KEY POINTS:
Name: Sue Price.
Age: 50.
Role: Westpac wealth adviser, based in Whangarei, covers Northland.
Working hours: 45 to 50 hours a week.
Salary range: From $65K.
Qualifications: Graduate diploma in business studies, majoring in personal finance planning. Awarded Westpac's Financial Planner of the Year in 2005.
Describe what you do.
I
provide financial advice to individuals, trusts and companies to assist them to achieve their goals.
Most of my clients are between 50 and 70. A lot of people up to the age of 50 still have debt of some sort and we advise people to pay that off first.
Then, at 50, they start thinking about retirement. Are they on track? People have huge expectations of what their retirement looks like but they haven't actually sat down and worked out what they need to earn now to meet that goal.
We don't want grumpy old people at 65 who blame the Government for everything whereas they could have done some planning themselves to achieve what they want.
Your work history?
I have been with Westpac for 30 years. I have worked in branches, head office and in senior management positions. Then I got the opportunity to come back to Whangarei to do this.
My husband has followed me around; he has been a house husband while I have had the career.
My children have both left home and now live in Hamilton.
What is the minimum amount needed? And what do you charge?
For me, it's around the $100,000 mark but there is flexibility.
The first visit is free; it's just having a chat to see if they want to do a financial plan. The plan costs $300 plus GST and a lot of work goes into it.
If they wish to proceed with the recommendations, there may be a fee to go into a particular investment.
I am on a salary but I have opportunities to get a bonus, measured on a combination of sales total, customer satisfaction and compliance.
How do you gauge what sort of portfolio people need?
The first interview is about establishing a rapport. Often it's their life savings and they need to feel that they can trust you and the organisation.
We do a wealth-needs analysis to work out goals - short term, medium and long term. We also do some calculations on them living to 90 because the last thing you want to do is run out of money at 80.
It's not only about Westpac products. Diversified portfolios are about a spread of your investment. For retired people, that's a portfolio that provides some income and some growth.
Are people more wary because of the finance company collapses?
A lot of people have been shaken by events and are thinking about how they feel about risk now.
How does people's wealth come to them?
Through long-term savings or they might sell investment properties if they want to free up cash. Inheritances, selling a business and retiring.
Does age affect their perspective on risk-taking?
Chances are that when you are retired and this is your life savings, you haven't got the ability to earn it again.
I ask a lot of questions and usually the surprise is that they want to take more risk than the conversation determined.
And then you get someone like my daughter, who is 25 and doesn't want to take any risks with her money and then she goes to Queenstown and jumps out of an aeroplane skydiving.
Everyone is different. If they don't take enough risks, then they're not happy with the returns. If they take too much risk, then they can't cope with the market when it goes down.
Has KiwiSaver impacted on your work?
It's been great. I've been doing presentations to companies and have signed up a fair few people to KiwiSaver, particularly people aged over 60. When I joined the bank it was compulsory to join the super scheme and I have never regretted it.
What skills do you need?
Being older helps. I have had a life and struggled financially when the kids were young. The key skills are the ability to ask the right questions, to listen and pick up on cues or body language.
Most rewarding part of the job?
Helping people understand the importance of financial planning. People have the vision but they haven't worked out the figures.
What will you be doing in five years?
Exactly the same. There is still so much to learn. I love the people I deal with. I say to them: "When you go into a retirement home I'm still going to be looking after you."
Advice to someone wanting to do same thing?
Do the study required to learn the theory behind investments. Always ensure that the clients' interests are at the forefront.
