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Speaker 1: Welcome back to another episode of Supermama's Fireplay. Today, we're

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Speaker 1: diving into a critical topic that I feel is more

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Speaker 1: relevant than ever in our digital age. That is the

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Speaker 1: importance of getting professional financial advice from a licensed and

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Speaker 1: experienced financial planner, rather than just relying on the unregulated

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Speaker 1: advice circulating on social media. I am thrilled to be

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Speaker 1: joined by Richard Nichols from Blue Lantern, a seasoned financial

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Speaker 1: planner like myself with years of experience helping everyday people

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Speaker 1: nabrogate the complexities of personal finance. Richard is here today,

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Speaker 1: right now, to join me and shed a light on

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Speaker 1: why getting personalized financial advice is invaluable and the legal

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Speaker 1: protection that it offers to you, as well as the

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Speaker 1: stupidity and dangers of following financial advice from online influences.

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Speaker 1: This is a conversation that I get a little bit

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Speaker 1: fired up. If you haven't heard me previously speak about this,

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Speaker 1: so you are could have want to miss anything right

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Speaker 1: now if you're serious about securing your financial future with smart,

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Speaker 1: intelligent and wise investment strategies, this is sugar Mama's Fireplay,

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Speaker 1: all right, Richard, thank you so much for joining me

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Speaker 1: this morning. For sure, I get a little bit angry

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Speaker 1: when I see really limited I guess surface level, opinionated

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Speaker 1: and ill informed advice spy from social media influences. And

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Speaker 1: don't get me wrong, I think financial influences some of

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Speaker 1: them are brilliant and very inspiring and motivating, but there

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Speaker 1: is a lot of just downright dangerous stupid advice. So

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Speaker 1: polase if I get a little bit fired up. But

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Speaker 1: it's just something I just think is just fraught with danger.

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Speaker 1: I'm hoping you agree with me also of this, But

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Speaker 1: of course if you don't, by all means like speak up.

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Speaker 1: But can you first start by explaining toever you ae

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Speaker 1: right now? The key difference is between getting financial advice

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Speaker 1: from a licensed financial planne like yourself and myself, versus

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Speaker 1: following something that you see on social media.

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Speaker 2: I suppose the main difference would be when you see

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Speaker 2: financial advice from a planner, that planner will carry it

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Speaker 2: out a detailed investigation to your current financial situation, indeed,

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Speaker 2: ascertain your financial goals and objectives, ascertain your attitude to risk,

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Speaker 2: and from that develop a strategy that should achieve your

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Speaker 2: long term goals.

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Speaker 1: So in the fact, fine, it's about looking at where

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Speaker 1: you are right now, and what is it that you want,

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Speaker 1: you know, starting your point A, and you want to

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Speaker 1: get to point B. And a financial planner's job is

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Speaker 1: to work out the map, you know, the instructions, the

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Speaker 1: directions in their sufficient and effective way possible that sits

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Speaker 1: your needs. I think a lot of people don't quite

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Speaker 1: understand how important that fact find is because if you've,

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Speaker 1: if anyone's ever seen a fact find, it's sometimes it's

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Speaker 1: like thirty pages.

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Speaker 2: Yeah, I mean it's detail document.

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Speaker 1: Exactly, and it asks really important questions that no financial

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Speaker 1: influencer can ever go there with, even like important things.

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Speaker 1: It's oneos are even comfort uncomfortable answer, like what's.

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Speaker 2: Your health like yeah, indeed you're smoking status? Do you

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Speaker 2: have any health issues? Do you have a will? Do

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Speaker 2: you have a power of attorney?

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Speaker 1: Have you got yeah? Do you have a family member

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Speaker 1: with health concerns that may impact your financial decisions? People?

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Speaker 1: It's not to you ask those questions. People go oh wow,

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Speaker 1: I hadn't atually thought about that and how that impacts

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Speaker 1: and actually how it is a very important pace to

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Speaker 1: the puzzle in helping work out the best financial plan

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Speaker 1: for you. And even you know, you know going on

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Speaker 1: to from the fact find we do a risk profile,

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Speaker 1: So can you explain to the listeners what a risk

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Speaker 1: profile is.

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Speaker 2: Our risk profile is basically a series of questions, typically

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Speaker 2: multiple choice answers, and the way that you answer that

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Speaker 2: will determine or have some determination as to your attitude

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Speaker 2: for risk. Because you've got two things when it comes

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Speaker 2: to risk. You have how much risk typically you're comfortable

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Speaker 2: in taking, but also how much risk you should take

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Speaker 2: given your stage in life and how much time you

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Speaker 2: correct you know, for example, if you're a younger person

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Speaker 2: that comes across as relatively risk adverse, or because you've

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Speaker 2: got twenty thirty years up your sleeve before maybe you

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Speaker 2: need to access super for example, then the conversation should

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Speaker 2: be around IK educating that person around OK, maybe you

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Speaker 2: should be taking a little bit more risk because you've

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Speaker 2: got time frame up your sleeve to smooth out volatility.

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Speaker 2: Whereas on the flip side of that, you might have

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Speaker 2: an older client who has a very high tolerance to

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Speaker 2: risk because they've come through that financial journey and understand

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Speaker 2: investments a bit more. But they're knocking on the door

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Speaker 2: of sixty maybe they shouldn't be taking the amount of

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Speaker 2: risk that the comfortable in taking, and the conversation will

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Speaker 2: then be about trying to de risk that person.

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Speaker 1: And this is what worries me is you see financial

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Speaker 1: influences and yes they have the general advice warning up there,

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Speaker 1: and that's fine, but they'll be talking about, oh, I've

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Speaker 1: invested in this ETF and they'll name that ETF and yes,

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Speaker 1: you know they're stating facts. That's fine, but someone interprets

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Speaker 1: that as advice and they think, oh, well, if that

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Speaker 1: financial influencer is investing in that, I'll go and put

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Speaker 1: my superannuation money in that. But they don't realize that

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Speaker 1: that particular investment product is for someone who's got a

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Speaker 1: time frame of say ten years, fifteen years or even longer,

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Speaker 1: and they are someone who's literally a few years away

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Speaker 1: from approaching retirement and may need to have a slightly

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Speaker 1: larger allocation conservative assets. This is where the danger lies.

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Speaker 1: But you don't know that, and they don't know that.

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Speaker 1: And this is the problem with a lot of funcial

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Speaker 1: influences that they don't know what they don't know, and

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Speaker 1: they don't know the impact that they can have on someone,

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Speaker 1: you know, by someone innotantly interpreting that as al, well.

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Speaker 2: That's right, and I think you bring up PCFs, I

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Speaker 2: think that's probably on the lower end of the risk.

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Speaker 2: Sometimes you see influencers talking about because you see it,

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Speaker 2: and certainly in recent years a lot of them talking

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Speaker 2: about crypto NFTs and meme and the certain mean coins,

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Speaker 2: and people start understand how risky those are, yes.

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Speaker 1: And they innocently jump in it. And often for a

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Speaker 1: lot of people it's actually been their first investment is

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Speaker 1: a crypto because they've heard these rags to riches tails

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Speaker 1: and they've jumped headphond with no idea that they may

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Speaker 1: as well just go to the casino, taking the same

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Speaker 1: level of risk.

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Speaker 2: Yeah. Indeed, can we talk.

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Speaker 1: The value of Financial Planet in a strategy because I

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Speaker 1: think a lot of people think, oh, financial plan is

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Speaker 1: going to tell me where to invest. But to me,

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Speaker 1: that is just probably twenty percent of the of the service.

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Speaker 1: And I would say that so much comes from designing

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Speaker 1: the roadmap or the directions or the instructions. You know,

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Speaker 1: that's the last piece of the puzzles picking the investments.

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Speaker 1: It's the actual strategies involved. Can you explain on how

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Speaker 1: important this is because I feel like everyone hears me

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Speaker 1: like a broken record about someone else to be able

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Speaker 1: to explain this well.

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Speaker 2: The role of the planner is to find, I suppose,

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Speaker 2: show where they are currently, understand with them where they

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Speaker 2: want to be, and then work out which Because it's

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Speaker 2: been there'll be many different routes they could potentially take,

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Speaker 2: and then between you and the client, you would then

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Speaker 2: go through those various different options and discard the ones

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Speaker 2: that you that don't work or they're not comfortable with,

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Speaker 2: and that might be you know, you're not comfortable with

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Speaker 2: shares over property or vice versa. So that process of

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Speaker 2: eliminating those various options is where we sort of then

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Speaker 2: end up with the strategy.

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Speaker 1: And the other thing is with a financial planner is

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Speaker 1: they'll often stop you from doing something disastrous. And that's

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Speaker 1: another I guess I guess forgotten about value of financial planners.

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Speaker 1: Financial influence is not going to stop you from making

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Speaker 1: a disaster, no decision, but a financial planner will say, hey,

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Speaker 1: I need to let you know this is not in

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Speaker 1: your best interest to you this this is fraught with danger,

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Speaker 1: and I think we need to sit down and just

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Speaker 1: view this before you, you know, decide yes or no.

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Speaker 1: And I that may save someone, you know, one hundred

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Speaker 1: thousand dollars in tax they may say, may say someone

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Speaker 1: five years of investments and savings. You know, there is

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Speaker 1: so much underlying value in that. Can we also talk

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Speaker 1: about the financial strategy obviously, you know, you sit down,

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Speaker 1: you go through this fact find and we go through

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Speaker 1: really detailed questions as to you know, who you are,

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Speaker 1: what your value system is, what are your dreams, what

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Speaker 1: are your goals, and what are those deadlines for those

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Speaker 1: you know? And also you know, we even go you know,

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Speaker 1: when you're a financial planning it's not just your client,

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Speaker 1: it's actually the circle around your client. It's your clients, partners,

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Speaker 1: your clients, immediate family, it's you know, all the people

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Speaker 1: that could potentially be impacted from your client's decisions. When

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Speaker 1: we do that back find and it then takes you

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Speaker 1: onto the risk profile. Those are the most important documents,

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Speaker 1: but they're not stagnant up no.

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Speaker 2: Indeed, it also cash flow. Ye, working out what their

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Speaker 2: budget is like is paramount as well, because it's all

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Speaker 2: very well that good's saying they want to do invest

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Speaker 2: into this or save for that, But until you understand

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Speaker 2: if they have the capacity for that in the first place,

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Speaker 2: is a bit of a mute point, and if they

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Speaker 2: don't have the capacity, what areas can they potentially cut

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Speaker 2: back on? And it can be quite an eye opening

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Speaker 2: experience for people to work through their budget. But what

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Speaker 2: areas they can cut back on to give them the

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Speaker 2: capacity they need to either say for the children's education

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Speaker 2: or putting the money down for the deposit on the home,

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Speaker 2: or whatever the goal or aspiration may be.

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Speaker 1: And that's where a functionalals sit down and go all right, okay,

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Speaker 1: there's a lot of goals here. Let's sit down and

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Speaker 1: work out what it actually por what is pressing? What

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Speaker 1: are you happy to park for a while and come back?

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Speaker 1: And that right further down the track.

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Speaker 2: Because they can conflict. You know, you often see clients

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Speaker 2: that want to want to invest maybe in a share,

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Speaker 2: port failure or property, but they also want to do renovations.

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Speaker 1: Really common, isn't it?

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Speaker 2: Massively? And what you don't want to do is for

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Speaker 2: that client to go ahead with an investment strategy that

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Speaker 2: then ankle taps their renovations. You know, you've got to

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Speaker 2: understand which which of those priorities is most important, and

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Speaker 2: for most people the renovation typically is the more important.

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Speaker 2: Yeah goal, So that if that's the case, then a

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Speaker 2: lot of the time they may need to park their

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Speaker 2: investment aspirations to make sure they can get that renovation done, because,

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Speaker 2: like I said, the worst thing would be for the

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Speaker 2: client to go head first into something else. Then come

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Speaker 2: time to do the renovation and they gore that investments.

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Speaker 2: Now stop me from doing that renovation.

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Speaker 1: But the beautiful financial plane there is is not about

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Speaker 1: stopping necessarily. It's like, it's about okay, well, let's focus

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Speaker 1: on this understanding it. Whilst you may be saving up

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Speaker 1: the client, maybe saving up for that renovation, you can

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Speaker 1: still tap into other things that you can have bubbling

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Speaker 1: away in the background, such as you know, okay, well,

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Speaker 1: whilst you're you know, making sure you've got the DA

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Speaker 1: has gone in, you're saving up, you're getting quotes from builders.

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Speaker 1: Let's also make sure that your superannuation is addressed properly

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Speaker 1: and make sure that that money is invested and that

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Speaker 1: you're doing everything you can to maximize that. And then

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Speaker 1: also let's make sure that you've you know, protected yourself

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Speaker 1: from a personal insurance point of view, so that you know,

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Speaker 1: no matter what, that mortgage is always protected, it's paid off.

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Speaker 1: You know, you got an alternative source of income to

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Speaker 1: rely on if something happens to you from a medical

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Speaker 1: point of view and you can't work. All these pieces

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Speaker 1: of the puzzle come into financial planning. It's not just

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Speaker 1: picking actual underlying investments. And I siden made the comment

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Speaker 1: about it not being stagnant. Can we talk about the

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Speaker 1: ongoing service that comes with financial planning, because you don't

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Speaker 1: just come in and do a financial plan and then

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Speaker 1: kick someone out of your office and go off. You

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Speaker 1: go implement and follow that and that's you know, the

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Speaker 1: next thirty years. It's never like that. You know, relationships

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Speaker 1: break down, might have more family members, you know, work,

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Speaker 1: situation changes different.

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Speaker 2: Well, I see any cost and nicest things will change exactly. Yeah,

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Speaker 2: and your plan needs to be able to morph to that.

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Speaker 2: And we do that via reviews, regular reviews with your

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Speaker 2: client sitting down making sure nothing has changed. If it

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Speaker 2: has changed, what's changed, and then if those changes impact

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Speaker 2: your strategy, how do we then pivot to to make

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Speaker 2: sure that you can continue on your lifestyle goals.

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Speaker 1: And also there's also the pivoting because of changing legislation

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Speaker 1: and you know, government opportunities and schemes that open up.

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Speaker 2: You know, well, that's right. You know, you think about

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Speaker 2: how much super super legislation has changed in the last

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Speaker 2: ten years, let alone huge your constant, the constant every

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Speaker 2: single government seems to fiddle with it in some way.

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Speaker 2: And whether or not it's how much you can have

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Speaker 2: in pension phase now or then you cap on large balances,

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Speaker 2: it's constantly changing.

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Speaker 1: Yeah, and this is why a financial fluencer cannot go there.

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Speaker 1: I mean, number one, they're not licensed to be talking

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Speaker 1: about sort of strategies like the superannuation and tax and

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Speaker 1: so forth. A financial planner will actually go through all

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Speaker 1: those opportunities and actually, you know, call you up and say, hey,

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Speaker 1: is this opportunity, this is something we should probably sit

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Speaker 1: down and have a chat for you because you can

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Speaker 1: potentially get an extra twenty thousand dollars in super or

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Speaker 1: actually we can actually look at your home loan and

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Speaker 1: renegotiate a better deal with you, and with that extra

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Speaker 1: money we can put towards the share portfolio or whatever

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Speaker 1: it may be. This is why having that someone holding

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Speaker 1: your hand on an ongoing basis and making sure that

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Speaker 1: you're you know, doing the lapse. You know, and I

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Speaker 1: say to clients, you know, when I was running my

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Speaker 1: financial planning practice. I was like, I'm like a swimming coach.

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Speaker 1: You know, you're telling me you want to win a

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Speaker 1: gold medal. I can't swim those laps for you. But

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Speaker 1: what I will do is I will meet you at

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Speaker 1: the swimming pool at five am and I will walk

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Speaker 1: up and down the line of the swimming pool whilst

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Speaker 1: you do this the lapse and you jump in the water,

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Speaker 1: and I will show you how to perfect your stroke,

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Speaker 1: you know, so that you can move as fast as

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Speaker 1: you possibly can through the water without burning too much

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Speaker 1: energy and you're able to get to the end of

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Speaker 1: the race in a sustainable way where you're not burnt

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Speaker 1: out at the end. And you know, that's the way

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Speaker 1: that I look at financial planning. And this is why

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Speaker 1: I just get, you know, throw my arms up in

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Speaker 1: the air when I see dangerous advice that's just very

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Speaker 1: limited service level as only really for a fraction time,

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Speaker 1: takes no strategic element that a financial planning planner can

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Speaker 1: really offer. In the piece of the puzzle, can you

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Speaker 1: share with me, you know some of the legal protections

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Speaker 1: now that come from a financial plan because once that

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Speaker 1: financial planner, as you said, has the statement or the

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Speaker 1: fact find the risk profile can explain how the statement

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Speaker 1: advice comes together and the legal protection I'm seeing a

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Speaker 1: license financial Once.

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Speaker 2: You've been given a statement advice or financial plan, you

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Speaker 2: are you do have quite a significant legal protection, especially

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Speaker 2: if you know if that once you get given advice,

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Speaker 2: it is on the understanding it's appropriate for you. Now

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Speaker 2: if it's not appropriate for you, then you do have recourse.

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Speaker 1: And this is I think so wance.

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Speaker 2: You don't get with any with.

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Speaker 1: An influencer exactly. I mean, so say I, you know,

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Speaker 1: you gave me some bad advice. I can actually come

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Speaker 1: back and say, hey, this is actually was not great advice,

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Speaker 1: like yeah, we've got to do something about it, and

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Speaker 1: you have to.

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Speaker 2: Have to deal with that or you have you can

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Speaker 2: then go to the complaints authority and take it that way,

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Speaker 2: and you have.

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Speaker 1: No there's no recourse with a financial monence or at all.

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Speaker 1: You know, it's just your bad luck. You're silly enough

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Speaker 1: for following it at lorus. And of course you know

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Speaker 1: for someone who's created content that makes it look like

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Speaker 1: advice and says its advice, that that's a little bit

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Speaker 1: different because that's you know, breaking the laws and something.

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Speaker 1: As it takes very very seriously.

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Speaker 2: Well, yeah, that's the main benefit of seeing it advisors.

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Speaker 2: The advice you receive will be appropriate for you, and

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Speaker 2: if it's not, you have recourse.

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Speaker 1: Okay, as we wrap up today's episode, can you share

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Speaker 1: with me some experiences where people have maybe come to

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Speaker 1: you because they've seen something on social media and you've

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Speaker 1: actually said, no, that's not a good idea.

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Speaker 2: I suppose that one of I do see a few

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Speaker 2: people that have come to me wanting to invest into crypto,

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Speaker 2: especially and I'm not sure whether or not it's from

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Speaker 2: social media or not, but where where they where they

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Speaker 2: come from. But when you've got you know, people in

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Speaker 2: their fifties talking to me about crypto, I do get

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Speaker 2: a little bit worried because you know that they're hearing

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Speaker 2: it from grandkids or the other other avenues that they've

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Speaker 2: they've they've heard this from. And then obviously because you

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Speaker 2: then in the media, you see you know the bitcoin billionaires,

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Speaker 2: you know, the people that bought bitcoin twenty years ago

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Speaker 2: or something, and now it's worth millions and everyone's trying

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Speaker 2: to jump on it, and that does cause concerns, especially

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Speaker 2: for those you know, like I said, those older clients

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Speaker 2: where they should really be steering very very clear of

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Speaker 2: anything like that. Absolutely, if they don't understand it, you

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Speaker 2: shouldn't invest into it.

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Speaker 1: Yeah, one of the golden rules of investing. Yeah, And

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Speaker 1: if you don't understand doesn't mean you just don't do it.

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Speaker 1: It means you keep asking questions. You get to the

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Speaker 1: end and go all right, I understand it, I do

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Speaker 1: like and want to do it, or Ashley, I understand it,

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Speaker 1: and I definitely don't want to do indeed. And you

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Speaker 1: know the value of that is is huge because it

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Speaker 1: would save you a lot of time.

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Speaker 2: And I think that's one of the main reasons people

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Speaker 2: come for advice is they know there's all these things

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Speaker 2: they could be doing. They're just a little unsure about

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Speaker 2: how to do it.

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Speaker 1: And you know what we if my if I injure

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Speaker 1: my knee, I go and see it Domino and I

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Speaker 1: see a specialist. I don't jump on Google and follow

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Speaker 1: the need doctors online like I just instagram surgery.

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Speaker 2: You don't want should instagram reel I how to fix you.

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Speaker 1: In anything exactly like And this is our money, this

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Speaker 1: is part of our well being. We need to delegate

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Speaker 1: to the experts. That's exactly what they're there for all right,

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Speaker 1: as we wrap up today's episode. You know, and a

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Speaker 1: lot of people know this. I don't take on new

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Speaker 1: clients and i haven't been for quite some time because

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Speaker 1: I'm really focusing on helping educate people around money. I

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Speaker 1: know yourself. You talk to people all the time, and

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Speaker 1: I've had a few people come and see you and

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Speaker 1: have a chat. How do you work with clients? Do

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Speaker 1: you have an initial appointment? Is it done over the phone?

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Speaker 1: Do you deal with people across the country or overseas

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Speaker 1: as well? And you know, what are the costs involved

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Speaker 1: just to get people started, because a lot of people

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Speaker 1: are ready, they just completely overwhelmed and they're starting to realize, Okay,

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Speaker 1: you're right. Planning your word force is can be helpful,

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Speaker 1: inspiring and motivating, but there's not a I am there.

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Speaker 1: What's your process?

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Speaker 2: Ah? Well, the first process is the first step of

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Speaker 2: the process is to have that initial consultation that can

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Speaker 2: be done face to face or via zoom. My preference

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Speaker 2: is face to face, but obviously if you are inter

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Speaker 2: state or overseas. I don't see a lot of overseas,

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Speaker 2: but if you're certainly interstate, then that's done via zoom,

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Speaker 2: and that initial appointment is more of a getting to

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Speaker 2: know you session. I can't give you any financial advice

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Speaker 2: because all advice must be in writing. It's more of

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Speaker 2: an opportunity for me to explain a bit more about

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Speaker 2: who we are, what we do, how we do things,

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Speaker 2: the processes we go through, how we make our money, fees, etc.

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Speaker 2: Because you do need to know all of that before

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Speaker 2: anyone can consider engaging us. I'm likewise, it's an opportunity

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Speaker 2: for the client to potential client, to explain more about them,

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Speaker 2: who they are, what they're working towards, what they're comfortable with,

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Speaker 2: most importantly, what they're not comfortable with, so I can

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Speaker 2: be confident that what we do first and foremost is

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Speaker 2: going to be of some benefit to them. There's no

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Speaker 2: cost or obligation to that first meeting. It's just like

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Speaker 2: I said, a bit of a getting to know you session.

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Speaker 2: From there there there is a bit of a financial

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Speaker 2: planning process which we do run through, and yeah, we

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Speaker 2: explain how our renumeration model works.

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Speaker 1: And Becazole comes to you and say, look, I just

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Speaker 1: want advice on my superannuation where it should be invested.

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Speaker 2: You know what.

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Speaker 1: I should be doing salary sacrificing. Can I come to

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Speaker 1: you and just say I want a limited advice. Is

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Speaker 1: that there?

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Speaker 2: We can do that certainly. And if it's and again,

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Speaker 2: if it's around salary sacrificing, I might be even be

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Speaker 2: able to do that under a general advice model.

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Speaker 1: Oh wow, that's really helpful tonight, you know.

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Speaker 2: Without having to go down a fee model at the

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Speaker 2: end of the day, for me to charge fees or

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Speaker 2: for us to charge fees, there has to be clear benefit.

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Speaker 2: The last thing I want, you know, to do is

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Speaker 2: take someone on board as a client and then go

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Speaker 2: well done, keep doing what you're doing, because no one's

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Speaker 2: going to really feel they've got much benefit from that process.

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Speaker 2: So for first and foremost, yeah, we need to fully

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Speaker 2: make sure that there's clear benefit and bringing you on board.

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Speaker 1: As a client. Thank you so much for being so

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Speaker 1: open and honest and transparent allowing me to just to

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Speaker 1: outload or vent to you about my bitches and moones

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Speaker 1: with you know, irresponsible you know advice online. So thank

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Speaker 1: you for sharing that space with three heat Pleasure for

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Speaker 1: anyone who's interested in having a chat with you and

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Speaker 1: taking you up on that offer for an appointment, what's

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Speaker 1: the best placed or best method or communication half to

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Speaker 1: get you.

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Speaker 2: Email is always best because then it's there. My email

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Speaker 2: address is Richard at Blue Lantern dot com dot A.

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Speaker 2: That's that's generally the best avenue to get in touch

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Speaker 2: with me.

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Speaker 1: Okay, all right, look everyone, thank you so much for

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Speaker 1: listening to today's episode. I really now hope that we've

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Speaker 1: taken off those rose tinted glasses when it comes to

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Speaker 1: what you see online, and I'm not just bitching about

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Speaker 1: financial and there's any type of content you see online.

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Speaker 1: And this for this reason, every single episode of mine

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Speaker 1: starts with the general advice warning. It's there for your protection,

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Speaker 1: so that you understand at no stage am I ever

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Speaker 1: telling you or recommending or advising you to go and

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Speaker 1: do something. I'm simply giving you information so that you

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Speaker 1: can gather your own thoughts and feelings and opinions based

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Speaker 1: on the facts and how that relates to your financial situation.

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Speaker 1: The most importantly relates to your financial goals and dreams.

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Speaker 1: So for everyone who's listening, please feel free obviously to

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Speaker 1: share this episode. But then you have found me and friends,

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Speaker 1: make sure you are following sugarmummers fireplaces you can listen

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Speaker 1: to next week's episode, which is always published as you know,

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Speaker 1: five am every single Monday morning, rain, hail or shine.

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Speaker 1: And once again, thank you so much to Richard Nichols

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Speaker 1: from Blue Lantern. I'll see you next Monday morning. Chaff Now,