Your Best Life: How to Achieve Financial Freedom with the Guidance of a Financial Adviser

By Helen Nan

Money management is not as hard as you think once you have a financial blueprint in place. In this book, you will learn financial planning strategies and frameworks from several relatable real-life stories. Are you ready to get off the earning-spending treadmill and live the life of your dreams?

This book shows you:

•The

• Language: English
• Publisher: Wealth and Life Planning Pty Ltd
• Release date: Jun 19, 2023
• ISBN: 9780648770145

Helen Nan

Helen Nan has been a financial adviser since 2011, helping hundreds of clients achieve their lifestyle goals and aspirations. She is passionate about providing clear and straightforward guidance, demystifying the planning process, and helping you make the best decisions for your life, regardless of what stage you are at in your journey. She is the author of 'Your Best Life' and the founder of Compound Freedom.

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First published in 2020 by Wealth and Life Planning Pty Ltd

Revised in 2023

www.yourbestlifethebook.com.au

Copyright © 2020 Helen Nan

All rights reserved. Except as permitted under the Australian Copyright Act 1968, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission. All enquiries should be made to the author.

Author: Helen Nan

Title: Your Best Life: How to achieve financial freedom with the guidance of a financial adviser

PRINT ISBN: 9780648770138

EPUB ISBN: 9780648770145

KDP ISBN: 9780648770152

Subjects: Personal Finance, Financial Planning

Book production: www.smartwomenpublish.com

Cover photo: Helen Nan

Original photography: Jason Malouin

General Advice Warning

This book contains general financial advice. It does not take your financial circumstances, needs or objectives into account. You should therefore consider the appropriateness of the advice for your situation before acting on it. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this publication. You should also be aware that past performance is not a reliable indicator of future performance.

Disclaimer

Whilst all care has been taken in the preparation of this material, it is based on the author’s understanding of current regulatory requirements and laws at the time of writing this book (January 2023) or as otherwise referenced. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information.

As at 29 January 2023, Helen (Meihua) Nan is an Authorised Representative (No.1002520) of Plan for Your Future Pty Ltd, a Corporate Authorised Representative (No.1280880) of Alliance Wealth Pty Ltd, holder of an Australian Financial Services Licence (AFSL No. 449221). www.centrepointalliance.com.au/AW

To the extent permitted by law, neither Helen (Meihua) Nan, Plan for Your Future Pty Ltd, Alliance Wealth Pty Ltd nor its related entities or employees accepts responsibility for any loss suffered by any person arising from reliance on the information in this book.

What’s inside this book?

PREFACE

This book is different from other finance books. You will learn financial planning frameworks and strategies from a couple’s story of getting off the earning-spending treadmill, achieving financial freedom, and living their dream.

CHAPTER 1: WHERE HAVE YOU BEEN?

At Richard and Lisa’s first meeting with Mia, their new financial adviser, they discover their money blueprint and personality, which shape their current reality. Understanding that your attitude towards money and the environment you grew up in influence your financial future, provides a good starting point for planning your financial journey.

CHAPTER 2: WHERE ARE YOU NOW?

Your net savings and net worth define where you stand today financially. Have you ever asked yourself why you are on an earning–spending treadmill? You will find the answers and possible solutions in this chapter.

CHAPTER 3: WHAT DO YOU WANT IN YOUR LIFE?

The five goal-setting steps in this chapter help you to look into your heart to discover your real desires and dreams. Once you have an emotional connection with your goals, you become committed to starting to design your ideal life.

CHAPTER 4: HOW TO PROTECT YOUR WEALTH

Financial planning is based on the assumption of earning an income on an ongoing basis. Protecting your income from unforeseen events such as illness, injury, and even death, is the foundation of securing your financial future. In this chapter, you will learn how to build adequate protection that navigates the storms in your life.

CHAPTER 5: HOW TO BUILD WEALTH

Investment is a combination of art and science. This chapter introduces how to build a money-making machine to achieve financial freedom, and reveals tips to manage different investment risks. Building wealth is not as complicated as you think. It’s simple, but it is not necessarily easy if you don’t apply the basics.

CHAPTER 6: ONE SIZE DOESN’T FIT ALL

Investing with borrowed money multiplies the returns, but it also magnifies the risks. Carefully assess if it is the right strategy for you before you invest with borrowed money, and prepare exit strategies for the worst-case scenario. This chapter also tells us why it is essential for women to plan their finance independently, and how they can do that.

CHAPTER 7: YOUR BEST RETIREMENT

A comfortable retirement is one of the biggest financial goals for most Australians. How much do you need to have a comfortable retirement and how do you manage the different risk factors at retirement to make money last? This chapter covers what action you need to take to prepare for retirement and on to the stage where you need aged care (for yourself or your family).

CHAPTER 8: THE ONGOING JOURNEY

Execution is the key to your financial success, and a good plan requires consistent action toward your goals. Life transitions can be intimidating and unexpected. This chapter shows you how a financial adviser keeps you on track and accountable, and helps you prepare for the worst, so you can adapt to new ways of living quickly.

CHAPTER 9: ESTATE PLANNING

Leaving a legacy means not only passing on your assets but also passing down your values and stories to your loved ones. This chapter shows you the different arrangements you need to make to reflect your core values and ensure your final intentions.

CHAPTER 10: ADVICE PROCESSES AND THE VALUE OF ADVICE

This chapter explains how you can get the most out of your journey with a trusted adviser, using the adviser’s expertise and skills to help you design your dream life. It is difficult to understand the value of advice until you experience it.

CHAPTER 11: PLANNING TO LIVE THE DREAM

Financial confusion is one of the most significant blocks to living life on your own terms. This chapter shows you how Richard and Lisa eventually achieve the freedom they crave, as well as the steps to take to design your dream life.

EPILOGUE

I explain why I wrote this book and what drives me as an adviser—ensuring my clients’ best possible life. I too have the same desire.

REFERENCE LIST

BIBLIOGRAPHY

LIST OF FIGURES

LIST OF TABLES

LIST OF ABBREVIATIONS

Preface

It was 9 May 2011, a rainy day, when I started my new job as a financial adviser at one of Australia’s largest financial institutions. I remember seeing the raindrops on the window and feeling thrilled with joy and passion. ‘This is life-changing’, I told myself—and it was.

I was born in China. My parents are educated professionals, but financial literacy just wasn’t part of their curricula. Throughout their working life they acquired liabilities they thought were assets, and constantly struggled on the earning/spending treadmill. Of course, they didn’t have any financial plan and spent most of their money on their lifestyle and their children’s education. They sent me to finish my studies in Australia, and expected me to study hard, get a degree then a secure job, as most Asian parents hope for their children.

After I moved to Australia, I stayed with my student homestay mum for years. At that time she was in her sixties, and I well remember her financial plan. Every Saturday evening, she poured herself a glass of wine and waited for her Gold Lotto number to be called on TV, dreaming about how she would spend the winnings. She often said, ‘If I won a big lotto, I would buy a unit for you in Brisbane’. That never happened, but she won a small prize occasionally, just enough to encourage her to keep buying more tickets.

These are the main money messages I learned from both my Chinese parents and my Aussie mum. When I was studying at university, I read Robert Kiyosaki’s book, ‘Rich Dad, Poor Dad’. This book opened my eyes to the world of wealth, and I bought his complete series to learn more about money management. Soon after I read those books, I started investing. After a few failed attempts, I realised that reading a few self-help finance books may not be sufficient to make me a successful investor. Hence, I looked for a career in the financial industry.

In 2011, the National Australia Bank wealth consultant program opened the door for my ambition to be realised, and I started my financial planning career at the bank. I had my ups and downs, but I enjoyed my job because I believed that I was improving lives. Since then, I’ve been growing, not only as a professional but as a person, because of this job.

In 2018, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry created a perfect storm in the industry, and the profession headed into the next stage of its evolution. The largest wealth companies in Australia shrank and reshaped their advice businesses, and many advisers were seriously considering exit strategies for themselves.

I asked myself many questions at that time too: Where do I stand in my career? What do financial planning clients really want? How can I fulfill my dreams while helping my clients accomplish theirs? Many sleepless nights subsequently ensued. Finally, I left the bank and started my own business at the beginning of 2020 to help my clients on my own terms.

Soon after I started my own financial planning firm, I faced one of the biggest obstacles in my life; one that I never thought to prepare for. No other event in recent history has impacted the whole world as profoundly as the COVID-19 pandemic did. When I navigated my own entrepreneurial journey during the pandemic, I saw some people were able to rely on their own resources to comfortably get by, while others struggled because of their loss of income.

As a consequence, I became even more determined to help empower and educate others with the knowledge and skills that I have learned along the way, as most people, like me, don’t grow up with an easy-access ‘how-to’ money manual.

Money management is confusing; planning your own finances can be hard; and many people don’t know where or how to start. I don’t want others to make the same mistakes I made in the past as an inexperienced investor, paying a high price for financial ignorance.

In this book, I’ve incorporated a financial planning framework and strategies into the story of a couple most of us can relate to. Richard and Lisa are both educated, sophisticated, and smart in many aspects of their lives—but not with money. They are ready to escape a rat-race style of life, and want to seek a life of freedom and abundance. The story tells us how they work with a trusted adviser to design their own future and achieve financial freedom so they can live life on their terms.

Most people don’t know what to expect or how to work with financial professionals. This book will offer you guidance and direction by answering these five crucial questions:

What can financial advisers do for me that I can’t do for myself? It is often said that doctors make bad patients because they believe they have the knowledge to treat themselves. Like these doctors, do-it-yourself investors or certain professionals who believe they possess extensive experience in investment and finance may think they know better than everyone else. The truth is, we don’t know what we don’t know.

Where do I start? This is a common question for anyone who wishes to take action and improve their finances. This book introduces you to the process of defining where you are now and what you want in your life, as well as the strategies needed to get there.

When is the right time to see a financial adviser? Now, or before retirement? Most Australians associate financial planning with retirement. However, you can start planning your finances in your 20s, 30s, 40s and 50s, to lead into your early retirement or financial freedom. The earlier you start, the better the outcome.

How do I achieve financial freedom and live the life of my dreams? If you want to be financially free, you must acquire income-producing assets instead of spending all your income on your lifestyle. When passive income from these assets exceeds your expenses, you will no longer rely on your earnings from your job or business, and you will be financially free to live the life of your dreams.

Can I find the balance between money and happiness? Before you decide to make lots of money, you’d better know what brings you true happiness, fulfillment and joy. I call it the meaning of money. When you make money to enhance that meaning, you will maximise the benefits of money and live your life fully and happily.

The financial industry in Australia has been undergoing incredible change and disruption in the last decade. The need for a more client-centric approach to the financial-advice process has been highlighted. Trust is crucial in a long-term relationship in which an adviser asks a family to place their financial future in his or her hands. Clients trust their adviser not because they fully understand what they do, but because they know their adviser understands them.

When clients begin to share their hopes, dreams, and even fears, advisers can help give them a new perspective, turn their desires into numbers and present them with a course of action that inspires them. People working with financial advisers can feel more confident about their future, as there is someone to help them define their goals and dreams, help them avoid costly mistakes, and go through difficult times with them.

Some people may believe that creating a financial plan and seeing it through requires many sacrifices. But, realistically, it’s energising and empowering because you are focusing on designing your own future without leaving everything to chance. No matter where you start, you are taking real steps closer to the best life that you desire!

Chapter 1

Where Have You Been?

War historians often say that battles are not won and lost in the field, but behind closed doors—in the planning. Life is sometimes like a battle: it has its ups and downs and is directly and indirectly affected by money. Planning your finances becomes inevitable, as it is essentially the planning of a well-lived life. You may ask yourself, ‘Am I doing everything I can to get ahead financially?’

Richard found himself asking this question a few times recently. Richard and Lisa were a married couple with two children, aged six and eight. They