Our different approach to financial planning
We often get asked what makes our financial planning different from other advisors. It’s good question, as it continually challenges us to improve the way we provide financial advice.
When we started as Melbourne financial advisors over 10 years ago, our aim was to prove that there was a better way to deliver financial planning advice. A way that everyone benefits – our clients, our Tribe and our business – without compromising what is right.
It’s what continues to drive our purpose and shape the financial services, specialist knowledge, techniques and tools we use to provide our clients with holistic financial planning and advice.
Gone are the days (we hope) where financial advice is hastily given out through the lens of a spreadsheet of demographic filters, where product takes precedence and the client is treated like a number. The best financial planners will see you for who you truly are as a person, and want to get to know the real you. That’s our approach at Tribeca. To deeply understand what motivates you so we can accurately plan for what your future needs will be, providing you with highly personalised financial advice that works in tandem with your lifestyle.
In this way, your financial plan is geared towards what makes you happy and what you care about, so that you can reach your goals whilst still allowing you to live life the way you choose. A good financial plan shouldn’t get in the way of life – it should embrace it.
From setting up a nest egg for your family to quitting your job to travel around the world and everything in between, we understand that no two people are the same. It’s why we’ve adopted a range of financial planning tools that help us tailor a plan to suit your specific needs and financial objectives, and give you the confidence and assistance to keep you on track with your goals.
So here’s our top financial planning tools we use to help you live your Good Life.
Financial Wellbeing Matrix
How do you feel about your finances, and what would your answers be to the following questions?
- Do you know your assets and liability position?
- Do you feel you’re in control of your finances, or they are in control of you?
- Do you have a nest egg?
- Do you have a cash buffer for unexpected costs?
- What’s your back up plan?
- Do you have your estate planning and the right insurances in place?
- Can you spend money on what you want, rather than what you need?
- Where do you want to get to with your financial future?
- Are you going to be able to retire when you want to?
How did you go? What rating of comfort would you give yourself out of 10?
Many people worry about money more than their own health. It’s why finances and wellbeing are intrinsically linked. An unhelpful financial situation can have a negative impact on our mental health. Conversely, mental health struggles can result in neglecting our finances altogether. Being aware and open to the fact that both are connected is incredibly important.
Our advice embraces financial wellbeing for this very reason. The more we work on building a healthy relationship with our finances, and understand how we can mindfully spend and save your money, the better our overall state-of-mind will be.
A healthy level of financial wellbeing results in two very strong emotional responses:
By feeling financially secure, it allows you to enjoy the genuine freedom of making choices you want to make
– not have to make.
To help you identify and enhance your level of financial wellbeing we developed our Financial Wellbeing Matrix.
As you can see, Security relates to your feelings towards control over your finances (now), and capacity to absorb a financial shock (in the future).
For Freedom of Choice, that looks at your financial freedom to make choices (today), and whether you feel you’re on track to meet your goals (for tomorrow).
So from a financial planning point of view, here’s what we typically look at in each section:
Control over your finances
How do you feel about cashflow and your financial situation? We’ll help you form healthy money habits so you’re very clear on where your money goes each month and, more importantly, what is realistic for your cashflow and spending if your income has been impacted.
Capacity to absorb a financial shock
Would you be OK if you suffered a major jolt to your finances? Now more than ever is a good time to review aspects such as insurances, estate planning and emergency funds so that you’re financially prepared for the unexpected – whatever that might look like.
Financial freedom to make choices to enjoy life
Have you thought about what financial freedom means to you? It could be practical goals like wanting to retire early, to just having the feeling of not worrying about money or any financial planning issues. We’ll help you identify what freedoms and choices are important to you.
On track to meet your goals
Do you know what your goals are? We’ll help you set, or reset, your goals based on what’s important to you. We’ll then map out what this looks like in ten years, three years and now – and work out a financial plan to get you there.
Talking through these questions and getting you to rate your feelings out of ten gives us a starting point for identifying what we need to focus on with our financial advice. It also allows us to dig a bit deeper into the reasons behind your answers. And work out ways to move a five out of ten rating to a six today, and then a six out of ten to a seven in twelve months time, and maybe a seven out of ten to an eight or nine in the next few years.
Would you like your workplace to be more focused on financial wellbeing? We can help with our Financial Wellbeing Program.
10-3-Now: your Good Life Map
What does your Good Life look like?
It’s a pretty big question, but one that’s critical to how we can help you plan out your whole financial life and future. Right from our first meeting as your financial planner, we want to get to know who you are and what’s important to you. Then we can map out your goals.
Our starting point is to go over your ‘Five L’s’ – Life, Love, Learn, Laugh and Legacy – which helps us identify what you deem important in life to shape our financial services and advice.
Once we have a clear idea of your Good Life, we’ll map out a 10-3-Now.
This fun financial planning exercise looks at where you want to be in ten years, then we work backwards to show what life will look like in three years and finally, the changes we’ll have to make now to get there.
All of this is created with your goals in mind. Through tailoring our financial planning to suit your specific needs we can help you reach the goals you have for your future, whilst still giving you the freedom to enjoy your Good Life today.
Want a Tribeca financial planner to take you through our 10-3-Now process? Click here.
Now that we’re clear on your goals, how can you be confident that the steps we’re asking you to take as your financial planner will help you achieve them?
CALM charts play a pivotal role in answering this question.
Just like its name, CALM charts are a great way to ease your mind through modelling your cashflow, assets and liabilities over time. Shown in an easy-to-read graph, they are a proven way of planning out different scenarios based on expected and unexpected events, taking the guess work out of the equation. This gives you greater confidence in our financial advice, and clarity on what needs to be adjusted or put in place to achieve your goals.
That could be through showing you are already on the right track to building your net assets and here’s the steps you can take to improve that even further. Or if you need to make changes moving forward to achieve your goals, the modelling can help in strengthening your resolve and confidence knowing that if you make those adjustments you can achieve your desired outcomes.
The modelling allows for general considerations such as CPI increases, industry legislation and predicted investment returns (based on historical returns), as well as specific life events such as education, weddings, holidays and early retirement to create multiple real-life scenarios.
Very simply, you can get a clear picture of what your financial life looks like depending on the decisions you make now and in the years to come.
Whether used in helping create your initial roadmap, to stay on course along the journey, or to adjust for new scenarios; CALM charts are a powerful tool for reinforcing the depth and quality of our financial services and advice.
Learn more about how CALM charts work from a Tribeca financial planner?
Wheel of Life Tool
A big part of our financial planning is looking at how we can help when your life is out of balance. And steer you towards achieving that sense of financial wellbeing and wellness.
To help identify the areas you/we need to work on, we sometimes use our Wheel of Life Tool in our financial planning. Here’s what a completed wheel may look like:
The tool offers a birds-eye view of your life at any one time. The ‘spokes’ represent the key facets of your life, from health and having fun to finances and career.
The purpose of the Wheel of Life exercise is to make sure your wheel, the whole of your life, is balanced with all aspects or needs fulfilled in the right way. As your financial planner, it’s a great tool for understanding what is truly important to you, and how your finances can enhance – not hinder – your goals and aspirations.
Read more about how our Wheel of Life tool can play a part in uncovering your level of financial wellbeing.
Keeping on top of your finances is not easy. It’s why we created our Tribeca Tracker so you can have a user friendly digital tool that literally brings every part of your financial world together in the one place.
Available as an app or desktop version, Tribeca Tracker is incredibly easy and intuitive to use, with the software doing all the hard work. By simply providing the access, all your credit cards, bank accounts, property, car, home loan, investments and more are added at the touch of a button so they can be easily tracked and managed.
For cashflow and budgeting, every entry is auto-categorised so you can quickly track transactions and get the full picture of your income and expenses in real-time – and work towards achieving those financial goals.
It also makes tax time a lot easier, with a number of specially built tax tools designed to track, tag and store relevant tax information (from transactions to receipts) securely online.
You can even sign your important documents electronically, on desktop or through the mobile app, and then store all those documents in the Tracker for easy access. No more paper, clutter and frustration trying to find that Super form, tax statement, Will or retirement plan.
From a security point of view, Tribeca Tracker has a range of failsafe protocols in place. It uses the same 256-bit encryption that banks use to protect your private details. And like banks, it has a layered security infrastructure with checkpoints throughout to minimise risks.
As a read-only service designed to help organise and analyse finances, the Tracker cannot be used to move or modify funds. The data is also protected with a host of design and security features from industry-leading platforms like Amazon Web Services, Yodlee, and OneSpan.
Finally, the Tracker uses benchmark multi-factor authentication, adding a layered authentication process to provide added peace of mind that no one else can access.
It’s easily one of our most effective financial advice tools for staying in control of your finances and cashflow.
Find out more about our Tribeca Tracker.
Cashflow Coaching Tools
It’s likely the majority of professional financial planners will tell you that controlling cashflow is the area of financial advice that clients require the most help with. It’s so important to manage, but can be very difficult to master.
Cashflow coaching is certainly a priority at Tribeca.
There’s many ways to tackle saving and cashflow. The key is adopting a method that works for you and you can stick to. For some people this might be using an offset account to build up savings. Others might prefer having an account they can’t access online to limit the temptation of dipping into it. Or it could be creating an investment portfolio where a monthly amount is automatically deposited so it builds up over time.
That’s why having a financial planner and coach to guide, set up a structure and keep you accountable and on track to reach your goals can be a great ally. The other major benefit of having a financial planner by your side is they can help you in times of instability to adjust and create a new plan to react to unforeseen circumstances.
Cashflow planning and saving all gets back to working out what’s really important to you, creating an achievable plan to reach that goal, and then sticking to that financial plan without getting distracted along the way.
The sooner you start, the greater the benefit you’ll see from building up that cashflow to both secure your future and take advantage of opportunities. Things like benefiting from investment markets, where the build up of compound interest over time can make a massive difference to your financial future.
It’s far better to have a surplus building up over 30 or 40 years rather than just forcing yourself to create a surplus later in life at a time when you need to start saving for retirement. Considering many people don’t know what they’re spending, and therefore how much they’ll need to retire on, getting a handle on your cashflow as early as you can is so critical to your financial wellbeing.
Advisor Mariana Subasic talks about her
top 3 cashflow tips
Ask the Experts eBook
We believe one of the best ways to improve our life, whether that’s at home or work, is to continue to grow and learn. We’re lucky that our clients share that same belief, which is why we created our Ask the Experts eBook to support our financial planning advice.
Our eBook is a collection of conversations we’ve had with our Tribe to explore topics
our clients have told us are important to them, especially in light of COVID. This ranges from financial wellbeing and its strong connection to our mental health; through to top-of-mind subjects around superannuation, cashflow coaching, lending, career transitioning and impacts of a recession.
If you would like to learn more about our full list of financial planning services and helpful tools, we’re always ready to chat. Please talk to your financial planner or arrange an appointment with one of our Tribeca Tribe here.