THE PLANNER
Daryl Forge
Financial Adviser – JDFA Business & Financial Advisers Brighton, Vic
Forge established JDFA three years ago, together with tax specialist and partner Jennifer. Between the two of them they provide holistic financial planning services for predominantly mid- to high-net-worth Melbourne-based (and some interstate) clients. A qualified chartered accountant, prior to becoming a financial planner Forge spent nearly 20 years in the stockbroking industry, with the last three spent running NAB’s online stockbroking division. His partner, Jennifer, has been in public practice as a Certified Practising Accountant (CPA), specialising in tax advice, since 2000, and also has a Diploma of Financial Planning.
Advice Structure
Having been mindful of pending regulatory changes and their impact on future commission structures, Forge established the business under a fee-for-service model from day one. Charges are based on funds under advice, the complexity involved in developing and maintaining a client’s wealth creation strategy, and the underlying risk.
History
Patty Knight initially crossed paths with Daryl and Jennifer Forge three years ago, following a referral from a neighbour who had been utilising their tax services. Knight’s initial contact with the Forges followed two previous, equally destructive stints with financial advisers. Given the net loss position they’d collectively left her in, Knight’s faith in financial advisers had fallen to an all-time low.
Strategy
Knight had been left severely out of pocket, due to some inappropriate financial advice provided by two former advisers. The anomalies associated with some unexpected PAYG tax issues – the initial reason for her contact with Forge – prompted Forge to question her prevailing investment strategy. Following an initial review, Forge discovered that the SMSF foundation on which Knight’s portfolio had been constructed was not only costly, ill conceived, and unlikely to ever deliver stated returns – it forced her into investment and governance decisions she was not qualified to make.
The SMSF needed to be wound up before a new wealth creation strategy could be developed and implemented. The first step to unravelling her problems was to deal with a totally unexpected and hefty tax bill that was causing her sleepless nights.
Financial summary
Assets Nov 2007 Nov 2010
Cash $30,000 $30,000
Geared Share Portfolio $34,000 $97,000 (net of debt)
Residential Property $1.1M $1.4M
Investment Property $150,000 $230,000 (net of debt)
Pension Fund $267,000 $295,000
Super Fund $49,000 $115,000
Total $1.630M $2.167M
