Your financial position should be reviewed periodically to ensure any recommendations and strategies developed under the statement of advice (SOA) remain appropriate. This should normally occur annually, but could be on a six-month basis, quarterly or as required, depending on the agreed level of service.
Ongoing service obligations
Here are some examples of the ongoing client services an adviser may offer:
Your personal situation may have changed
Experiences such as starting a new job, buying a home, getting married, retiring, having children, or losing a loved one can affect what you spend and your capacity to save.
Your lifestyle and financial goals may have changed
Your goals may change over time and with particular events in your life. Thus, it is important to review your situation and ensure your plan synchronises with any new or revised goals.
Don't underestimate the effects of changes in legislation
Legislative changes could drastically alter your financial situation. They can be triggered by a new government, the federal budget or the passing of legislation throughout the year. These changes can impact things like superannuation contributions limits, tax rates, or Centrelink rules and benefits. Your financial adviser can help you adapt through a review of your situation.
You could be paying more tax than necessary
Having your financial situation reviewed on an annual basis, means your financial adviser can assist you in identifying any strategies to help you minimise your tax costs or boost your after-tax returns.
Your insurance needs may have changed
Changes to your personal, work or family situation may impact your insurance needs.
Your debts may not be managed effectively
Reviewing your debts with your financial adviser and resetting any benchmarks means you are effectively taking control.
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