Hi there
I was reviewing my mom's pension requirements and to my surprise I found one of their advisors had sold her an annuity for 50k.
The annuity provides her $280/mth for 22 years. If I had invested 50k in a managed fund and assuming a 5-7% average return she would have $150-220k. As she was withdrawing monthly....I can accept that initially the payment was $280 but what getx my goat is that it was indexed. This was a slight of hand by CBA...I understand that quite of CBA advisors driven by aggressive bank targets sold these sort of products to get the maximum commission. I can see why now. After 22 years they will have paid out $77k...it would have been better for my mother to have earned bank interest or get dividends as she would have got far more. Interesting...enough the Financial Planner has left and guess what no follow-up...I am told by CBA they don't do this...and she will need to pay more money after giving poor advice?? Are they serious?
So I call this Open Advice Review Program. set up CBA due to ASIC and the govt putting pressure on them to sort out their dodgy practices...it is anything but that. As soon as I ask the hard questions...they go defensive and shutdown. I have now asked for the holistic review they did prior to selling this product...again nothing. I suspect the Exec team at the CBA is purposely slowing things down...base on the recent senate review...Ian Narev admitted they have only settled 3 claims and 200 are waiting...the other issue is questions have been asked how such process can be possibly independent when CBA is paying the so call Independent expert?? This shows the bloody mindedness of the CBA. Someone should get charged and put in prison! What a debacle...looks like I might have to go legal with this and sue them for both mis-selling of a financial product as well as costs for litigation. I am in the process of gathering the facts now.
Here are some of the threads to back-up what I am saying......:
http://www.afr.com/news/politics/national/cbato-review-a-decade-of-advice-20140703-jgq49
http://www.smh.com.au/business/cba-...ancial-planning-division-20140818-105buz.html
http://www.abc.net.au/lateline/content/2015/s4221070.htm
I welcome any comments and experiences with CBA OARP...
I was reviewing my mom's pension requirements and to my surprise I found one of their advisors had sold her an annuity for 50k.
The annuity provides her $280/mth for 22 years. If I had invested 50k in a managed fund and assuming a 5-7% average return she would have $150-220k. As she was withdrawing monthly....I can accept that initially the payment was $280 but what getx my goat is that it was indexed. This was a slight of hand by CBA...I understand that quite of CBA advisors driven by aggressive bank targets sold these sort of products to get the maximum commission. I can see why now. After 22 years they will have paid out $77k...it would have been better for my mother to have earned bank interest or get dividends as she would have got far more. Interesting...enough the Financial Planner has left and guess what no follow-up...I am told by CBA they don't do this...and she will need to pay more money after giving poor advice?? Are they serious?
So I call this Open Advice Review Program. set up CBA due to ASIC and the govt putting pressure on them to sort out their dodgy practices...it is anything but that. As soon as I ask the hard questions...they go defensive and shutdown. I have now asked for the holistic review they did prior to selling this product...again nothing. I suspect the Exec team at the CBA is purposely slowing things down...base on the recent senate review...Ian Narev admitted they have only settled 3 claims and 200 are waiting...the other issue is questions have been asked how such process can be possibly independent when CBA is paying the so call Independent expert?? This shows the bloody mindedness of the CBA. Someone should get charged and put in prison! What a debacle...looks like I might have to go legal with this and sue them for both mis-selling of a financial product as well as costs for litigation. I am in the process of gathering the facts now.
Here are some of the threads to back-up what I am saying......:
http://www.afr.com/news/politics/national/cbato-review-a-decade-of-advice-20140703-jgq49
http://www.smh.com.au/business/cba-...ancial-planning-division-20140818-105buz.html
http://www.abc.net.au/lateline/content/2015/s4221070.htm
I welcome any comments and experiences with CBA OARP...