Latest News

The perks of staying invested

 

In times of severe market disruption 'doing nothing' often feels unacceptable. Surely such market movements means you have to respond.

 

         

Around this time last year, as with every year, forecasts of how investment markets would perform in 2020, were in abundance. Many prognosticated subdued global growth, with most estimating that 2020 would deliver positive returns, with geopolitical risk the main barrier to global growth.

In Australia, we anticipated muted economic growth at 2 percent and Australian equities were expected to deliver single digit returns with some market volatility expected.

None could have foreseen a global health pandemic that would culminate in the most pronounced economic shock in nearly ten decades.

And, undeterred by the earlier understandably incorrect predictions, many went on to forecast continued market declines as the pandemic unravelled. But as the year ended, the investment market scorecard for 2020 told a quite different story. The ASX closed out 2020 at just 1.4 percent lower than the start of 2020, after capping its best December quarter in history, the S&P 500 delivered an average return of 9 percent and the MSCI All Country World index of global shares was up almost 13 percent higher.

It is obviously no one's fault that most forecasts failed to predict market movements during a global pandemic and history has shown that it is almost impossible to reliably predict events and their impact on markets. But as investors we crave certainty and as humans we try to see order or patterns in what is happening.

In times of severe market disruption 'doing nothing' often feels unacceptable. Surely such market movements means you have to respond.

However, it should be acknowledged that investors effectively made an active decision by doing nothing in response to the ongoing market volatility. Perhaps it was a conscious decision in consultation with your financial adviser, or simply a matter of averting your eyes and focussing more on the challenges of working remotely, home schooling the kids or keeping a small business afloat.

But the last 12 months showed investors that 'doing nothing' and staying the course was the right thing to do by their portfolios. The caveat to that is the assumption that your portfolio has the appropriate asset allocation for your personal risk tolerance and is sufficiently well diversified to both cushion and capture market movements.

A concentrated portfolio in a specific sector would not have enjoyed the same outcomes as the broad market indexes.

Looking to 2021, perhaps we can use the lessons learnt from 2020 to help us navigate the year ahead.

Firstly, practising social distancing with your investment portfolio is a healthy undertaking that we should all implement. By all means, check your portfolio a few times a year and rebalance it if your goals or risk profile have changed. Otherwise, tune out the short-term noise and focus on your long-term investment goals. As vaccine rollouts give us hope that the tide is turning, uncertainty remains about the long-term economic impacts and the only real certainty is that other – as yet unforeseen – events will roil markets.

Secondly, stay cost conscious. The coronavirus pandemic forced changes to household budgets, whether through a necessary tightening of the belt or through limited spending opportunities as a result of lockdowns. But as life returns to COVID normal, perhaps you will consider permanently keeping some items off the shopping list. Even a small reduction has a significant impact over the long term. The same goes for fees incurred on your investments. The more you pay in fees, the less you get to keep. And if you dipped into your superannuation account in 2020, consider directing some household savings to replenish the super portfolio.

Lastly, be prepared for the next bout of volatility. COVID-19 laid bare the truth for many. If the bear market of March 2020 and the subsequent impact to your portfolio felt more like a heart attack than some short term pain, perhaps now is a good time to re-evaluate your investment portfolio and establish if your asset allocation and investment strategy are aligned to your risk profile, investment objectives and investment time frame.

Ultimately, 2020 rewarded disciplined investors for ignoring the noise and staying invested in the financial markets amid the turbulence. And while past performance is no guarantee of future results, conventional wisdom would say that keeping an eye on the long-term and setting realistic expectations for returns will be the best course of action for any investment portfolio in 2021.

An iteration of this article was first published in The Australian Financial Review on 18 January 2021.

 

 

19 Jan, 2021
By Robin Bowerman
Head of Corporate Affairs, Vanguard Australia
vanguard.com.au

 

Latest Articles

The real value of advice

  The right words of advice - whether it be from friends or family, business mentor, sports coach - can...

Read More

Taking a deeper dive into indexation of the transfer balance cap

  With the recent indexation of the general transfer balance cap causing discussion around its...

Read More

ASIC sounds warning around high-yield bond scams

  The corporate regulator has warned of a rise in scammers targeting Australian investors by pretending to...

Read More

How to pass the diversification test

  Diversification, spreading your money across a range of different assets rather than putting it all into...

Read More

Rollout of Director ID Numbers (DIN) is ahead of schedule

  Director identification numbers may be introduced sooner than expected for SMSFs with corporate...

Read More

The perks of staying invested

  In times of severe market disruption 'doing nothing' often feels unacceptable. Surely such...

Read More

Retirees proceeding with downsizing plans as confidence rises

  Downsizer contributions were the top query received by the BT technical services team in the December...

Read More

Early access boosted interest in advice

  Public interest in financial advice rose significantly in 2020, with consumers focusing their online...

Read More

Returning expats reminded on tax snares with pensions, investments

  With thousands of Australian expats still hoping to return home following COVID-19, a mid-tier firm has...

Read More

Retirees need new super investment approach

  The needs of retiree clients may not be properly serviced by traditional portfolio investment...

Read More

Retirement the ‘number one trigger’ for financial advice

  Approaching retirement still remains the top reason for seeking advice from a financial planner, with...

Read More

Approaching the dawn

  COVID-19 has completely, and mercilessly, dictated the direction of economies and financial markets...

Read More

Retirement Planning

Retiring on your own terms is not always easy to achieve, however it is evident that those who plan for retirement are more likely to do so. Results also show that obtaining professional help during the pre-retirement years further improves the probability of attaining your retirement objectives.

The earlier you start implementing a plan the better the outcomes.

During one’s working life there is always an income to make ends meet when raising children, paying off a mortgage, etc.

Retirement planning is about the lifestyle you will have after you stop work and receiving employment income.  Planning focuses on issues such as how much superannuation is enough, taking a super pension, claiming the Age Pension, making superannuation contributions while receiving a pension from a super fund, estate planning and looking after your family.

Planning properly is becoming even more important now we are expected to live longer.  This greater need means that professional help has never been more important.

At Wybenga Financial we will provide the time and expertise needed to help you implement the best pre-retirement plan possible.  Contact us today to discuss how we can work together on: 02 9300 3000 or info@wybengagroup.com.au

Building Wealth

Investing your hard earned savings can be a complex task.  There are many issues such as levels of risk, market timing, asset classes, and your own goals, objectives and preferences that need to be considered. It can often seem a daunting task. At Wybenga Financial we have the expertise to assist you in taking control of your finances and making sure you are generating the wealth you need both now and in the future.

The first step is to create a plan. At Wybenga Financial we take great care in getting to know our clients and their future goals and objectives. We combine our knowledge of your personal goals together with an analysis of your current situation, to create a detailed, personalised plan that will help you meet your objectives. This plan will become your road map which outlines how we are going to meet your goals, whilst aligning all investment decisions to your specific risk tolerance.

After we have created your personal plan, we move to implementation. This is where we action the immediate changes set out in your plan, and put in place reminders for anything that is to occur in the future. As your professional advisers, we can action many steps on your behalf making the implementation of changes as painless for our clients as possible. We aim to make the process smooth and seamless, providing a holistic service that can be executed with ease.

The final and most important phase of the relationship with Wybenga Financial is the ongoing management and monitoring of your wealth. This ensures you are sticking to your plan and that your portfolio is aligned to your needs and attitude toward risk. An ongoing relationship ensures that we know when your circumstances change and that these can be recognised and reflected in changes to your investment approach.

While we are monitoring your portfolio from the perspective of your personal goals and situation, we also take into account the wider economic landscape and changes to legislation. We continually review and analyse our preferred investments in a structured and objective way. The benefit to our clients is that we are unemotional. This can be significantly beneficial over the long term.

At Wybenga Financial we can provide the time and expertise that will help you invest intelligently and prudently.  Contact us today to discuss how we can work together:  02 9300 3000 or info@wybengagroup.com.au

Personal Insurance

Life insurance isn’t just a cost, though it often feels like it.  You buy peace-of-mind that should a serious issue effect you then the consequences won’t unduly affect your family.  Insurance provides you with the ability to manage the financial and emotional impact of some of the more drastic events, whether personally or in your small business.

Insurance can’t replace a loved one but it can help reduce the financial burden by providing the capital to ensure your family has choices.

Many Australians are underinsured and the consequences can be very serious for families should there be a death or serious injury. A yes to any of the following questions means you may have a need for insurance coverage:

  1. Do you have a mortgage?
  2. Do you have school fees?
  3. Do you have any personal loans?
  4. Do you have any credit card debt?
  5. Do you have dependents?
  6. Would your financial position be affected if you were to suffer from an illness or injury?
  7. Do you want to have enough capital to look after your dependents if you were unable to care for them for an extended period of time or perhaps indefinitely?

We understand that it can be difficult determining the type and level of cover you might need, let alone choosing an insurer. We can assist by helping you determine your needs and recommend an insurer that is right for you.

At Wybenga Financial we know how to protect your wealth and will recommend solutions that best suit your needs.  Contact us today to discuss how we can work together:  02 9300 3000 or info@wybengagroup.com.au

Superannuation

Superannuation is mandatory but taking an early and active interest in your retirement planning is critical to ensuring your benefits are maximised by the time you retire.  Many will have a superannuation scheme through employment but increasing numbers are starting their own Self-Managed Super Fund (SMSF).

For many, simply relying on employer contributions may not be enough to provide the lifestyle you desire at retirement. We can assist in building strategies to ensure your retirement goals are met and your required lifestyle is maintained throughout retirement.

It is always best to start saving and planning for your retirement as early as you can. 

At Wybenga Financial we know our job is to help you meet your retirement needs and we have the skills and experience to do this for you.  Contact us today to discuss how we can work together:  02 9300 3000 or info@wybengagroup.com.au

Self Managed Super Funds

Self-Managed Superannuation Funds (SMSFs) offer a good strategy option for many individuals, families and small business owners to build tax effective wealth and to protect assets over time. SMSFs are becoming popular for those who are ready to take control of their own super investments as they give you ultimate control and flexibility to manage your retirement benefits.

It must be noted though, that you will have increased responsibilities as a trustee of the fund. As a SMSF Trustee you need to keep up to date with all required regulations and keep up with the fast paced financial markets.

Wybenga Financial can work with you to understand your personal financial situation and decide whether a SMSF structure is appropriate for you. We will also make sure your assets are invested in the most effective way to maximise your retirement benefits.

Should you wish to consider establishing a SMSF then we can help with all aspects of the process from establishment to managing your compliance obligations.

Wybenga Financial would welcome the opportunity to discuss how we can help maximise your opportunities to grow your wealth through a Self Managed Superannuation Fund (SMSF).  Contact us today to discuss how we can work together:  02 9300 3000 or info@wybengagroup.com.au

Estate Planning

Your estate is made up of everything you own. This includes your home, property, furniture, car, personal possessions, business, investments, superannuation and bank accounts.

Having an estate plan is extremely important.  Having a will is just the first step in your estate plan. It is critical to consider what outcomes you would like for your estate and to ensure a plan is in place to achieve those outcomes, both including and beyond the terms of your will.

Wybenga Financial would welcome the opportunity to discuss how we can help ensure your estate is organised to ensure your plans are implemented as you wish.  Contact us today to discuss how we can work together:  02 9300 3000 or info@wybengagroup.com.au

Finance

Loans and loan management are central to overall financial management.  Obtaining the best loans for your needs is crucial and Wybenga Financial can help you with solutions that meet your short and long term needs.

At Wybenga Financial we work with experienced mortgage brokers that can assist you in obtaining the best loan for your needs and objectives. Whilst this is an external service, we work closely with the brokers to ensure the process is as easy and smooth as possible.

Property

We have partnerships with many respected property agents and research firms. This enables us to source suitable properties for individuals, couples and families looking to make an investment into property.

At Wybenga Financial we will provide the time and expertise needed to help you implement the best property investment plan possible.  Contact us today to discuss how we can work together:   02 9300 3000 or info@wybengagroup.com.au

Strategic Planning

Strategic planning is determining how an investor is going to meet their goals and objectives. It is about helping clients define their goals, gathering information and analysing data to make a plan, then implementing the plan and monitoring the results. It is also monitoring and updating goals and objectives as clients move through different phases of life.

At Wybenga Financial, this is the most critical service we provide. For more information please visit our Building Wealth through Strategic Planning page or contact us to discuss how we can work together:   02 9300 3000 or info@wybengagroup.com.au

Financial Videos

 

Secure File Transfer

Secure File Transfer is a facility that allows the safe and secure exchange of confidential files or documents between you and us.

Email is very convenient in our business world, there is no doubting that. However email messages and attachments can be intercepted by third parties, putting your privacy and identity at risk if used to send confidential files or documents. Secure File Transfer eliminates this risk.

Login to Secure File Transfer, or contact us if you require a username and password.

General Calculators

Please enjoy the links to these free tools supplied by MoneySmart – a great resource for general financial information. Please get in touch if you would like to discuss any questions that you may have as a result of using these calculators.

Tess Uncle

B.Sc, M.Com, CA, DipFP

Tess has over 15-years experience in Chartered Accounting Firms and in this time has had a broad range of experience in superannuation, taxation, business services, and financial strategy.

Over the last two-years, Tess has turned her attention to Financial Planning, earning a Diploma of Financial Planning in 2015 and leading the newly established financial division of the Wybenga Group as a director of Wybenga Financial.

Tess’s mission is to bring the ethics and integrity of her Chartered Accounting background to the area of wealth management.

As a woman in a male dominated field, Tess is active in promoting gender equality in the industry through various programs and mentoring opportunities.

Using her depth of knowledge and experience in tax and accounting Tess is able to demonstrate a level of competence that is unique in the Financial Planning sector.

  • 2001 – Commenced employment with Wybenga & Partners and part-time accountancy studies
  • 2004 – Graduated Masters of Commerce from the University of New South Wales
  • 2005 – Admitted as an Associate Member of the Institute of Chartered Accountants Australia
  • 2007 – Promoted to Manager at Wybenga & Partners
  • 2012 – Appointed as Associate Director
  • 2015 – Awarded a Diploma of Financial Planning
  • 2016 – Appointed as Partner of Wybenga Group and Director of Wybenga Financial

Adam Roberts

B.Bus, B.Sc, CA, DipFP

Adam has over 13-years experience in Chartered Accounting Firms and in this time has had a broad range of experience in superannuation, taxation, business services, and financial strategy.

Over the last two-years, Adam has turned his attention to Financial Planning, earning a Diploma of Financial Planning in 2015 and leading the newly established financial division of the Wybenga Group as a director of Wybenga Financial.

Adam’s mission is to bring the ethics and integrity of his Chartered Accounting background to the area of wealth management.

Combining traditional accounting and financial services has been a welcome move for Adam, allowing him to operate and advise in the financial sector that has been a long time personal passion.

Using his depth of knowledge and experience in tax and accounting Adam is able to demonstrate a level of competence that is unique in the Financial Planning sector.

  • 2005 – Graduated Bachelor of Science from the University of Western Sydney
  • 2005 – Commenced employment with Wybenga & Partners and part-time accountancy studies
  • 2007 – Graduated Bachelor of Business from the University of Western Sydney
  • 2010 – Admitted as an Associate Member of the Institute of Chartered Accountants Australia
  • 2010 – Promoted to Manager at Wybenga & Partners
  • 2012 – Appointed as Associate Director
  • 2015 – Awarded a Diploma of Financial Planning
  • 2016 – Appointed as Partner of Wybenga Group and Director of Wybenga Financial

Advisory Cadetships

What is an Advisory Cadetship?
An Advisory Cadetship enables you to commence your career whilst attaining the necessary university qualifications by studying part-time.

How does it work?
Generally, our cadets complete a relevant business or accounting degree at the University of New South Wales, the University of Technology Sydney, Macquarie University, or the University of Western Sydney.

The Firm provides 3-hours paid study leave per week to attend university. This can either be taken at the one time or broken between days depending on the individual’s requirements. In addition, the Firm provides paid study leave for both mid-semester and end-of-year exams.

We take the work life balance very seriously at Wybenga Financial and our cadets are encouraged to have a fulfilling life outside the office. A typical day will have you arriving at the office at around 8.30am with most days concluding at 5.30pm.

What are the benefits of an Advisory Cadetship with Wybenga Financial?
Our cadets benefit from the following:

  • Career path – on completion of their degree our cadets have significant practical experience which will assist them in advancing their careers
  • Work helps your studies – by working full-time our cadets are able to apply their practical knowledge in the university subjects
  • Camaraderie with other cadets – the Firm has a number of cadets at various stages of their career
  • Mentoring – cadets are paired with a senior staff member who oversees their progress and training both at work and with their studies
  • Communication and feedback – the Firm has an open door policy which enables all cadets to interact with all members of staff including Directors
  • Culture – the Firm promotes a friendly social culture with a number of functions throughout the year
  • Modern environment – including ‘socialising’ areas such as pool table and break out area
  • Training – ongoing support and technical training. We also provide internal and external training on a monthly basis
  • Remuneration – working full-time provides a market salary and independence with salaries being reviewed every 6-months

What happens when I complete my degree?
The completion of your degree is the first step of what we hope to be a long and successful career with us. The next step is the commencement of a Diploma of Financial Planning followed by completing the requirements to become a Certified Financial Planner (CFP).

There are always progression opportunities for the right cadets and we are dedicated to the long term development of our staff.

Who should apply?
Current Year 12 students or first/second year University Students who:

  • want to commence their career in financial advisory;
  • are due to commence or are currently completing a part-time business or commerce degree at university with an advisory major;
  • want to gain valuable hands-on experience while completing their qualifications;
  • are looking for a friendly working environment;
  • are team players who display initiative;
  • have a commitment to self-development;
  • possess excellent personal presentation and communication skills; and
  • are motivated and mature minded.

How do I apply for an Advisory Cadetship?
To apply for a Cadetship position at Wybenga Financial send us your details. Please also include in your covering letter why you wish to do a cadetship, include relevant qualities you possess, main interests / achievements, and any previous employment.

Interested candidates should initially forward a resume/covering letter of no more than 3-pages. Please provide full details of contact information (telephone or e-mail).

What if I have more questions?
For further information about our Cadetship program, please send your enquiry to info@wybengagroup.com.au