WealthDesign

If you watch the Big Bang Theory, my favourite programme ever (apart from Dukes of Hazzard –  nothing is better than that!), you’ll know about Sheldon’s cable show ‘fun with flags’.

Well recently some people have been having ‘fun with words’.  People have been talking about ‘putting clients’ interests first’.  That this was even a discussion was a bit of a revelation for the team at WealthDesign, because we never realised it was a new thing.

The basic idea is that where the outcome for the adviser and the client are in conflict, the right thing to do is ensure the outcome favours the client.  Do the right thing and so on.  Rob Everett from the FMA recently said that ‘clients’ interests first’ “can mean different things to different people, in different situations”.

No, it doesn’t.

I prefer a higher standard – ‘clients’ best interests first’.  This one can be much harder to meet if you can only sell one or two product lines, rather than compare and choose from a wide range of providers and products.

For example, if you go into a bank that sells its own KiwiSaver, and the teller suggests you change to that KiwiSaver, they are considered to be putting your interests first, because they don’t receive a commission for making that sale.  The bank product is not being chosen by the teller over another product, because they can’t sell any other product, so there is no conflict.

What if that bank’s KiwiSaver has much higher fees than the one it replaced?  It might have much poorer returns (we know which KiwiSaver schemes have consistently underperformed) than the one it replaced.  The bank teller doesn’t compare the old scheme to their one.  They won’t give a written statement of advice outlining the pros and cons of switching.  They won’t tell you that their salary-not-commission job is tied to targets, bonuses and KPIs that require them to sell things. They are having ‘fun with words’, at your expense.  That sale would not meet the standard of ‘clients’ best interests’. 

And this is the problem.

If you go to a doctor or a lawyer, and they said to you “just so we’re clear – my duty is to put your interests first, but I won’t necessarily be acting in your best interests”, would you take their advice?

At WealthDesign when we say we put our clients’ best interests first, we think it means what you think it means.

Regan Thomas
WealthDesign – a life well planned

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The Financial Markets Authority (FMA) has recently released information about advisers who are allowed to give personalised financial advice – these are the Authorised Financial Advisers (AFAs).  There are only 1800 AFAs in New Zealand, and the number of these is falling every year (as the qualification isn’t easy to achieve, plus AFAs tend to be experienced advisers, who are of retirement age).  In the Manawatu, there is only one AFA for every ten thousand people.  If you take out the advisers working as Qualified Financial Entities (QFEs), like the banks etc, the number of advisers who aren’t going to only sell you their employer’s products, are few.

Private banking or personalised advice offered by banks, is only for the wealthy.  For example, you need $1,000,000 in assets to get personalised advice from the BNZ, or $2,000,000 if you are a Westpac customer.

At WealthDesign, we have been offering personalised financial advice for over 16 years, backed up by independent research.  You don’t have to be ‘wealthy’ (although we have clients who are) to get personalised advice,  as we understand that different people, at different stages of life, have different needs.  We have advisers of different ages who will work alongside you, who take the time to focus on your stage of life, and your unique life experience. 

We aren’t owned or licensed by any one insurance company or bank.  We aren’t part of the QFE telling us what and how we should manage your money.  We deal with a wide range of insurance companies in the market and back up our recommendations with independent research.  If you work with us, you have the peace of mind of knowing you have someone who works just for you.  We have your interests at heart, and will be there today and in the long term, working alongside you, to get the best outcome for you, and you alone.  You get total transparency when you work with WealthDesign. 

Give us a call and discover how easy it can be to gain peace of mind with your finances.

John Barber
WealthDesign – a life well planned

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I read an article about driverless cars and it got me thinking about how the world has changed.  You have things like UBER, bookabach and Airbnb; all new concepts that have insurance consequences, especially if you don’t tell your insurer what you are doing with your assets.  Commercial car insurance is more expensive than private insurance for a reason, and if you are using your car for commercial use, you need to tell your insurer.  The same goes for your home and contents insurance, if you have decided to rent out your house.  The rules around the Restricted Driving License, is also one of the areas people leave themselves open on.

The old ‘she’ll be right’ attitude is all well and good – until something goes wrong – then it can be a big deal.  If you aren’t sure, it’s always better to check, than to ignore the issue.  

So if you’ve got a question, give us a call.  No question is a silly one.  We’re here to help.

John Barber
WealthDesign – a life well planned

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I bet within your insurance policy there are hidden benefits you don’t know you have. 

Here’s a quick snapshot:

• The right to increase your cover under special conditions without piles of health forms
• Free trauma cover on your kids and also the right for your kids to increase their cover (without proof of good health) over time
• Grief or anxiety counselling support payments for grieving families
• Premium holidays in the event of financial hardship
• Career counselling
• Business counselling and budget advice
• Option to convert to level premiums at any time
• Financial planning payments to help get quality advice around claims and money.

Your greatest hidden benefit is us!  Yes, we know which companies have the best policy wording and the most competitive pricing.  If you have to claim, you can have at least 10 hours of our time at no cost.  This can be hugely supportive at a very stressful time as the following quote from a client shows:

“Thank you so much. That’s a huge weight lifted off our shoulders re: income protection. We have got so much on our plate at the moment. We appreciate your on-going help and support.”

We know the insurance companies and their people and we know the questions to ask, when to smile and when to jump up and down! We work for our people, not the insurance company.  We stand beside our clients – in good times and in bad (sounds a bit like a marriage vow really, doesn’t it?).

John Barber
WealthDesign – a life well planned

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They grow up so fast!  I visited a few clients recently who have been with me for a decade or so.  Some, when I first met them, had kids that were school age.  Now we are giving the kids their first policies as they head off to their first jobs, university, or overseas.   Several clients started with me as young fellas a similar age to me, single, renting, and working.  Now we’re all married house owners with kids.  Some have moved to their second or third houses, and at our age, the mortgages seem to be getting bigger, rather than smaller.  And it got me to thinking.  Some businesses are highly transactional, such as real estate or car sales.  At WealthDesign we are a relationship business – we actually care about being a helpful and valuable part of our clients’ lives.  

Change is one constant in all of our lives.  There is a valuable feature hidden in your policy which is all about helping at times of change – the ‘special events increase’.  Having a baby, buying a house, getting married and several other changes count as a ‘special event’ which means you can increase your life insurance with no medical questions.  For some this is a convenient and efficient way of changing their policy, but for others this is a great way of getting more cover without telling the insurer about that operation you had recently, or your current height/weight, or the little pills you’re now taking every day!   Some terms and conditions apply, but it’s worth looking into.

Insurance is not a set-and-forget product – it needs to change as your needs change.  And they will keep changing until you die.   If we haven’t seen each other for a while, or you’ve had a change in your life circumstances, please call us.  We’d love to catch up –  we’re here to help.

Regan Thomas
WealthDesign – a life well planned

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