Financial planners are a waste of money, and time
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Most do not recommend individual stocks. They're covered by insurers and their insurers give them a list of funds they can choose from.
So even if there's a fund they know of which is great, if it ain't on the list they wont tell you about it.
Kinda pathetic industry really. Rated slightly below used car salesmen.
Having said that, there are a few out there who actually know what they're doing. Scott's sounds great, and I'm working with one at the moment who is very switched on.
So even if there's a fund they know of which is great, if it ain't on the list they wont tell you about it.
Kinda pathetic industry really. Rated slightly below used car salesmen.
Having said that, there are a few out there who actually know what they're doing. Scott's sounds great, and I'm working with one at the moment who is very switched on.
There's some things in life you don't want to get second best advice on- brain surgery, leg amputation, protecting your capital.
I cycle with three guys (an ex trade commissioner, a CFO, and an ex wing commander with the RAAF)......
They have all been adversely effected by the advice of FAs.
The damage these guys do is lull you into false sense of security, having you believe they understand and implement risk management the best.
You think you have outsourced to the cleverest people around (which is why they charge, and you pay, the big fees), and therefore you are not motivated towards self education.
When you find out your super has diminished by 50%, and/or had margin calls, and you are over 55, and your divs just got cut by 30%; just like brain surgery, it is all too late....
I cycle with three guys (an ex trade commissioner, a CFO, and an ex wing commander with the RAAF)......
They have all been adversely effected by the advice of FAs.
The damage these guys do is lull you into false sense of security, having you believe they understand and implement risk management the best.
You think you have outsourced to the cleverest people around (which is why they charge, and you pay, the big fees), and therefore you are not motivated towards self education.
When you find out your super has diminished by 50%, and/or had margin calls, and you are over 55, and your divs just got cut by 30%; just like brain surgery, it is all too late....
Just my two bobs. I think a good financial planner is vital to someone with complicated finances as they can provide direction and make sure that you are on the right track with insurance, superannuation and investments. A good financial adviser should be able to work with you based on your own risk tolerance levels and favoured investment areas and not just try to push you into products that pay the highest commissions. Having said that, I totally understand the anti-financial plannner sentiments of some on the forum as there are plenty of examples of planners lining their own pockets by placing undue risks on their clients with their investment advice. The commissions paid by funds to advisers make this inevitable unfortunately. Ideally planners should be able to survive on a fee for service basis alone, but that's just not the system we have.
Regards,
Cameron Perry
Perry Financial Strategies
Regards,
Cameron Perry
Perry Financial Strategies
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Seems those who voted FPs are a waste of time & money are neck to neck with those who think they are of some value. For those voted the latter mind to explain what value FPs contribute to your wealth strategy, and name names if possible.
Personally, I have been through quite a few FP's Bridges, Retireinvest, First State, Telstra, Suncorp (must be getting old as I had trouble remembering the 5th one). Actually I went to a 6th one Count financial.
Ohh then i had a discussion with a FP at my brothers wedding
All taught me something or re-inforced my own knowledge...
You have live on one wage and save second wage for 10 years.
Consolidate your different super funds into one.
One company never came back to us.
One FP told me I was a sofisicated investor and could not offer any advise.
One talked the same language for 2 years until I asked about SMSF and then could not offer any advise except that SMSF were lumpy, hard to manage, expensive and needed auditing each year. (although did mention if any of his clients could manage a SMSF it would be me).
One FP had to get information out of his office waste bin twice ( as he had thrown out, out of date pamphlets out)
Oops - just remember I took son to his FP. FP could come up with a FP for 19 year old on minimum wages.
Yes - I have learn't because I have been open to learning.
Come July 2009 - we will be opening a SMSF.
Bottom line are you always 100% happy with service or knowledge given in any industry eg retail, health, construction etc.
heers
Sheryn
Ohh then i had a discussion with a FP at my brothers wedding
All taught me something or re-inforced my own knowledge...
You have live on one wage and save second wage for 10 years.
Consolidate your different super funds into one.
One company never came back to us.
One FP told me I was a sofisicated investor and could not offer any advise.
One talked the same language for 2 years until I asked about SMSF and then could not offer any advise except that SMSF were lumpy, hard to manage, expensive and needed auditing each year. (although did mention if any of his clients could manage a SMSF it would be me).
One FP had to get information out of his office waste bin twice ( as he had thrown out, out of date pamphlets out)
Oops - just remember I took son to his FP. FP could come up with a FP for 19 year old on minimum wages.
Yes - I have learn't because I have been open to learning.
Come July 2009 - we will be opening a SMSF.
Bottom line are you always 100% happy with service or knowledge given in any industry eg retail, health, construction etc.
heers
Sheryn
It's much cheaper & easier to read "The Wealthy Barber"
Financial Planner or Property Investment Advisor
Visiting a financial planner to discuss Property Investment is a almost complete waste of time for a couple of reasons.
First is that they cannot make any money from selling you one, so why would they advise you to buy one. As pointed out by some of the contributors already, they are in business like everyone else to make money. They will almost always advise you to sell your IPs and come back. You will then have a pocket full of cash ( made from the growth of your IP) that they can advise you how to invest and then they can make a commission.
Secondly, directly owned property (as opposed to managed property trusts etc) are NOT regarded (in law) as a financial product and are therefore not controlled by the same legislation as all other forms of investment.
There is a push at the moment by PIPA (Property Investment Professionals of Australia) to have legislation put in place to ensure that all Property Investment Advisors are properly qualified and licensed.
If you are looking to get advice on Property Investment, a look at their website
www.pipa.asn.au
will give you a list of their members who have met the required standard to be a member of the Professional Industry representative association. then you will be speaking to someone who is a specialist in Property Investment and can advise you.
Visiting a financial planner to discuss Property Investment is a almost complete waste of time for a couple of reasons.
First is that they cannot make any money from selling you one, so why would they advise you to buy one. As pointed out by some of the contributors already, they are in business like everyone else to make money. They will almost always advise you to sell your IPs and come back. You will then have a pocket full of cash ( made from the growth of your IP) that they can advise you how to invest and then they can make a commission.
Secondly, directly owned property (as opposed to managed property trusts etc) are NOT regarded (in law) as a financial product and are therefore not controlled by the same legislation as all other forms of investment.
There is a push at the moment by PIPA (Property Investment Professionals of Australia) to have legislation put in place to ensure that all Property Investment Advisors are properly qualified and licensed.
If you are looking to get advice on Property Investment, a look at their website
www.pipa.asn.au
will give you a list of their members who have met the required standard to be a member of the Professional Industry representative association. then you will be speaking to someone who is a specialist in Property Investment and can advise you.
I have found FP's have added contiributed to my knowledge regarding pensions, benefits, etc. Although my mum is not eligible for the aged pension (assets test), I didn't know she could get various other benefits until going along to some free seminars held by big name groups.
In going to various seminars, I have found it seems to be more about the actual planner, than the organisations they worked for. Some of them sound very switched on regarding property etc (a guy from RACV FP - fee for service - was one of them, which might surprise many).
Cheers,
The Y-man
No doubt there's a few good FPs......but how on earth do you find them if they are the exception.......you can't rely on free market forces and word of mouth because most don't know if they are getting a good deal or not......unless you have a massive bear market like we just did.....and then FAs just say you have to stay in for the long term, risk is inherent....yadda yadda yadda.
Anyway, how many FA users have had their FA phone in the last few weeks and discuss the pros and cons of fixing mortgage rates?
Anyway, how many FA users have had their FA phone in the last few weeks and discuss the pros and cons of fixing mortgage rates?
My husband basically had the same experience in Perth. We came across the financial advisor a few years later who was operating under a different name.
My Aunty paid big $$$ to see a guru financial planner and author with initials NW. She wasn't impressed with advice and I couldn't believe it either. She was advised to sell her properties while the were low and buy shares while they were high and soon after shares copped a beating and property boomed.
That is pretty much the problem. Finding the good ones which are few and far between. The FP I saw most recently came highly recommended. The experience resigned me to the fact that FP's are not for me.
Regards Jo
Same as mortgage brokers and loans. While you may get the most appropriate loan available from the broker, it doesn't mean its the most appropriate loan - just the best available on their approved list provided by the aggregator.
They too should move to fee for advice and remove the taint of commission based selling.
Several years ago we sought out (hard to do at the time - few and far between) a broker who was fee for service rather than commission based. We told the young chap (younger than us) that we were happy to take risks, wanted to grow our portfolio etc.
His advice was to sell our IPs, pay off our PPOR and sit the remainder in some sort of cash management account. Pffttttt!!!!
His advice was to sell our IPs, pay off our PPOR and sit the remainder in some sort of cash management account. Pffttttt!!!!
Get a good accountant who willtake emails of the strategy and reply with pros and cons! That is one of the best decisions I ever made and still do!
No vested interest and usually conservative. Mine is in south west sydney and happy to recomend him if you want.
Peter
No vested interest and usually conservative. Mine is in south west sydney and happy to recomend him if you want.
Peter
Biggest issue for an accountant is that he/she can get into trouble for "giving financial advice" unless licensed to do so....
Cheers,
The Y-man
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