Newcastle Financial Archives - Newcastle Financial Planners & Financial Advisors https://financialplanner-newcastle.com.au/tag/newcastle-financial/ Financial Services and Advisory Firm Newcastle Tue, 25 Oct 2011 10:09:55 +0000 en-AU hourly 1 https://wordpress.org/?v=6.9.4 https://financialplanner-newcastle.com.au/wp-content/uploads/2019/11/favicon.png Newcastle Financial Archives - Newcastle Financial Planners & Financial Advisors https://financialplanner-newcastle.com.au/tag/newcastle-financial/ 32 32 Risk Insurance https://financialplanner-newcastle.com.au/risk-insurance-2/ Tue, 25 Oct 2011 10:09:55 +0000 http://financialplanner-newcastle.com.au/?p=850 Do You Have Adequate Risk Insurance? Many people go through enough pain and grief when dealing with their illness or injury, let alone the stress that comes along with not having an income to support their family. That’s why it is important to ensure you have the appropriate risk insurance or risk cover in place.   Risk Insurance A Claimant's Story Geoff and his adviser David’s real names have not been used to protect their privacy. Geoff thought the world was at his feet as he prepared himself for retirement, until he was diagnosed with a life threatening illness. The following is an extract from a letter Geoff’s insurance provider received from him… Six weeks ago I was diagnosed with bowel cancer and secondary liver cancer. My initial diagnosis was three to six months and I was facing the possibility of a major operation to remove the cancer in my bowel. By the afternoon, after my second visit to the specialist, my life expectancy had been reduced to between six weeks and three months. I phoned my insurance adviser David, who I had known for 19 years and who had originally assisted in putting my insurance cover in place. Within three […]

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Many people go through enough pain and grief when dealing with their illness or injury, let alone the stress that comes along with not having an income to support their family. That’s why it is important to ensure you have the appropriate risk insurance or risk cover in place.

 

Risk Insurance A Claimant's Story

Geoff and his adviser David’s real names have not been used to protect their privacy.

Geoff thought the world was at his feet as he prepared himself for retirement, until he was diagnosed with a life threatening illness.

The following is an extract from a letter Geoff’s insurance provider received from him…

Six weeks ago I was diagnosed with bowel cancer and secondary liver cancer.

My initial diagnosis was three to six months and I was facing the possibility of a major operation to remove the cancer in my bowel. By the afternoon, after my second visit to the specialist, my life expectancy had been reduced to between six weeks and three months.

I phoned my insurance adviser David, who I had known for 19 years and who had originally assisted in putting my insurance cover in place. Within three days of submitting a claim, I received my first payment of $653,535 and then another payment which brought the total payment to over $1.2 million.

Although I have not met the people who have been involved, David kept me informed of everyone’s efforts to ensure that my claim was processed in the most efficient manner. I am sure this has a lot to do with the excellent relationship that he has with my insurer and the fact that the right advice was given in our situation.

I would like to express our thanks for relieving me of the financial burden and worry that I would have faced if I did not have this cover.

The payments from his insurance enabled Geoff to obtain an expensive medical treatment from Japan, only available to a few patients around the world. After taking this medication for over six months, Geoff was recently informed that his once-inoperable cancer is now operable.

This surgery will hopefully extend Geoff’s life expectancy significantly, enabling him to spend more time with his family.

Speak with your financial planner today to ensure you have adequate risk cover in place.

Source: AIA Australia Limited, June 2011

 



 

Our Newcastle Financial advisors are happy to help discuss your risk cover needs and risk insurance options.

Risk Insurance

 

 

 

 

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]]> When Will You Review Your Finances? https://financialplanner-newcastle.com.au/when-will-you-review-your-finances/ Wed, 12 Jan 2011 19:50:26 +0000 http://financialplanner-newcastle.com.au/?p=320 Our Financial Advisers in Newcastle say regular reviews of your financial plan are important to optimising your financial security. Dealing with changes The financial world is always changing. Political, economic, legislative and social factors will continue to change long into the future. Ongoing reviews with a professional financial planner who understands and monitors these changes will assist in supervising and tailoring your financial schedule.   Case study Charlotte and Craig were married for two years before they consulted a professional financial planner.  With a baby on the way, the couple needed advice on budgeting and Craig’s investments. Although it was suggested they be involved in an ongoing review service, Charlotte and Craig declined. They believed the advice offered would set them up for life.   Five years later their family had grown and Charlotte had permanently left the workforce. They also inherited money and gained equity in their home. In short, their circumstances had changed drastically and their plan no longer reflected this.   Had Charlotte and Craig been involved in the review process, their financial planner would have been able to offer them a report on Craig’s investments, a tracking of his portfolio as well as any further advice […]

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]]> Our Financial Advisers in Newcastle say regular reviews of your financial plan are important to optimising your financial security.

Dealing with changes

The financial world is always changing. Political, economic, legislative and social factors will continue to change long into the future. Ongoing reviews with a professional financial planner who understands and
monitors these changes will assist in supervising and tailoring your financial schedule.
 
Case study
Charlotte and Craig were married for two years before they consulted a professional financial planner.  With a baby on the way, the couple needed advice on budgeting and Craig’s investments. Although it was suggested they be involved in an ongoing review service, Charlotte and Craig declined. They believed the advice offered would set them up for life.
 
Five years later their family had grown and Charlotte had permanently left the workforce. They also inherited money and gained equity in their home. In short, their circumstances had changed drastically and their plan no longer reflected this.
 
Had Charlotte and Craig been involved in the review process, their financial planner would have been able to offer them a report on Craig’s investments, a tracking of his portfolio as well as any further advice they had needed.
 
‘Nobody plans to fail but many fail to plan’. An ongoing review service would likely include annual meetings to review your long term financial position. A financial adviser should listen to your needs and goals and tailor their service to help meet them. You can enjoy life today, knowing that your future is in expert hands.
 
Source: Lonsdale Financial Group – Financially Speaking Edition 28. 2010
 

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]]> Newcastle Financial Investment Tips https://financialplanner-newcastle.com.au/investment-tips/ Mon, 08 Nov 2010 22:19:52 +0000 http://financialplanner-newcastle.com.au/?p=268 SIGNS THAT A STOCK IS ABOUT TO SLIDE When considering shares to purchase, a company that generates below average earnings, has poor cashflow or a weak balance sheet may be one for you to look at especially carefully before purchasing. Whilst there are other characteristics of weakness to look for, these offer clues that unpleasant issues may be about to surface. One things that companies must always keep to the fore is to communicate, communicate, communicate, even if over and above the regulatory requirements – especially in troubled times. 1.     Earnings Guidance – it is not uncommon for companies to lower their earnings guidance previously issued. Reasons may be related to the economy generally, or to a specific company related issue. However, if the company does not meet the revised earnings rate the effect can be one of negativity in the marketplace and well as with employees and shareholders and a downward spiral quickens. Stock analysts may then scale back their recommendations and reduce earnings estimations further – all of which may have a subsequent further negative on the share price.   2.    Executives Selling – neither is it uncommon for executives of publicly listed companies to sell shares they hold in their company. There […]

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]]> SIGNS THAT A STOCK IS ABOUT TO SLIDE

When considering shares to purchase, a company that generates below average earnings, has poor cashflow or a weak balance sheet may be one for you to look at especially carefully before purchasing. Whilst there are other characteristics of weakness to look for, these offer clues that unpleasant issues may be about to surface.

One things that companies must always keep to the fore is to communicate, communicate, communicate, even if over and above the regulatory requirements – especially in troubled times.
1.     Earnings Guidance – it is not uncommon for companies to lower their earnings guidance previously issued. Reasons may be related to the economy generally, or to a specific company related issue. However, if the company does not meet the revised earnings rate the effect can be one of negativity in the marketplace and well as with employees and shareholders and a downward spiral quickens. Stock analysts may then scale back their recommendations and reduce earnings estimations further – all of which may have a subsequent further negative on the share price.
 
2.    Executives Selling – neither is it uncommon for executives of publicly listed companies to sell shares they hold in their company. There are often very legitimate reasons for executives to download their share holding – they may be purchasing a new home or need money for some family reason, or to just earn some profits or diversify their holdings (such as the recent downselling of Telstra shares by the Future Fund).
 
There are, however, times when some selling activity can and should raise eyebrows, such as when more than one executive is looking to off load parts of their holdings, or when an individual sells a large proportion of their holdings, or when executives sell at or neat the 52 week low. Whilst executives might comment that they have other need for funds, the action does tend to raise alarms in the investment community- both in terms of management practices within the company as well as the personal expertise of the executive.
 
3.    Stopping Quarterly or Annual Financial Forecasts – Whilst it is not always easy to provide the investment community with quarterly or annual financial forecasts as corporations are large entities and the business environment can change rapidly over time, with revenue changes both up and down. However, companies should still endeavour to provide some operational guidance to ensure confidence remains in the business and investment community.
A signal that there may be trouble brewing is when a company abruptly stops issuing forecasts. Silence in this case is not golden as it can raise concerns as to what is happening, Not having some future earnings guidance can give the impression of actually trying to hide information, so investors and analysts become wary, when in fact there may or may not be a reasonable explanation.
 
4.    Suspending Dividend – For income-seeking investors, companies paying dividends are always tempting, and in fact necessary. That a company is paying a dividend (especially fully franked) is often viewed as a sign that the company is doing well. So if a dividend-paying company suddenly suspends dividends it may be a signal that the company is experiencing some financial difficulty. Also, the company may see a significant sell off of its shares as those income-seeking investors off load their shares. Additionally a dividend suspension may herald serious job cuts, production reduction, asset sales and plant closures. A reduction in the dividend, or the franking amount are reasons to investigate company operations and ask appropriate questions.
 
5.    Termination of Buy Back – If a company has been buying back shares and suddenly stops, it may be a signal that the company is short of cash, or the shares are not as good an investment at the time, and that investors are eager to offload without any brokerage fees. None of these scenarios would be especially attractive to new investors.
 
6.    Lack of Diversification and Innovation – Successful companies need to achieve growth over time and it is important for a company to consider new products and to encourage innovation, especially in a fast-moving business environment where new products may take a long time to introduce. Comapanies that do not embrace innovation run the risk of becoming irrelevant, especially if new technology or an improved and superior product hits the marketplace. Whilst there are exceptions to the rule be wary of companies not considering building on their business through diversification with new or improved offerings.
 
7.    Industry Trends – Companies operating in the same industry may experience similar trends. Investors should be on the lookout for signals of how a company may be doing compared with others in the same industry, if one is declining others may also, or if one is declining and others are doing well. Look at verious industry trends as this could also signal economic trends on a larger scale.
 
8.    The Bottom Line – In addition to the traditional valuations and measures there are several indicators that may signal trouble to come for a company. It is necessary for an investor to do research to avoid making incorrect decisions leading to losses in income or capital.
 
By using a financial advisor for investment, who does the research for you and then makes recommendations specifically for your needs, you are limiting your risk factors.

READ FULL DISCLAIMER Let Andrew Frith of The Self-Managed Super Specialists assist you in meeting your financial goals.  Visit our other websites for Business accountants

 

Our Newcastle Financial Advisors are located on King Street, Newcastle, NSW 2300, Australia

Call  T: 02 4926 2300

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