A D Danieli

‘Money Madness’ Monthly

December 2010

Volume 1, Issue 4

In This Issue:

· Hello again!

· Hot Topic: What is Financial Planning?

· Top Tip: Practical Tips to Save!

· 2011 Seminar Planning survey

· A bit about A D Danieli

Important Dates

· Thu, 23 Dec 2010

A D Danieli office closes

· Mon, 10 Jan 2011

A D Danieli office re-opens

Services We Offer

· Taxation

· Accounting

· Auditing

· Financial Planning

Newsletter Editor

Johnny Ly

Financial Services Info.

Adviser Profile

Financial Services Guide

Level 14, 275 George St

Sydney NSW 2000

(02) 9290 3099

www.addca.com.au

johnny@addca.com.au

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It’s beginning to look a lot like Christmas!

It’s December, and traditionally this is the month when businesses start to slow down in time for the festive season. Not me. I have commenced planning for 2011, based on the feedback received via the online surveys, emails and seminar. Thank you to those who have kindly provided feedback. If you have not done so and would like to complete the survey, just click on the “Commence Survey” button found towards the end of this newsletter.

For this month’s hot topic I provide a breakdown of exactly what is financial planning and what is contained in a financial plan. I feel it is important that you know what A D Danieli Financial Services is all about and how we can benefit you.

In our Top Tip section I provide 7 practical tips and strategies to save money. What makes these tips and strategies special is simply the fact that I personally have utilised all of them in order to achieve my first major financial goal, a deposit for a house.

After some careful consideration, I have decided to cease writing ‘Money Madness’ Monthly. Instead, I will produce a newsletter on a quarterly basis. The future newsletters will focus more on economic issues and I aim to provide general reporting on the performance of assets under our management.

So enjoy the last ‘Money Madness’ Monthly. Any feedback will be greatly appreciated.

On behalf of the team at A D Danieli, I would like to wish you and your family a joyous, relaxing and fun-filled Christmas and New Year.

Stay safe and see you in the New Year.

Johnny Ly (Financial Planner)

Hot Topic: What is Financial Planning?

Click to enlarge

It’s interesting to find that when I talk to people about financial matters, one of their first comments about financial planning is that “we only look at investments”. This misconception has led me to help demystify this very topic.

A full financial plan looks at various areas as depicted in the image on the left. It is a roadmap for your financial future, one that aims to achieve your financial objectives and goals. Ideally a full financial plan is reviewed every 3 years or so to ensure that the plan remains current and the goals are closer to being reached.

So what does a financial plan consist of:

Current Financial Situation: It is important to do a thorough review of where you are at now, and look at your financial goals, objectives and where you want to be.

Wealth Protection: Australians have one of the highest level of underinsurance in the developed world. Your efforts to build personal wealth need to be protected with the appropriate levels of insurance cover and a full financial plan should address this area.

Estate Planning: Ensuring that Wills and proper estate planning strategies are in place in case tragedy strikes.

Tax Planning: All strategies that are used in a financial plan should have a tax effective focus. Savings in tax is one of the key ways to ensure more money is in your pocket.

Wealth Creation: Certainly a key component for a financial plan is the building of wealth. Wealth creation strategies in the financial plan need to ensure that the risks involved are within the risks tolerances of the client.

Retirement Planning: Whatever life stage you are at, we review your superannuation situation to ensure that the strategies align with your goals in retirement.

Although in reality only a few of the areas of financial planning are focused upon at any point in time, over the course of your financial life, you will need to focus on all areas. The value of the financial advice is seen over time. The savings in tax and the growth and returns on investments help clients to achieve their financial goals. Ensuring that both the assets and wealth of clients are well protected by insurance is another way that Financial Planning adds value.

Top Tip: Practical Tips to Save!

There is no doubt that the cost of living in Sydney is high. Groceries, utilities and general household bills have increased to outrageous levels in the past few years. So now I once again don my “Super Saver” hat to provide you with actual tips and strategies I personally used in order to save for my first major financial goal which was a deposit for my first home.

Identify what I am saving for, in this case my first home.
Filled up my car on days when I knew petrol was at its lowest price and tried to utilise the discount fuel vouchers if any were available. If travelling by train I would purchase periodical tickets as daily or weekly fares are ridiculously expensive.
Bring previous night’s dinner for lunch to work at least 4 days a week. I would treat myself a day a week to eat out.
Rather than subscribe to magazines or purchase books I would venture to the local library and borrow books, magazines and DVDs.
Purchased essential items I needed only when they were on special and at purchased in bulk when applicable.
At the time all my purchases went through a credit card that had a reward scheme as the first year’s fee was waived. Every year when it was time for the annual fee payment, I would ask to have it cancelled because I really didn’t want it but year after year they waive the fee to entice me not to cancel. By the third year I decided to definitely cancel and redeem my gifts. Since I managed my cash flow well, I was able to pay off the bill in full each month.
The money saved went straight into a high interest bearing account (First Home Saver Accounts did not exist back then).

I was quite aggressive with the savings regime as I was very keen to get into the property market. I believe I was able to save approximately 70% of my income at one stage. After implementing these strategies for some time, I started to get used to saving and my mindset had changed. To this day I am still able to save for the things I want and holidays I want to take.

I now look forward to implementing tax effective wealth creation strategies where money is used to make money.

2011 Seminar Planning Survey

During November I sent an email to our readers, requesting them to fill in a short survey for the purpose of providing informational seminars that they would be interested in. Thank you to all who responded. If you have forgotten and would like to complete the survey, please press on the button below.

This survey will take only a minute or so of your time and it is greatly appreciated. The results of the survey will be used to assist me to plan for a series of informational seminars in 2011.

About A D Danieli

Click to enlarge

We at A D Danieli specialise in taxation, accounting, auditing and superannuation. We have recently expanded our services and now offer financial planning.

Our aim is to develop solutions that meet your financial goals and objectives. In doing so, we work with you to provide tailored financial advice with a focus on creating wealth for you and minimising your tax so as to not erode the benefits of the wealth creation strategies.

Mission Statement

To be the best Chartered Accounting firm in Australia:

Providing first class accounting, taxation, auditing and financial services to our valued clients.

A D Danieli Financial Services Pty Ltd (ADDFS) provides fee-for-service financial advice to its clients. Any commissions that are received for product recommendations will be rebated to the clients. ADDFS is a Corporate Authorised Representative (No. 352758) of Financial Spectrum Pty Ltd, a holder of an Australian Financial Services Licence (No. 334400).

Disclaimer: The information contained in ‘Money Madness’ Monthly is of a general nature only, does not take into account your particular objectives, financial situation or needs. Accordingly the information should not be used, relied upon or treated as a substitute for specific financial advice. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither A D Danieli nor its employees nor its agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.

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