True Wealth Investment’s digital approach to superannuation and insurance allows workers in remote regions to restructure their investment portfolios without leaving site.
With the demands of fly-in, fly-out (FIFO) rosters, many mine workers in Australia spend weeks to months away from home at a time.
Interstate border closures due to COVID-19 restrictions have also increased the periods workers have been forced to spend away at work over the past 18 months.
This has created challenges for them to maintain their personal and family goals, including the time they need to set up financial plans.
When the average Australian retires in their 60s, their superannuation is what they will then rely on to fund their twilight years.
Yet a 40-year career can convolute this process, with different superannuation funds accumulating as workers switch between jobs.
To combat this issue, financial planning groups that require in-office consultations are often regarded as the solution.
However, for young mine workers needing to organise their super, finding time outside of their FIFO roster to schedule a consultation can be difficult.
Financial planning group True Wealth has developed a method to assist miners to organise their super, alleviating this challenge for many workers in the industry.
In 2018, the company was built from the ground up as a digitally focussed organisation that primarily conducts client meetings by phone or webcam.
This opened the door for Australians across the country to access True Wealth’s superannuation and insurance services, even at remote mine sites.
True Wealth allows its clients to achieve financial goals by creating a superannuation and insurance policy that fits their individual requirements.
“What we strive to do is provide an over the phone and simple service fully transparent and at the same time efficient,” True Wealth director Alexander McWilliams Australian Resources & Investment. “People don’t have spare time these days – everyone has busy lifestyles.
“In our business model we don’t focus on face-to-face meetings with clients as we have a nationwide client base. We are using the best technology out there at the moment to provide a fully traditional service in a more streamlined and simplified way.”
True Wealth’s digital focus has allowed the company to provide its services throughout the COVID-19 pandemic, preventing any impact to how it deals with clients across Australia.
The company’s system enables it to reach workers located outside of capital cities, helping them to get their superannuation on track through a phone call.
True Wealth can conduct research for its clients to build a plan and strategy to achieve long-term financial goals with their superannuation and insurance policies.
“It means consolidating the funds to one account, identifying a client’s risk profile and then tailoring an insurance policy to their needs,” McWilliams says.
“We help manage it for them ongoing, so they’ve always got us keeping an eye on it.”
According to the ABS, Australia’s mining industry employs around 278,800 people, who earn a median weekly wage of approximately $2325 per week, making it vital for them to set aside enough funds for their future with the right superannuation investments.
Having multiple funds remains a common issue for mine workers, however, with many losing money by paying multiple platform fees.
This often results in the account holders losing track of where their money is going and what it is being invested into through superfunds.
McWilliams says many people do not have a strong understanding of the total amount of capital in their superannuation.
“There’s more than 500 superfunds to choose from, so some funds are going to be better than others and that’s essentially something they don’t know,” McWilliams says.
“They don’t know the risks they’re taking with those investments, the insurance they’re covered for or their investment returns.”
Operating on a case-by-case basis, True Wealth can build an investment portfolio through a superfund that caters to client objectives.
For instance, younger workers may opt to take higher risk investments, while workers closer to the retirement age would take a more moderate or conservative approach.
True Wealth Investment’s digital focus also allows the company to direct more availability to its client base, which mostly comprises blue-collar workers.
“In terms of services, we offer a typical financial planning offering but it’s how we execute it that separates us. We always have people that can offer assistance at any time during business hours,” McWilliams says.
“Understanding financial talk you might be very overwhelmed, we know how to break that down in the simplest terms so anyone can understand and it make sense.”
Rather than scheduling in-office appointments, True Wealth’s over-the-phone services allows its consultants to easily conduct advisory work related to super or insurance policies, including life insurance, total and permanent disability, trauma and income protection.
Updates or changes to accounts can then be completed in a shorter timeframe, allowing mine workers to focus on their job rather than organising appointments for where to invest their super.
True Wealth assisted one client who had six super funds and three active insurance policies scattered across multiple accounts.
By conducting a free lost super check, McWilliams says True Wealth organised the super accounts and tracked down lost capital through superannuation accounts.
“We were able to educate the client on their circumstances and identified they had three different life insurance policies held across three of their superfunds,” he says.
“We educated them about how they were paying unnecessary fees for expensive and outdated platforms and investment options that weren’t catering to their goals and objectives.
“We were able to come in and recommend consolidating the funds and set up one tailored insurance policy so that the client had a portfolio that matched their needs, putting them into a portfolio that matched their tolerance to risk.”
As the world faces unprecedented economic volatility, people must ensure that their financial future is secured.
True Wealth’s digital-only approach provides access to services that allow everyday Australians to achieve their financial goals.
This story also appears in the October issue of Australian Resources & Investment.