What we do

FINANCIAL PLANNING

Elements of a Financial Plan

Broadly speaking, you can break the strategies relating to Financial Planning into three distinct categories.

  1. Wealth Creation - Firstly, you will need to make money or save money.
  2. Wealth Protection - Once you start accumulating wealth, you should consider safeguarding it's value in the event that something unexpected happens that could negatively impact your ongoing or existing wealth accumulation strategy.  This is generally done using Personal Insurance policies like Life Cover, Total and Permanent Disability, Income Protection and/or Trauma.
  3. Wealth Succession - Lastly you are going to want to consider or plan how your hard earned money will ultimately be transferred to your next of kin should you die or become incapacitated.

There is certainly a lot to think about when setting these strategies up, so to assist you we have explained in a bit more details the elements contained within each stage.

Wealth creation

When discussing strategies relating to Wealth Creation, there are many variables that come to play.  Affordability and cash flow issues, as well as the appropriate use of debt facilities are a starting point.

You should consider investment options like Bank Deposits and Term Facilities, Managed Funds, Exchange Traded Funds, Direct Shares, Property, Small Business investment etc.  Be mindful that many of these options may also have some sort of taxation considerations and will likely require the input of a qualified Accountant.

For longer term investments, you may want to consider retirement savings plans like Industry Superannuation, Retail Superannuation, Corporate Superannuation, Defined Benefit structures and/or Self-Managed Superannuation Funds.

Our highly qualified and specialist Financial Planners will work hand in hand with your Accountant, Mortgage Broker, Lawyer and/or other Financial Service Professional where appropriate to help you achieve your desired result.

Wealth protection

Now that you have a rough plan, we should stress test it to see what could potentially go wrong.  Examples of these events could be anything from a job change, unexpected redundancy, new baby, family death, physical or mental inability to work etc.

To cater for these financial events, you will need need to decide if you would like to:

  1. Either Self Insure (i.e. I’ve looked at the potential downside of these events, and believe I can cover any shortfalls by redeeming assets or from cash). Alternatively;
  2. You can pass on the responsibility by taking on a Personal Insurance policy (i.e. I’ve looked at the potential downside to these events, and don’t think I can cover them myself and will need help).

Examples of these policies include, Life/Death Insurance, Total and Permanent Disability, Income Protection, Trauma/Critical Illness, Key-person Business Insurance, Buy-Sell Insurance or Business Expense Insurance

In the case of Personal Insurance policies, some of these insurances can be funded using your Superannuation monies and/or the premiums may even be tax deductible.  There are pros and cons relating to each option.  Your Drakkar Group adviser will be able to let you know the most appropriate option for you.

Wealth Succession

It’s a dark topic at the best of times, but it important to decide what will happen to your assets when you die. Outlining your succession instructions is actually more than just doing a Will.

Although a Will covers assets held in your Estate, what about the assets held in your Superannuation Fund? Or proceeds from your Personal Insurance Policies? What happens if you suffer an event in which you do not die, but do become incapacitated and can no longer make Financial or Medical decisions concerning your own wellbeing?

Through the help of a strategic relationship with a highly qualified and experienced Estate Planning Solicitor, Drakkar Group is able to help you put together a holistic Wealth Succession Plan which can help to minimise any tax paid by your heirs, and hopefully avoid any family squabbles.

Find out how you can give instructions to your family about your legal and medical preferences should you fall ill or lose the capacity to make those decisions yourself.

Everybody should have documented succession plan!

WEALTH COACHING SERVICES

Wealth Coaching services can range from a ‘project based’ or ‘limited scope’ piece of financial advice, designed to deal with particular situation or event (i.e. entering/exiting the workforce, receiving an inheritance, processing an insurance claim, help with Age Care or Centrelink etc.) to an ongoing advice relationship whereby a client wants to learn more about managing their own affairs.

For whatever reason, clients are able to enlist the help of one of our qualified Financial Advisers to help with a specific purpose and/or to upskill their own knowledge in a certain area. Some examples can be seen below.

For more information please contact one of our Drakkar Group advisers today!

  • Budgeting and Cashflow
  • Wealth Creation and Accumulation Strategies
  • Gearing & Debt Management Advice
  • Advice on Property Acquisition and Disposal
  • Direct Share Investment
  • Superannuation Advice
  • Self-Managed Super Funds (SMSF) – Sleep easy knowing that your Drakkar Group Adviser holds specialist qualifications from the SMSF Association.
  • Transition to Retirement Strategies
  • Retirement Planning Advice
  • Government Entitlements and Centrelink Benefits
  • Wealth Protection & Insurance Advice
  • Small Business Ownership
  • Wealth Transfer & Estate Planning

Mark Maddern (331 457) and Drakkar Group Pty Ltd (125 250 5) are both Authorised Representatives of Synchron Australian Financial Services Licensee No. 243313 for the purposes of Financial Planning Advice only.

SELF MANAGED SUPERANNUATION FUNDS (SMSF)

Self Managed Superannuation Funds (SMSFs) are the fastest growing sector in the superannuation industry, with approximately 570,535 funds in Australia as at 30 June 2016. The sector currently accounts for around 29% of all superannuation savings and is still growing!

A key driver of individuals switching to SMSFs is the wish to gain control over investments. An SMSF can allow members to invest in asset classes that they have perhaps had more exposure to than standard managed investments (i.e. Direct Property, Bonds, Direct Shares etc).

Source: APRA Quarterly Superannuation Report, March 2017

In a lot of cases an SMSF can also be more cost effective than retail funds, as the fee structure is generally a fixed cost and not dependant on the amount of funds invested.

Nevertheless, gaining control over your investments is a trade-off – you take on obligations to operate and manage your SMSF within the confines of the law. This does require a greater level of commitment, time and a hands-on approach.

Having said that, for the right individual, taking control of your retirement goals with an SMSF is extremely rewarding.

Given the complexities that come with owning a SMSF it is advisable to seek assistance from SMSF professionals, such as SMSF Specialist Advisors (SSAs).

To see if you an SMSF is appropriate for you, contact a Drakkar Group SMSF Specialist Adviser today.

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PERSONAL INSURANCE

Helping you protect your family and lifestyle.

Most of us have insurance for our car and our home, and health insurance to cover time in hospital and visits to the dentist or physio.  Many, however, don't insure themselves against the risk of losing their life, or their income, either temporarily or even worse, permanently.  Could you absorb the costs associated with a serious health incident?

The reality

Not being able to work could be financially devastating.  And not everyone has the money put aside to rely on.  If you permanently lost your income due to an accident, injury or loss of life, how long could your family survive?

Luckily there is a range of personal insurance products available that can protect you and your family against the financial impacts of unforeseen health events.

  • Life insurance
  • Total and Permanent Disability (TPD) insurance
  • Income Protection
  • Critical illness insurance

What is Life Insurance?

Protecting your loved ones when you are no longer here.

Life insurance is all about giving the people you most care about financial security if you're no longer alive to support them.  If you die, it pays a lump sum benefit to your loved ones.

Having the right level of cover helps ensure that your family could survive financially without your income.  The benefit payment can be used to meet a number of expenses.

Life insurance could help your family cover:

  • Mortgage payments
  • Your children's future
  • Retirement protection for your spouse
  • Funeral Costs

What is Total and Permanent Disability (TPD) insurance?

Protection for yourself when things go wrong

TPD insurance provides a lump sum payment if you become disabled and you're forced to permanently stop working.

This lump sum benefit provides funding to cover the day-to-day, and also provides options for you and your family to enjoy the future in the way you'd like to:

TPD insurance could help you cover:

  • Mortgage payments
  • Ongoing care
  • The cost of ongoing treatment
  • Home modifications

What is Income Protection?

Survival payment if you are unable to work temporarily

Income protection pays up to 70% of your income if you can't work due to illness or injury.  This money can help you and your family manage your living expenses while you recover.

A monthly benefit could help you stay on top of debts, pay for medical bills and generally give you the means to maintain a reasonable standard of living if you're not able to earn an income.

Income protection could help you cover:

  • Day-to-day expenses
  • School fees
  • Additional care
  • Rehabilitation

What is Critical Illness or Trauma insurance?

If you were to suffer a critical illness event

If you become seriously ill, critical illness insurance frees you up from financial worry by paying a tax-free lump sum if you develop any of a range of specified illnesses.

Often a serious health incident can bring with it extra costs - on top of the day-to-day - and critical illness insurance can help cover these costs.

Critical illness insurance could help you cover:

  • Debt repayment
  • Medical expenses and treatment costs
  • Lifestyle modifications
  • Cash reserve

Where do I get more information?

Drakkar Group are Life Insurance Brokers with years of experience helping clients to determine appropriate levels of Personal Insurance, policy types and conditions, and the most effective payment methods.  We can explain more about the different types of personal insurance, and help you tailor the right cover to your needs.

In fact, we won’t just help you secure an appropriate policy, but we will also be right there to your hand when you lodge the claim and follow it through to payment!

SPECIALIST BUSINESS INSURANCES

Key Person Insurance

If you are a small business owner, you may have one or more key individuals within your operation whose knowledge, contribution, work, sales capabilities etc is crucial to the ongoing financial success of your business. If so, then you may have a Key Person Risk.

Key Personal Insurance (Keyman Insurance), is a corporate owned insurance policy that can provide a lump sum payment to help the employer offset the cost of hiring/training a replacement or losses incurred as a result of them no longer being able to perform their job duties resulting from a major illness, injury or death.

Key Individuals could be a Business Principal, Partner, Shareholder, Effective Sales Person, Executive, Scientist etc.

Business Succession Insurances

The sudden death or incapacity of a business owner, can be catastrophic for an otherwise successful business. While owners are alive, negotiations can take place about buying each other out at key life events such as retirement etc. Unfortunately, many business owners for granted that this has been catered for in their respective partners arrangements.

If one partner dies or becomes incapacity suddenly, then the remaining partner may find themselves in negotiations with deceased owner’s legal representative or spouse, who may be more concerned about the needs of the estate over the needs of the business.

The unexpected funding of this transaction can also be problematic.

Buy-Sell Insurances can provide quick payment in exchange for the in-question business interest, saving all parties much financial angst.

For more information, please contact a Drakkar Group adviser today.

Business Expense Insurance

Business Expense Insurance is like an Income Protection benefit for your business.

While your personal Income Protection benefit may pay you to protect your personal obligations, a Business Expenses policy can pay the business a benefit to ensure the portion of your business expenses for which you are responsible can be met should you be temporarily unable to work due to injury or illness.

Business Expenses insurance generally reimburses you for certain regular business expenses such as rent, utilities, lease costs and depreciation. It is important to note not all expenses will be covered.

This can help cover your fixed business costs and keep your business afloat while you are recuperating.

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ELEMENTS OF A COMPREHENSIVE FINANCIAL PLAN

  • Strategic Financial Advice
  • Cashflow
  • Improving Financial Behaviours
  • Investment Advice
  • Superannuation Advice (inc. SMSF)
  • Insurance (Life/TPD, Income Protection, Trauma)
  • Debt management
  • Wealth Succession and Estate Planning
  • Structures, Entities and Ownership