Opportunity knocks amidst Budget changes
Constant tinkering with the superannuation system and other legislation limbo may be causing headaches for advisers and clients but one planner sees this as an opportunity for the profession.
Eureka Whittaker Macnaught chief executive, Greg Cook, observed that clients in their late 40s and early 50s were suddenly aware that their ability to ramp up super contributions as they headed towards retirement was disappearing, and sought this as an opportunity to re-engage with their adviser.
"To think about it in a commercial fashion, change results in people moving to seek advice. We're winning new clients specifically because of that," Cook said.
"Some of the people my business has been seeing over the last couple of weeks have been people who previously haven't had an adviser, or they may have got some advice five or 10 years ago and now realise that the rules have changed and they need to get some fresh advice."
The Financial Wisdom authorised representative's chief executive also said that while former Federal Treasurer, Peter Costello, brought about generous changes to the reasonable benefit limits, he knew it would be trimmed at some stage and advised his clients accordingly.
"I suppose looking back I know personally I gave advice to people about spouses tending towards equalising their account even when at the time there was no specific reason to do that," Cook said.
"Instead of the man perhaps having the $2.5 million in their super account and the spouse, the wife perhaps only having $500,000, if each spouse can have $1.5 million then they both are under the cap. I guess that has proved to be valuable advice now."
Cook stressed that any changes in investment markets or regulation presented an opportunity for advisers to re-engage with clients who may have drifted away.
AUTHOR
Malavika Santhebennur
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
