An accountant by profession and with help from friends in associated professions, I looked after my own and my family’s financial affairs for many years. Things were simple in the 70’s and 80’s but gradually became complicated with the plethora of changes in taxation legislation and the many ‘get rich quick’ and ‘investment’ schemes being touted by private interests. I admit to being somewhat sceptical of actuarial forecasts for future wealth from savings, insurance, superannuation and the like.
Other than the family residence, our savings were limited to investments in bank deposits and a residential block. Like many others, we viewed the old age pension as an income supplement to our investments. Superannuation was something that had been negotiated through various industrial awards or was paid into employee superannuation funds by Governments, Federal, State and Local. Some of Australia’s biggest companies had also established superannuation funds for their employees.
Read More
Luckily for us, the Federal government introduced a compulsory "Superannuation Guarantee" system as part of a major reform package addressing Australia's retirement income policies in 1992. In addition, the Government proposed a "three pillars" approach to retirement income:
• A safety net consisting of a means-tested Government age pension system
• Private savings generated through compulsory contributions to superannuation
• Voluntary savings through superannuation and other investments
Our retirement nest egg became our existing savings supplemented by the employer’s compulsory contributions to our newly established superannuation fund.
When we sold our residential block, profits were not as expected; in fact we incurred a loss. Proceeds were placed on deposit. Contributions to our superannuation fund continued from various employers but without any additional financial input from ourselves.
The fund was generating good profits until the global financial crisis in 2007/2008; this resulted in a serious reduction in retirement funds. As I was planning for retirement in 2013, the loss made for a very stressful couple of years and a realisation that I would likely have to continue working past 2013.
A good friend suggested that my wife and I visit a financial advisor. We
procrastinated for some months before deciding to seek assistance. We then
sought recommendations for a local advisor in Bunbury and finally decided to
make an appointment with Pennywise Investments and were introduced to Jeff
Glossop.
Well, what a difference a two hour meeting made to our finances and our lives.
Such a shame that we waited until April 2010. Jeff gave details of his
background and philosophies as a financial advisor. We were then asked our
expectations for our futures, our intentions pre and post retirement age and
finally for details of current savings and investment. He explained the strategies
available to us based on existing available funds and made recommendation on
further investments, including salary sacrificing, etc. The meeting was followed
two weeks later by a comprehensive written proposal and associated
information.
Jeff gave us confidence to change and to adopt the recommendations and
strategies outlined in his Statement of Advice. In June 2010, Jeff officially
became our financial advisor. This was a leap of faith for my wife and I as we
had continually read of losses incurred by seniors who had invested in various
schemes promoted throughout Australia by financial planners and advisors.
Jeff took the time to really get to know us. This gave us every confidence that
not just our financial goals were well understood but also our comfort levels.
His integrity and knowledge are invaluable and we now feel a sense of security
that we did not have before transferring our financial assets to his control. His
strategies were so successful that I actually retired in December 2012, with my
wife also taking the decision to retire in July 2013.
Jeff has a proactive approach to his work, regularly provides updates and has
always been available to answer any questions or to explain options within our
portfolio. We appreciate the guidance that Jeff has provided in helping us make
sound financial decisions based on our investment objectives as well as our
personal needs.