For Uni Students who want financial confidence that's customised, affordable, online and takes just 15 minutes of your time
Note: This is a typical process for a uni student with <5k in super who earns between 6 and 20k p.a. and won't cost you anything out of your pocket.
1 - Our process starts when you provide your contact details, tax file number (we have an easy way to find it) and email us a photo of your drivers license.
2 - We then find all your super accounts - where they are and how much is in them. If you then We will then are serious about proceeding we get you to e-sign some forms (on your phone) so we can see things like fees, performance and insurance. We will also ask you about 10 more questions / confirmations about things like what you are studying, if you have debts and if you own a property.
3 - Now the serious work starts for us. We go an prepare a customized strategy or financial plan for you. It revolves around 4 key areas:
- Consolidation - Putting all your super into 1 fund;
- Insurance - Analysing and (if needed) replacing your insurance with the best possible insurance for $2/day (more below). Bonus: we have a long term strategy to prevent you paying huge fees for poor quality insurance the industry is happy to sell you;
- Investing - We typically start with cash until you get to a base where it is cost effective to invest ethically and sustainably; and
- Audit and Tax - The main reason this is important is to ensure you are getting paid ALL of your super. As a uni student you are at high risk of being in the 30% of workers who are under paid on super.
We charge your super $200 for this (no costs out of your pocket) plus we get commissions from the insurance company. You will also pay the super fund fees.
We have designed our service so that the total costs to your super should be slightly more expensive now but within a few years you will be ahead.
4 - If (and only if) you like that strategy then you sign off on it and we go and implement it for you.
How are you different to other financial advisors?
We base our business upon working with you to put you in the strongest possible financial position as you move through life. For us it's not about making a quick buck on fees or putting you into a basic cheap product that isn't good long term value for money. You can see that in our pricing and the products we recommend that this simply isn't the case.
Why uni students? We don't have much money.
It's true but we have got our costs down where it's viable in the first year. The truth is that there are now very few independent financial advisors left. These are focusing on rich clients and so they typically make 10X the revenues from clients that we do - but that's in year 1...
We know you're probably going to be earning a lot more once you graduate and move into a career. Most graduates spend all of that and then go heavily into debt to spend on big ticket items. This is exactly what the big banks want because then your spending to pay for your debt.
So at Fin15 we simply think it's better if we help you get ahead instead of behind. So there will be financial coaching, professional accounting and tax plus there are some really exciting strategies we are going to help you implement in regards to insurance and investing.
What about non-university students? How much are you charging them?
If you are not a UOW student (we will expand to others later) or know someone on our team there is refundable fee of $200 for us to produce the strategy. So for UOW students we are going to put this plan together for you for free.
There is also an admin surcharge of $1000 for over 30's, $2,500 for over 40's and $5,000 for over 50's.
Plus the younger you are when you start the lower our management fee is as we base that off your age when you start. For example if you are 18 when you start we charge 0.36%p.a. on funds under management excluding your initial balance. If you start at age 25 that is 0.50%. At age 30 it's 0.60%.
Why we do this is because we we believe the younger you are when you start the more likely it is we can get better outcomes for you - that means you will, on average, have faster growing funds under management and there will be more opportunities where we can benefit.
Basically it's a model where we believe that we will do a really great job of looking after you so you are more successful and, in turn, in the long run we will make more money. Yep - we know others think that's a crazy model but we believe the future is that the more ethical businesses will do better.
Tell me more about your approach to investments.
First of all we do Ethical and Sustainable investments. Secondly we think longer term.
There are 2 main reasons we recommend starting small balances (under 10k) with cash (which means short term deposits with a bank). Firstly it's stable and there are reasons you need a solid base in your super account - like you can actually access some of that money if you qualify for financial hardship. Secondly you can't access many good investments and the ones you can are usually more expensive.
Also once you start saving for a big ticket item (like an overseas trip or a deposit for a house) those funds count towards that investment base - even though it's likely you may want to use a different strategy for growing that money.
Once you have that solid base we can and will take a unique and much more personalised approach to risk management. We can invest in some specific companies that interest you. And we will build you a really nice and diversified portfolio.
And guess what - we are actually going to tell you what companies you are invested in.
It's about financial confidence and it's a much better approach. Why? Because we believe if you have it you will actually save more of your money to invest.
Do I really need insurance and what's it got to do with super?
This really depends and the true answer sometimes is no. Like someone with no debts and no dependents probably doesn't need Life insurance. But there are a bunch of rules etc. that don't make it so clear - that's why there are a lot of advisors who specialise in insurance.
Ok, so you are a uni student and you probably assume you don't need it now. Well, firstly, there are 4 types of insurance: Life, TPD (total and permanent disability), Income Protection and Trauma. Whilst may not really need Life, TPD is good to have and it comes with Life. You can put Life and (basic) TPD inside your super and when you are in your early 20's it's worth it. Income Protection you probably want but you have to prove you are working enough (with different insurers having different requirements) - you will have to pay some of it out of pocket (though your super can pay some of it). Trauma is something we may recommend when your working and it can't be in your super.
There are 2 things you need to know about insurance is kept quiet. Firstly you can lock in REALLY cheap rates when you're in your early 20's. Secondly a lot of people are paying for insurance they are ineligible to claim, whilst others don't know you can claim.
We believe there is a huge opportunity to get young people a base level of insurance they will have for the rest of their lives. We focus on getting you the highest quality cover and we ensure it is right for you and we manage any claims for you. There will be periods when you want / need extra cover but then we will help you find the most cost effective additional cover. It will be unlikely you would replace you old cover. Why? Because we will show you in your strategy how much the exact same cover would cost someone 20 years older and you will be astounded - we are not talking percentages - we are talking multiples. You will want to keep that cover for life.
What about the audit and tax returns?
A recent industry super study showed that a whopping 30% of Australian workers are underpaid on super by an average amount of $2,000p.a. That's crazy and you have probably heard about big reputable companies being caught not paying super. If you are young, or aren't full time or work in hospitality or in construction then guess what - you are at higher risk.
That's why at the end of each financial year (if you earn over 6k) we have a certified accountant audit your pay slips and make sure your super contributions match up. They can then lodge your tax return for you and sometimes we arrange for additional accounting work to be done for you
If your question isn't here then fill out the form below and we will email you the answer and likely post it here for others:
Fin15 is currently finalising the legal and regulatory requirements to launch soon!
We are working with an independent group (=not a big bank) and working through all the steps so we have a solid base from which to start.
Our team of three has over 50 years of experience in the financial industry and are fed up with how the industry treats their clients. We are on a mission to change that.
Once we are fully compliant we will open our service to a select group of early customers. To be one of our first customers please enter your email below: