Comment of the Week goes to....

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“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” – Winston Churchill.

There were a few courageous readers this week, but the comment of the week goes to “@SMSFCoach”, who noticed something amiss in the Asia-Pacific Wealth Report by Capgemini and RBC Wealth Management.

According to the report, Australian HNWIs are more focused on wealth growth rather than wealth preservation and have risky asset allocations, such as 40.6% of assets in real estate.

“@SMSFCoach” replied to the article:

“Yet again we see the focus on the investment advice rather than the structure and strategy. Australian's need to focus on using the wealth system to get the money in the right entities and right tax environments first and the product should be the last thing considered.

This is why advice is underrated by those who do not use an adviser currently. They only focus on returns not net after tax figures or having the money in the right place/name for long term planning.

Hence you get the complaint from people with 3 investment properties worth over $1m but only earning 4% that they should be entitled to Centrelink assistance because their income is low. If they had looked at their portfolio as long term strategy they could have structured their investments to access better income and more benefits not just upfront tax deductions.”

The comment sat well with another reader, Rosemary Johnston, and also echoed calls from Centric Wealth, for advisers to review clients’ investment structures.

WP forum is the place for positive industry interaction and welcomes your professional and informed opinion.

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