Here at Kennedy King, our focus is simple: to provide a superior level of service that enables our clients to get on with the business of running their business. In practice, this means creating accounting and business solutions that are tailored against their individual needs and their specific goals for today and for the future. Our extensive list of services is a reflection of the diversity and excellence of our team who, collectively, bring a level of technical know-how and expertise that help our clients achieve their visions. One such service? Financial advising.
It’s important to note that not just anyone can call themselves a Financial Advisor, and rightly so. A Financial Advisor isn’t someone with ‘a knack for numbers’, or who has ‘a good eye for what’s happening’ with the stock market.
In Australia, a Financial Advisor is required through legislation to hold an Australian Financial Services (AFS) Licence. This authorises licensees to:
- Provide financial product advice
- Deal in a financial product
- Make a market for a financial product
- Operate a registered scheme
- Provide a custodial or depository service; or
- Provide traditional trustee company services.
The AFS Licence is issued by ASIC and falls under their regulation umbrella, and at the risk of repeating ourselves, an AFS licence is required to conduct a financial services business.
Kennedy King has held our limited AFS Licence since 2016 under which our Self-Managed Superannuation Fund and other products operate against.
There are significant benefits to working with a Financial Advisor. Just as Kennedy King provides tailored, personalised support and advice, so to Financial Advisors. They take into account their client’s individual circumstances, personal values and lifestyle priorities in the short term as well as across every life stage. This depth of knowledge means that clients are better placed in terms of clarity of spending against targeted solutions, which can alleviate financial and emotional pressure.
That life stage element is one that is critically important when you consider that while our needs and focus change over time, robust planning with one eye ahead allows for a greater sense of preparedness as people consider their financial options (and challenges) as they move through seasons. For example, the needs of a single person in their early thirties working in the professionals services sector wanting to become a home owner are markedly different to someone in their late sixties with a family home as well as a diverse investment portfolio. This diverse investment folio doesn’t happen by accident or by default but through intentional planning. This is where a Financial Advisor really brings their value to the fore – they regularly review and update financial goals at every stage of life to evaluate and adjust to current and future situations.
A collaborative approach yields a more cohesive outcome for Financial Advisor clients. Financial Advisors work collaboratively with appointed accountants to allow people to focus on what’s important without being bogged down by paperwork, and Financial Advisors have strong networks that enable them to connect their clients with qualified service providers to meet their needs, including:
- Legal services – family law, property law and conveyancing
- Banking – commercial and residential lending
- Retirement planning
- Self-Managed Super Funds
- Succession planning
The costs or fees associated with working with a Financial Advisor varies. It depends on the breadth and depth of the advice required. To paint a quick picture, one of the reasons people in their early forties with school aged children might reach out for support from Financial Advisors is because they are painfully aware that their financial literacy has limitations – they might have a conceptual awareness that they’re earning ‘good’ money but aren’t confident that its working as hard for them and for their future as it should. The Financial Advisor support in this circumstance might include anything from estate planning for the future, consolidating super from multiple funds into one, ensuring enough income for their kids’ school fees, checking their debt clearance plan and setting up an investment property that actually makes financial sense. This is obviously just one example of the type of clients Financial Advisors work with, however it should be noted that it’s a service that’s not just for people with high net wealth on a good wicket. And yes, Financial Advisors can help people make more money through investment advice, this is just one area. They can also offer support with budgeting, insurance plans, tax strategies and succession planning. It all comes down to a personalised approach and selecting the right Financial Advisor for you.
Financial Advisors play an important role in supporting people to make decisions that have a long term impact on their lives. Of course, the information provided in this piece is general in nature and is designed to give an overview of a service rather than detailed advice. If you’d like to know more about how we here at Kennedy King could be of support to you, please get in touch. We’d love to meet with you.