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What is the future of advice and how far off is superannuation 2.0?

Financial advice can make a massive difference in people’s lives. We know this because we see every day in our data just how much better off people are when they follow the advice. But up until now, the majority of Australians haven’t been able to afford it. As a consequence, most Aussies are unaware of what advice is and how it can help them be better off.

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So, what does the future of personal financial advice look like? Well, for starters, we need to tackle the issue of supply and demand. Right now, there simply aren’t enough advisers to help the people who need it – and that’s pretty much every working Australian. So, along with the existing advisers, digital advice needs to be available to ensure every Aussie has access to advice whenever they need it, so they can make smart decisions about their money. In the future, advice will be ubiquitous with everyone having the tools and information they need to take control of their finances. A digital companion that understands your current situation and guides you based on what you need will become the new normal.

In this world, the advice changes as your financial circumstances also change. The only priority is for you to be better off. In the context of your current situation and your goals. It’s not looking to sell you products but rather reach your goals sooner, while ensuring you utilise the “rules of the game”, guiding you within the existing legislation.

Just like Spotify and Netflix revolutionised how we consume entertainment, technology will once again revolutionise the personal financial advice industry so that everyone can enjoy the benefits of personal financial advice, which will make every Australian better off.

But how do we land in this world where personal financial advice is available to everyone?

 

Well, we need technology. We need technology that works within the regulatory framework yet is still affordable to the majority of Australians. We need technology that puts people, not products, as the most important factor. We need technology that can guide everyday Australians, at any given time in their lives, on ways to pay off debt faster, save for something you love, boost your super and set you up for your future, sort out your insurance and organise your money based on your personal needs. When we all have access to personal financial advice, as a society, we will have less financial stress, less pressure on the federal government, a stronger economy which will snowball to every Australians’ financial situation getting stronger.

And who can help us get there? The most trusted institution that every working Australian has access to – superannuation funds.

In December last year, the government announced that super funds are expected to provide quality advice to their members. However, to meet the scale of Australians who require that advice, we’ll need to look at a licensed, quality digital solution that can work cohesively with human financial advisers.

There’s no doubt in my mind that super funds offering personal financial advice to members, through revolutionising technology, is the only way we can ensure Australians have access to advice at scale. Does that mean we’re on the cusp of superannuation 2.0, and if so, what does this new world look like?

 

This is what I think:

1. We’ll live in a world where everyone understands advice

New research from the CFS in The Empowered Australian Report 2023 showed that one in three Australians who have never received advice cannot articulate a single benefit of receiving financial advice. This isn’t a surprise. There is no doubt unadvised consumers lack knowledge of the benefits of advice and how this would positively impact their lives. How can we know the benefits of something, if we’ve never experienced it?

Flip that on its head, advised Australians understand the value of the advice they pay for. So in this new world, all Australians will see and experience the value of personal financial advice.

2. Super funds will have a better report card

In this new world, super funds meet their obligations and no doubt have a better report card when the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) complete their retirement income covenant (RIC) reviews.

In this world, super funds understand what members are seeking from their super fund alongside the obligations placed upon them by the RIC. The most recent Otivo superannuation report showed that nine out of 10 Australians would like their super funds to provide advice on issues that affect their ability to add to their super fund, and more than half (53 per cent) of members want their fund to offer advice, while almost eight in 10 (79 per cent) want their super fund to be more proactive in providing advice.

In this new world, super funds are meeting these needs through revolutionised technology that helps them do better by their members.

3. Superannuation funds can truly become member-first

Gone are the days when super funds serve as just a mechanism for our retirement savings. This new world of superannuation sees funds emerge as dynamic hubs of financial education and empowerment. You’ll be able to grow your super, budget and plan for your retirement.

The technology that powers this change will be created by those in financial advice, finance, government, superannuation, compliance and technology, all working together to produce quality financial advice to help all Australians be better off.

4. A changed perception of money and how we handle it

Superannuation 2.0 will see us enjoy a shift that holds the promise of transforming the way we perceive and manage our money. We’ll all get to enjoy real-time tips to help us proactively reduce our taxes and enhance our savings, while preparing for our retirement. And this won’t be available to just those who can afford it; thankfully, we’ll all be able to receive quality, comprehensive advice that is accessible. Just as it should be.

We’ll also be able to support Australians to understand the value of planning for retirement. We’ll be able to tackle data that shows 81 per cent of Australians rely solely on their employer superannuation contributions to increase their super savings. We’ll have younger Australians considering their future, so retirement is less likely to feel overwhelming and unmanageable.

5. Super funds will become proactive partners in our financial journeys

With the support of digital financial advice, super funds will be in a position to become proactive partners in our financial journeys. Imagine signing up for a super fund and being given access to bespoke financial roadmaps tailored to your unique goals and financial circumstances. Superannuation 2.0 equips us all with the tools and knowledge to make informed financial decisions.

Data will be critical to guiding and informing, and AI will become the new norm. This data will proactively identify issues before you even see them yourself. It will also help you choose an appropriate investment for your super; it will guide you on the best options when it comes to topping up your super and how long your funds may last in retirement and it will determine an appropriate type and level of cover for your needs. With that information changing as your financial circumstances also change.

6. Digital financial advice will work with humans, after all, that’s when technology works best

There is no doubt that some level of adviser interaction will always be required. Quality financial advisers, as we know them, will become specialists and will no doubt continue to offer human services to their clients, with digital advice working alongside the traditional method to support Australians at scale. In my opinion, just like we embraced online shopping and online banking, quality and comprehensive digital financial advice will integrate into our lives in the same way. It will be easier, will be guided by technology to help us, and when we need it, humans will be available to support us as required.

 

 

 

Paul Feeney is the chief executive officer of Otivo.
April 08
ifa.com.au

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Anjan Das

Anjan Das

Founder / CEO

Anjan Das

Anjan Das is a financial advisor with more than 33 years of service. He specializes in helping clients plan for the future and achieves their goals, whether it’s saving for retirement or buying a home.

CU Financial Planning is a boutique firm that offers financial planning assistance to clients all around Australia from its location in Sydney’s central business district. Anjan Das has over 33 years of experience in the financial services industry, including 17 years as a financial planner. He holds postgraduate degrees.

Mr. Das began his career in financial planning at a credit union, where he has since been offering full service to a chosen clientele. He is a member of the Financial Planning Association, a Certified Financial Planner, a Fellow of the FlNSlA, and a Senior Assessor / Marker for Post Graduate programs offered by FINSIA / KAPLAN Higher Education.

When his former employer, a Credit Union, decided to unload the Financial Planning business in November 2006, Mr. Das founded the Sydney CBD-based professional advice service CU Financial Planning in February 2009.
Mr. Das created a credit union business strategy where the needs of the customer came first and would provide customers with a better value proposition and more individualized service.

Mr. Das has 36 years of experience in the financial services industry, 20 of those as a senior financial planner who offers thorough counsel. Mr. Das is a Post Graduate Financial Planner certified by FINSIA and a former Post Graduate assessor for students vying for Kaplan Professional Financial Planning certifications. Mr. Das has also been accepted as a Senior Fellow of FINSIA and has earned the Certified Financial Planner accreditation from FPA, Australia. Anjan specializes in helping clients with investments, SMSFs, personal risk insurance, and superannuation.

John Menezes

John Menezes

Mortgage Broker / Financial Planner

John Menezes

John Menezes is a highly qualified and passionate financial professional with a diverse background and a deep commitment to helping Australians achieve financial freedom and wellbeing.

He is a Chartered Accountant from India and a CPA Australia member. John also holds multiple industry-recognized qualifications, including:

  • Diploma in Finance and Mortgage Broking Management
  • Diploma in Financial Planning
  • Self-Managed Superannuation Fund Adviser (Personal Advice) qualification
  • Certificate IV in Property Services
  • Class 1 Real Estate Licence

With nearly 20 years of experience as a Financial Controller for multinational companies across India and Australia, John developed a strong foundation in corporate finance. However, his true passion lies in educating and empowering individuals to take control of their financial futures.

In 2013, John transitioned into Mortgage Broking, driven by a desire to help everyday Australians secure their dream homes and build investment property portfolios. Over time, he identified a critical gap in his clients’ financial journeys—many were burdened with large mortgages and young families, yet lacked adequate protection and long-term financial planning.

This realization led John to expand into Financial Planning in 2019, enabling him to offer holistic advice on:

  • Personal Insurance (Life, TPD, Income Protection, Trauma)
  • Superannuation strategies
  • Wealth creation and investment planning

Today, John provides a comprehensive, one-stop financial solution, combining mortgage broking, financial planning, and property services to support his clients at every stage of their financial journey.

Retirement Planning

At CU Financial Planning, Retirement Planning is about helping people achieve the life style goals and objectives that are important to them. Retirement means different things to different people. For some it is becoming a grey nomad and travelling Australia, for others it’s endless days sitting on the back porch. Maybe it’s the opportunity to reduce the golf handicap or perhaps try a whole new career as an unpaid volunteer.

Money in our view should not be an objective in itself, so our job is to help clients make wise choices with the wealth they have accumulated so they can maximise the life style afforded them by a lifetime’s hard work.

When making decisions as to the strategies and structures we recommend, the types of income streams appropriate, and the mix of investments, we are always mindful of what impact these decisions will have on our clients. As part of our retirement planning service, we focus heavily on clients achieving their lifestyle objectives rather than focusing solely on taxation savings or leaving a large legacy.

Topics we expect to discuss with you about your retirement include:

  • Minimising tax
  • Maximising Centrelink benefits
  • Estate planning wishes and minimising beneficiary tax
  • Structuring of income streams
  • Income needs in the short and long term in retirement
  • Potentially funding Aged Care
  • How long your capital will last or how much of a legacy you wish to leave to your children

Many of our clients also appreciate the interest we take in their estate planning. We provide estate planning advice and visit our clients’ legal advisors with them to ensure they and their families get the best outcome from this important area.

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Superannuation & SMSF's

Superannuation

Superannuation, including SMSF’s (self-managed superannuation funds) is a complex area and the rules are forever changing. Almost all Australian’s have a superannuation account due to legislative requirements however few understand all the opportunities that a well-managed superannuation account can bring.

For those approaching age 60, superannuation strategies can often save a savvy investor thousands of dollars of tax without impacting on their available cash flow. Even for those who are younger, strategies such as co-contributions, spouse contributions, personal deductible contributions and salary sacrifice to name but a few, can significantly improve one’s wealth if regularly taken advantage of.

At CU Financial Planning we have access to some of the lowest cost products available in the market and we are often able to save our clients significant amounts of fees.

Self-Managed Superannuation Funds (SMSF’s)

Self-Managed Superannuation Funds (SMSF’s) are growing in popularity and we regularly assist clients to decide if this is an appropriate investment vehicle for them. We can assist in setting up self-managed superannuation funds, investment advice and management and structuring the SMSF in either accumulation or pension phases.

We also have significant expertise in the structuring of personal insurance within superannuation accounts including self managed super funds. Protecting against things going wrong is an important aspect of a well made plan, and Life insurance, TPD, Trauma and Income Protection can help minimise this risk.

Caution should be taken with superannuation investing and more particularly with contributions as it easy to incur unnecessary tax and there are now many traps for the unwary. For more information about superannuation and the services that we provide, please contact us.

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Investment Advice

After helping our clients get the right strategies and structures in place we put significant emphasis on investment advice and ensuring the portfolio is tailored to the individuals needs.

We commence with a risk profile and that drives the broad asset allocation of the portfolio. We aim to produce a portfolio on the efficiency frontier maximising the possible return relative to the risks that is appropriate for our client to take. Preserving capital is always our priority. Considerations are the clients tolerance to risk, time frame and the willingness to accept volatility.

Through our investment process we consider our clients goals and aim to help them achieve their aspirations in the medium and long term. As part of our investment advice, we focus on minimising costs of investing, finding the best funds to achieve tax effective portfolios, minimise risk at a number of levels and continuously review the results.

We recognise we are in a world that is changing rapidly and a client’s portfolio like their lives never stand still. As a result, our investment advice is tailored to those who want a pro-active approach to managing their assets.

Our Investment Philosophy

  • Preservation of capital is our number one priority.
  • Investment returns are more predictable over lengthier periods of time.
  • Investments go up and down, to achieve higher returns it is essential to accept volatility.
  • There is a direct relationship between risk and return.
  • Investment and administration expenses reduce returns and we endeavor to minimise costs wherever possible.
  • Investment diversification reduces risk.
  • Liquidity of investments should never be ignored.
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High Net Worth Services

We understand that high net worth families, businesses and individuals need advice that caters to their specific needs. We can help with speciailsed services in the following:

Structuring of entities (including companies, trusts, SMSFs)

We provide comprehensive financial advice for individuals, families, and their associated entities (companies, trusts and self-managed superannuation funds). Our team offers guidance on financial strategies that align with your overall family wealth management goals after considering taxation, risk management and intergenerational wealth transfer needs.

Wealth management and Investment services

Our core service is developing personalized investment strategies and managing diversified portfolios. We work closely with you to understand your financial goals, risk tolerance, and time horizons to create and implement tailored family wealth management plans. We have competency in direct equities, exchange traded funds (ETFs), money market accounts, (separately) managed accounts (SMAs) and partner with some of the world’s leading managed fund offers domiciled in Australia, the US and Europe.

Family tax planning and compliance

We offer strategic financial advice that takes into account tax implications. We can help you understand how different investment decisions and financial strategies might impact your tax situation, and work alongside your tax professionals to implement tax-efficient financial plans. Our advice aims to optimise your financial position while ensuring you're well-prepared for your tax obligations.

Estate planning and intergenerational wealth transfer

Our comprehensive financial planning services include strategies for effective estate planning and smooth intergenerational wealth transfer. We help you develop a robust financial framework to support your legacy goals, ensuring your wealth continues to benefit future generations. Our team assists in creating financial strategies that align with your estate planning objectives, including analysing the long-term implications of different wealth transfer scenarios. We also provide guidance on structuring your investments and assets to facilitate efficient wealth transition, helping to preserve your family's financial legacy for years to come and ensure the wealth remains in the family.

Business Succession Planning

This protects and prepares shareholders, trustees and their families from unexpected events such as injury or death of their business partners. This includes advance planning for events that might cause the business to need winding up through to immediate issues upon retirement of a partner such as equity transfer and taxation management.

Specific areas we work on with our clients’ accountants and lawyers include:

  • Funding Buy/Sell (Critical Events) Agreements
  • Structuring funding for tax efficiency
  • Capital gains tax management after sale of business or critical event
  • Key Person Protection

Philanthropy

We can help you integrate charitable giving into your overall financial plan. This includes advice on structured giving strategies, the financial aspects of setting up charitable trusts, and aligning your philanthropic goals with your overall wealth management strategy.

Family Governance and Education

We facilitate a collaborative approach to managing your family's wealth, with an investment committee structure. This service is designed to involve family members in key financial decisions and portfolio management processes. We provide a framework for regular family financial meetings, where we present investment performance, discuss market trends, and explore new opportunities. This approach not only ensures transparency but also helps educate and prepare the next generation for responsible wealth management. By fostering open communication and shared decision-making, we help align your family's financial strategies with your collective values and long-term objectives.

Lifestyle and concierge services

We understand that managing complex financial affairs can be time-consuming and challenging. Our comprehensive financial planning services are designed to simplify your financial life, allowing you to focus on what matters most to you. We act as your primary point of contact for all financial matters, coordinating with other professionals such as accountants and lawyers to ensure seamless management of your wealth. Our team provides regular consolidated reporting, proactive advice on financial opportunities and risks, and timely reminders for important financial deadlines. By centralising your financial management, we help minimise the complexities and administrative burden, providing you with peace of mind and more time to enjoy your lifestyle.

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Centrelink & Aged Care

Social Security assistance is provided by various Australian Government Departments including Centrelink and the Department of Veteran Affairs. At CU Financial Planning, we understand that Centrelink plays an important role for individuals and families when it comes to planning.

Payments such as the Age Pension and Disability Support Pension provide long-term financial support whilst Newstart Allowance and Sickness Allowance provide assistance for a shorter period of time. Other payments such as Family Tax Benefit, Parts A & B assist with the cost of raising children.

As well as the payment of benefits you may be entitled to access certain fringe benefits. For example, if you are of Age Pension age and/or are receiving the Age Pension you may be entitled to concession cards such as Pensioner Concession Card, Commonwealth Seniors Health Card or the State Seniors Card which offer concessions, benefits and discounts. The Department of Veteran’s Affairs also provides similar benefits.

Our Centrelink advisory services provide you with strategies and advice to ensure you:

  • Maximise Centrelink benefits, such as the Aged Pension
  • Gain entitlement for the Commonwealth Seniors Health Card
  • Gain entitlement for the Low Income Health Care Card
  • Family entitlement planning, incorporating Family Tax Benefits, Paid Parental Leave, and/or the Baby Bonus

We are registered with Centrelink and My Aged Care and can represent you as a nominee and lodge/update all documents in order to make this process as easy as possible.

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Insurance Planning

Life insurance is not merely a cost, though it often feels like it. It is peace-of-mind that if a nasty surprise happens in your life, the consequences are covered for you and your family. Insurance provides you with the ability to manage the financial and emotional impact of some of the more drastic surprises, whether personally or in your small business.

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

If you answer yes to any of the following questions then you should ensure you have adequate insurance. Many Australians are underinsured and the results can be very serious for families should there be a death or serious injury.

  • Do you have a mortgage?
  • Do you have school fees?
  • Do you have any personal loans?
  • Do you have any credit card debt?
  • Do you have dependents?
  • Would your financial position be affected if you were to suffer from an illness or injury?
  • 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 have distribution agreements with all major Life Insurance companies and we can assist by helping you determine your needs and recommend an insurer that is right for you.

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Annuities

As a product, annuities are a simple concept - in exchange for paying a lump sum, you become entitled to receive a guaranteed income for a defined period of time. However, in practice, annuities can be relatively complicated because planning what you need in retirement is also complicated. For example, how does a retiree know how to plan properly if they don't know precisely how long they are going to live?

There are many annuity types to choose from but with options come added complications. Having choices mean you need to be very aware of the different product conditions and options that must be considered. For example, having a product that guarantees you an income, regardless of how the economy or markets may perform, is good but you may find you are locked into the product and unable to withdraw any funds early, regardless of how your circumstances may change.

It is our job is to make sure you get the decisions that best reflect your needs, and which protect your nest egg into the future. We have distribution agreements with major annuities providers (Guaranteed Lifetime/Life Expectancy payments) such as CHALLENGER, ALLIANZ RETIREPLUS, and GENERATION LIFE.

Some of the different annuity options are:

  • Fixed "Term" or "Lifetime" Annuities - you can choose to buy an annuity which is for a fixed period of years (e.g. from 1 to 50 years) or one that provides for a regular payment until you die.
  • Payment Frequency - you can choose how often you receive payments, such as monthly, quarterly, six monthly or annually.
  • Withdrawal and Access to Capital - annuity products are typically designed to be held to "full term", but some products will provide an option to access all or part of your capital early.
  • Indexation or Inflation proofing - you can typically choose to have the regular payments fully or partially adjusted in line with the Consumer Price Index (CPI) or not at all.
  • Reversionary or not - you can nominate someone else to receive your payments in the event of your death - they are known as the "reversionary".

CU Financial is committed to making your journey through retirement as good as it can be. To discuss your options further please get in touch.

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Value Add Services

Access to a Network of Professionals.

While we focus on your financial planning needs, we can also help manage your other financial matters. We do this by working with a dedicated group of trusted associates to provide professional services that include a Tax agent/Accountant to lodge Tax returns; and an Estate Planning Law firm to manage matters such as wills, power of Attorney, Enduring guardianship, and Probate.

CU Financial is committed to making your journey through retirement as good as it can be. To discuss your options further please get in touch.

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