration with 2 very experienced accountants who are dedicated to working with your Hudson adviser to ensure that your financial plan takes into consideration every angle.
Can you help with estate planning?
Hudson advisers understand that your estate plan is one of the most valuable assets you can have. Knowing that you can protect your family and leave a legacy that secures their future is about more than money. Hudson work with 2 very experienced estate planners to ensure that no matter how much money you have, you are leaving a legacy, both a personal and financial one, for those you love.
Is ongoing finance advice worth it?
Financial advice is for anyone who has financial goals or a specific financial circumstance, like a redundancy, and isn’t sure what is the best way to approach it.
There are many circumstances where financial advice may benefit you; buying a home, retirement, planning for your children’s future, a divorce, a new career, a marriage, inheritance, and many other life changing events.
Getting the right financial advice can deliver more than just better investment outcomes, according to the Financial Services Council recently released research paper titles, THE FUTURE of ADVICE, prepared by actuary Rice Warner. The research estimates that those who obtain professional advice accumulate at least three times more assets after 15 years than those who make their own decisions. The younger the advice starts, the better the cumulative increase. Regardless of wealth level for an individual aged 40, about half the value of the advice is derived from simple guidance in respect to savings. But its not just better investment outcomes, it can result in an increased peace of mind, lower stress in relationships and even higher happiness levels.
Do you have the skills and experience to manage your finances, time to research financial products and are you prepared to take on the sole responsibility of making decisions that are likely to affect you and your family? If the answer is year, then you don’t need an adviser.
But if the answer is no, financial advice is more than worth it.
If you’re not working with a financial adviser will you really do it yourself? It takes time, skill and effort. Finding time to research financial questions, evaluate your options and execute a decision takes time. Many investors are invested in just one target-date fund. Even if you could make the time, maybe there are other things you'd rather do.
Time is money and there’s a cost to delaying good financial decisions – and there a cost to prolonging poor ones like keeping too much in cash or putting off doing an estate plan.
Often what makes a financial adviser worth it is their ability to keep you on track and proactively identify financial risks and opportunities for you. We value experience in nearly every aspect if life, don’t discount it when it comes to managing your life savings. Our financial lives are complex and interrelated. Puling one lever can have unintended consequences in another aspect of your life.
Getting organised and building a strategy going forward is critical but then there is implementing the strategy, staying on track and revising plans when things change. Without ongoing support, recommendations sit idle and changes to your persona life keep coming. New legislation can require strategy changes, and things like losses could become a tax opportunity.
You need the tools, experience and objectivity a financial adviser brings to help you make the best decision the first time
Getting your finances in order, ensuring your family is cared for and getting a grasp on your path ahead can be empowering and liberating. Reducing or removing this source of anxiety can make working with a financial adviser worth it.