As we enter the final stretch of the 2019 calendar year, a look back and reflection shows that it certainly hasn’t been dull.

We regularly get feedback, especially from the clients who have been with us for many years, that they like to hear about what is going on at Navwealth. I have spent some time reflecting on the things that have impacted our clients, the business and myself this year and have put my thoughts below. Our ultimate goal behind everything we do, is to continue to improve our provision of advice to you.

Our digital world

In a global sense we have all known for decades how powerful the U.S President is but who would have thought 10 years ago that a simple tweet could impact the world in seconds and move markets by billions of dollars. Whilst Twitter was invented in March 2006, I don’t think the designers could have envisaged it being a mainstream tool for communication. Without doubt, the incredible speed of which information now flows around the globe has increased the volatility of investment markets.

Therefore, as investors we need to understand how to cope with this volatility and not react by making poor or hasty investment decisions, like selling after a fall due to a doom and gloom tweet.

The June to September 2019 period has really demonstrated the importance of staying true to your investment goals and not reacting to increased volatility. I am also very pleased that many clients now understand that this is normal and most have learned not to panic.

 

Our Industry and Navwealth

I would like to thank you, our clients, for the loyalty and commitment you have given to us as we are now
in our 28th year of business. It is no secret that the last 18 months has not been a great time for the financial services industry as the advice landscape undergoes its most significant reform in more than 30 years. The Royal

Commission certainly shocked us all and has highlighted some of the problems in the way advice has been delivered in Australia.

At Navwealth we have always been focused on providing trusted advice to our clients and we are therefore pleased to see that there will be improvements for all Australians
into the future. We do have some concerns about what the cost will be to consumers, as increased regulation generally increases the cost of goods and services.

There is going to be a huge shortage of advisers in Australia in the coming years. I believe that as many as 30% of advisers will leave the industry in the next 3 years. Some will leave as the professional standards are too high for them to meet, which will increase the professionalism of advice in Australia. Some will leave due to the increased cost of delivering quality advice being it too difficult for their business to sustain. Some will leave due to the increased education requirements that came into effect on 1 January 2019 and the further changes from 1 January 2026. And finally, some advisers will leave due to retirement given the average age of advisers is well over 50.

At Navwealth we have already welcomed new clients as a result of many banks no longer providing
financial advice and clients needing someone to help them. Going forward, we see this disruption as a real opportunity for Navwealth, so don’t worry – we are not going anywhere!

 

A business built on trust

We understand and believe that we are in the business of ‘Trust’, first and foremost, hence our decision in 2014 to begin working with the Beddoes Institute in Melbourne. To join and remain in the Most Trusted Adviser Network of less than 120 advisers Australia-wide the criteria is certainly challenging and is based solely on our clients’ feedback and ratings. We are delighted to have made it through in 2014, 2015, 2016, 2017 and 2018 which is something we are extremely proud of.

To ensure we are continually meeting and exceeding your expectations, we have once again engaged the Beddoes Institute to conduct their survey of our wealth advisers.
If you were contacted by Beddoes and completed the recent survey, thank you. Your time and feedback is greatly appreciated.

 

 

A business based on referrals

As you may or may not know, nearly every Navwealth client has come to us via a referral: that is, referrals from you and from other professionals such as lawyers.

As we love and rely on your referrals, we wanted to make it easier for you to describe what we do at Navwealth, so we have just finished a number of videos showcasing our services, our values and who we are. Many of the videos are already on our website. Don’t be too hard on us when you see them as we realised just how awkward it is to perform in front of a camera. I am quite sure none of us will be changing our day job to work on TV!

 

Providing Integrated Advice

It’s now been 9 years since Navwealth became what we call an “integrated advice business”, meaning we provide tax, accounting and business advice along with financial planning and wealth management advice and services.

There is not a month that goes by that we don’t see the wonderful benefits and opportunities our clients experience by having all of their advisers working together. This is especially true for new clients as we uncover all the holes in their existing financial structure or planning.

At Navwealth we have developed a new phrase to describe our process. It is called the Four D’s, and you will see this in our videos and future communications.

The Four D’s describe the entire journey we go through with our clients to help discover what’s important to them, how to improve their financial position and of course their overall lifestyle. Finally, and most importantly, then it’s all about staying on track to reach your goals as you navigate various twists and turns along the way.

 

The Advice Landscape

The fastest growing advice areas at Navwealth are aged care advice, clients wanting to assist their children into property, and business advice for our clients who are self-employed.

The aged care advice often is not for our direct clients but for their parents. Over the last few years we have been building this specialist advice capability and Andrew Wem is our Specialist Accredited Adviser at Navwealth.

There are many ways to financially structure your adult children into property – it all depends upon your objectives and values. If you would like to discuss this further, please contact our debt advice specialist.

Finally, regarding business advice, I must say recently I have seen first-hand just how wonderful Simon Prowse is at helping business owners improve their businesses, so I am not surprised to see several of our small to medium sized business clients achieving their financial and lifestyle goals.

 

Technology

In the last 12 months we have made huge improvements to our cyber security and accounting software so we can make sure we keep your data secure. Over the next 12 months we will be making further technology upgrades by changing our client relationship software (CRM) and financial modelling software. All of these improvements are so we can have live updated data on more of our clients’ investments and bank accounts so we can be more efficient in the way we deliver advice to you.

 

 

 

If you have any questions about Navwealth feel free to drop me a note or give me a call as I am always keen to hear from you.

Again, thank you for your support and we look forward to seeing you soon.

Best Regards

 

Craig Banning
CEO, Navwealth