Financial Advisory 101 - Understanding Wealth Management
Understanding how to manage and grow your wealth in a world filled with competing financial priorities is more important than ever. Whether you're just starting your career, growing a business, or planning for retirement, building a financial strategy tailored to your goals can set the foundation for long-term security and peace of mind.
Financial advisory isn’t just about numbers—it’s about aligning your resources with your values, lifestyle, and aspirations. With a background in both accounting and financial planning, David Posterino, Managing Director of AS Wealth Advisors, breaks down the fundamentals of wealth management into clear, actionable steps that help Australians make informed decisions about their money.
What Is Financial Advisory?
Financial planning is about more than investments—it's about helping people map out their life goals and giving them the tools and guidance to achieve them.
“We're like personal trainers for your finances,” David explains. “You might have goals, but without a plan, distractions and poor habits get in the way.” A good financial advisor helps clients stay accountable, educates them on their options, and makes adjustments as life changes.
Core Areas of Financial Advice
At AS Wealth Advisors, David and his team focus on several key areas:
Cash Flow Planning: Understanding income and expenses to set up a realistic and sustainable budget.
Investment Management: Building diversified portfolios tailored to each client's risk tolerance and timeline.
Superannuation Strategy: Ensuring superannuation is aligned with retirement goals and tax-efficient.
Personal Insurance: Protecting wealth and lifestyle through income protection, trauma cover, life, and total permanent disability insurance.
Estate Planning: Preparing for the future through thoughtful succession and legacy planning.
Why Insurance Matters—A Real Client Story
David shares a sobering yet powerful example from his own client work: A couple came in to review their financial position and discuss buying a rental property. David noticed they had a young family but no insurance. He recommended a comprehensive plan, including income protection and trauma cover. A year later, the husband was diagnosed with terminal cancer. Thanks to the plan David put in place, the family received timely payouts that cleared their mortgage and ensured long-term financial stability.
“Insurance is the safety net that allows your financial plan to keep going when life doesn’t go as planned. It’s boring—until it’s not.” - David Posterino , AS Wealth Advisors
While insurance isn’t always the most exciting topic, David argues it's one of the most important.
Investment Philosophy: The Bucket Approach
When it comes to investments, David takes a “bucket” approach based on time horizons:
Short-Term Bucket (0–12 months): Cash reserves for immediate needs, such as pension payments or emergencies.
Medium-Term Bucket (2–5 years): Fixed interest or term deposits for income generation.
Long-Term Bucket (5–10+ years): Growth assets like shares and property to build long-term wealth.
This method not only diversifies risk but also helps clients ride out market volatility without panic.
FAQs: What Clients Ask Most
David regularly answers a few recurring questions from clients:
What return can I get? - “That depends entirely on your risk profile,” he says. “Higher risk may yield higher returns—but also more volatility.”
Why are my insurance premiums rising? - As we age, premiums naturally increase. The key is reviewing your policy regularly to balance cost and coverage.
Do insurers actually pay out? - “Yes, as long as you’ve been honest from the start. The main reason claims are denied is due to nondisclosure.”
Financial Advice Isn’t Just for the Wealthy
A common misconception is that financial advice is only for high-net-worth individuals. David disagrees.
“It’s about getting the right guidance for your circumstances. Even younger clients or families just starting out can benefit from structured planning, protection, and education,” he explains. And while the Royal Commission has made the industry more regulated (and, in some cases, more expensive), the value delivered—especially over time—far outweighs the cost.
The AS Wealth Advisors & Alexander Spencer Partnership
By working closely with Alexander Spencer, one of Melbourne’s leading accounting firms, AS Wealth Advisors provides integrated, seamless support for clients.
“Accountants are usually the most trusted advisors,” David notes. “So having financial advisory under the same roof allows us to collaborate better, act quickly, and deliver holistic solutions for clients’ personal and business finances.”
Financial planning is not just about numbers—it's about people. It's about helping individuals and families live with more clarity, confidence, and control over their financial future.
Whether you're nearing retirement, building a family, or starting your first job, now is the time to take your financial health seriously. With the right advice and a plan tailored to your goals, the future becomes less uncertain—and far more promising.
Interested in learning more about financial advisory?
Visit www.aswealthadvisors.com.au or book a meeting with the team at AS Wealth Advisors to start your journey.