Highlights
- Fiducian Group has introduced financial advice for women to maximise financial independence for women.
- Fiducian has chalked out various steps that help women to manage their money and create wealth.
- Fiducian’s financial planners can help across three areas, including Strategic Advice, Tactical Advice and the Implementation of a financial plan.
Fiducian Group Limited (ASX:FID) has introduced financial advice for women with a view to maximising financial independence exclusively for them.
For a long, women have been known to juggle multiple roles. Even today, a woman can be married, a single professional, a company director or a homemaker, but she still has various roles to play in everyday life.
Fiducian believes that since women share a different financial experience as compared to men, women need to be offered different financial advice from what men receive.
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Fiducian highlights various critical aspects of creating wealth and managing money that women can use for better financial planning.
Set your goals
Begin with setting goals for your financial planning. This may include setting a practicable deadline for every goal and determining the amount of time and money needed. Further, prioritise goals as per your needs and focus on the most important goals.
Fiducian further suggests regularly reviewing goals with time to check if they still hold the same level of importance and make changes if need be.
Pay yourself first
Fiducian says that irrespective of whatever an individual’s goals are, one must follow a regular savings plan to meet those goals. Moreover, a good rule of thumb could be to set aside 10% of a person’s net salary as savings.
You can make a budget or even try reverse budgeting, i.e, plan for your savings first and then allocate for your expenses.
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Invest to grow your savings faster
Investing your savings is an important step to reach your goals faster. Holding savings in the bank account would deliver little return each year, but prudent investing can deliver much more.
There are numerous types of assets that one can choose to invest in, depending on their financial needs and objectives as well as risk tolerance ability.
Harness the power of compounding
A good understanding of compound interest- a fundamental element of wealth creation and applying the same can make a huge difference to an individual’s financial independence and lifestyle over the long term.
Protect what you have and plan for the unexpected
Fiducian believes that financial protection is important for women as they are a vital element of the Australian workforce, as employees as well as business owners. Moreover, there is no guarantee that a person will be able to act in multiple roles in their lifetime.
Therefore, it is important to protect what you have and plan for the unexpected. For this purpose, a comprehensive financial protection plan can help, which can include the following:
- Life insurance
- Total & Permanent Disablement Insurance (TPD)
- Income Protection
- Trauma/Critical Illness
- Business expenses (for business owners)
Wealth Diversification
The biggest asset for a person can be their home or business but putting all your money into a single asset may turn out to be problematic for your retirement. The early diversification of wealth can help to expand an individual’s choices when it comes to retirement.
Fiducian believes that an optimal portfolio comprising a well-managed diversified fund like the Fiducian Balanced Fund at the core will have a mix of all four asset classes.
Investing in tax-effective ways
There could be several ways to invest in tax-effective tools, including the following:
- Investing in a super
- Investing in the name of the lower-income earner for a couple
- Investing via a family trust and/or in investments that offer franking credit
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Make the most of your super & pre-retirement planning
Each quarter, the Association of Superannuation Funds (ASFA) updates and benchmarks the annual budget required by Australians to finance a comfortable or modest standard of living in post-work years. This bakes in inflation and indicates the average budget for those aged around 65.
Besides this, there is a range of factors that determine the amount of money needed to retire at the age of your choice. Fiducian has highlighted various strategies to make the most of your super.
Data Source: FID
Using debt wisely
Fiducian believes that debt can add a substantial value when used responsibly. Moreover, debt can be good or bad depending on how one uses it and its overall effect on the financial position of an individual over the long term.
Fiducian states a few practices that can help use debt wisely.
- Borrowing money only to buy assets or investments that appreciate in value and deliver an income can help in claiming interest on borrowings as a tax deduction.
- Borrowing the amount that can be paid/serviced comfortably.
- Paying down non-deductible debt soon.
- Use a credit card only when you are confident to pay it off in full at each month’s end.
- Seeking advice before borrowing to understand the risks and devise a plan to minimise the risks.
Distribution of assets as per your wishes when the time comes
Fiducian states that one may need professional advice from a financial planner and solicitor for estate planning as it is a complicated area. The least one can do is to have a Will drafted by a solicitor, failing which, your assets will be distributed as per Intestacy laws upon the event of your death.
Such distribution may have unexpected consequences, especially if one is in a second marriage or in a de-facto relationship and have children from an earlier relationship.
How can Fiducian help?
Fiducian operates with a mission “To help people build wealth and feel more confident about their financial future”. Fiducian offers expert, personalised advice and helps private individuals secure a future of financial prosperity and business owners achieve commercial success.
Fiducian’s financial planners can assist across three main areas, including the following:
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Fiducian can simplify the investment process and help by doing most of the paperwork. Moreover, Fiducian can also utilise its collective wisdom and experience to guide one through life’s present as well as future financial challenges.