Page 11 - FWP Wealth Adviser Newsletter - February 2025

ISSUE 105
FEBRUARY 2025
Ask a faster than expected. Instead of making decisions based on

short-term concerns, it’s important to ensure your invest-
Q&A: Question ment strategy aligns with your long-term financial goals and
risk tolerance. Diversification and a disciplined approach to
investing can help manage volatility and uncertainty.
Question 1: If you are concerned about how AI developments may
What happens if I get sick and don’t have an enduring impact your portfolio, your financial adviser can help you
power of attorney? assess your investments and determine an appropriate
If you become seriously ill or lose the capacity to make strategy based on your circumstances.
decisions without an enduring power of attorney (EPOA)
in place, your loved ones may face significant difficulties Question 3:
in managing your financial and personal affairs. Without I have read articles about an industry super delaying
an EPOA, no one has the legal right to act on your behalf, insurance claims and financial hardship, and I’m wondering
meaning they may need to apply to a court or tribunal to if I should change my insurance to ensure better certainty if
be appointed as your financial manager / administrator. I have to make a claim?
This process can be time-consuming, stressful, and costly, It’s understandable to be concerned about claim delays,
and there is no guarantee that the appointed person will be as insurance is meant to provide financial security during
the one you would have chosen yourself. In the meantime, difficult times. Before making any changes, it’s important
important financial matters such as paying bills, managing to understand the differences between insurance policies.
investments, or handling property transactions may be left Many superannuation funds offer group insurance, which
unresolved. Putting an EPOA in place ensures that someone can be cost-effective but often comes with stricter defini-
you trust can act in your best interests if you are unable to tions, automatic exclusions, and less flexibility in claims
do so. assessment. In contrast, retail insurance, which can be
You should consult your financial adviser and an estate obtained through an adviser, typically undergoes full med-
planning professional to ensure you have the appropriate ical underwriting at the time of application. This process
arrangements in place. provides greater certainty at claim time, as the insurer has
already assessed your health and agreed to cover you based
Question 2: on your circumstances. While retail insurance may have
I heard from a friend that the release of new Deep-Seek AI higher premiums, it generally offers more comprehensive
technology is expected to cause market crashes. Should I coverage and stronger guarantees around policy terms.
sell any of my shares and ETFs related to this? Before deciding to change your insurance, reviewing your
Market movements are influenced by many factors, and existing policy and comparing it with alternatives is essen-
while technological advancements like AI can create volatili- tial to ensure it aligns with your needs.
ty, they are also key drivers of long-term growth and inno- Your financial adviser can help you assess your options
vation. Making investment decisions based on short-term and determine the most suitable cover for your situation.
predictions or speculation can be risky, as even professional
investors struggle to time the market accurately. Selling
shares in response to market fear may lead to missing po- If you have a question that you would like to see answered in Wealth Adviser, please
tential rebounds, as markets often recover from downturns send it through to centraladvice@wtfglimited.com.

Future Wealth Planners

Level 1, 176 Main Street
Osborne Park WA 6017

P.O. Box 16
Osborne Park WA 6917

P: 08 9207 3844
W: www.fwplanners.com.au
E: clientservices@fwplanners.com.au

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