Financial Plan

[alwayscurious]

I recently interviewed a financial planner.

I know that many books state that these people have ulterior motives (sell you financial instruments that they can get commission / trail from)

and I walked into the interview with this in my mind, an eyes open.

I was recommended to sign up and pay for the following
a) Financial plan - $750
b) ongoing investment / financial advice - once a month mentoring $1200 odd.


I am looking at these figures and wincing slightly.

I would like to grow my net worth.

I would like to bounce ideas off someone.


So here's the question.

How many people - have a paid, financial advisor. Especially those with high net worth?

 

[alwayscurious]

I voted "Used to"

because I had one once, who immediately signed me up for some margin lending on managed funds, but advised against buying any property except my own house.

I didn't keep that advisor.

 

[lizzie]

i voted no because although i have seeen 3 different financial planners, none were my choice - early on in investing the banks insisted your talk to their fin planner before loan was approved. two only discussed their own managed funds etc and were on a totally different wave length to what we were trying to achieve and the third was an accountant friend who again waved standard managed funds at us.

we both just glazed over to get thru to compulsary interview and then went on our own merry way. i think you would get a lot more out of talking to those on this forum, or a mentor friend who has similar interests, investing wise, to yourself.

 

[vandalic]

Most financial planners (unless truely independant) will only offer you Managed Funds and Share advice, particularly into buying into funds managed by them or their owners. It is all about commissions $$$$$$$$$$.

Personally, I wouldn't use one. I believe you can learn everything you need to know with some good books and great experience from those who walk the talk, such as some of the wonderful people on this forum.

Read a lot of books on the topics you are interested in, read from both sides of the topic to improve understanding and avoid a misinformed view. Start taking steps, listening and talking to other experienced investors and you will do fine. Once you can crawl, you can learn to walk, then you can look to run

On a side note: Why would you take advice from a financial planner when most of them do not walk the talk? If you are going to seek advice and are interested in what they offer, make sure you are dealing with someone that knows what they are talking about.

I personally don't know anyone that made a living or got rich from listening to a financial planner and buying managed funds? (that wasn't rich already).

Just my 2 cents.

Josh

 

[asdf]

A good planner is worth paying only for structure advice and rules around superannuation. This part of the law changes almost daily and if you have someone who understands it, pay them. With the correct structure, you could save a lot in tax. However if you're not in the retirement stages yet, go out on your own and learn as much as you can elsewhere. Most of the planners our sales guys deal with are not the brightest spark on this planet. I feel so sorry for their clients who pay them good money (not including our up-fronts and trailers) for pretty much shi* advice and service. Don't forget, lawyers spend 5 years at uni full time to be come a lawyer, engineers - 5, doctors - 6, accountants - 4.

Financial Planners? 1 year and this can be done part time.

 

[Panic]

Somersoft

There is no better financial advisor then Somersoft forum and its memebers, combined with your own sensible mind.

If only we could broaden the discussions into other investments then property.....

Thx
V

 

[Rixter]

If only we could broaden the discussions into other investments then property.....

Panic, you can!- over on www.invested.com.au

Cheers

 

[dee]

Ive been interviewing 3 different financial advisors.
I need them to keep my risk profile in check, especially with shares / managed funds
Most dont understand property tho

 

[Panic]

Panic, you can!- over on www.invested.com.au

Cheers

1. I dont want to pay someone for my discussions with other people.
2. 200 members is nowhere near the numbers of Somersoft.

Thx
V

 

[Rixter]

I ticked No

I ticked No for a paid fee to a financial advisor but he does get a commision from other finance houses for products/services I purchase..

 

[Rixter]

1. I dont want to pay someone for my discussions with other people.
2. 200 members is nowhere near the numbers of Somersoft.

Thx
V

What if those 200+ are the "Cream" or Majority contribuitors of SS?

The 1% that are the Wealthy Rich.

Dont ask yourself can I afford to - ask for yourself can I afford Not to!

 

[Jen]

I put "once off" as although I don't have regular meetings with my FP, it is still an ongoing thing. I wouldn't use a FP who is into managed funds. The FP I have is into property & direct shares.
I liked the idea of getting guidance at first & although I don't necessarily follow their plan 100%, it certainly gave me direction. They are also helping me get into the share market with margin lending for long term blue chips & monitoring the market as I don't know how to do it. It is a risk to some extent but I think it beats sitting around saying "how do I do it?" While they are holding my hand, I'm trying to learn as much as I can as well.

 

[Gabriel Conroy]

Yes...

I s'pose the trick is to find a good one. Most folk I speak to have had poor to terrible experiences with planners. Financial advice is a tax deduction so at day's end may not be that much of a hit in $$ terms. Find someone who doesn't take trails, is fee for service, doesn't just push funds and has tertiary (i.e. BBus/BComm) qualifications. I think of my FA as part of the team (accountant, lawyer etc.). I think too that people misunderstand the role of FAs. They are not about making clients fabulously wealthy - they advise on a whole range of financial, super,insurance and lifestyle issues. Your wealth at day's end is about you doing the homework and ultimatley taking the risks after considering sound advice from a range of sources. Gabriel

 

[Peter 14.7]

A good one is a Waste of Time unless you have big $$ to invest.

Sadly, almost all of the others are vested interests. Save you cash and learn or do some seminars.

Peter 147

 

[Ol School Skata]

I previously worked as an Advisor for a four pillar company and was pissed off that it was "sales" oriented - sell our product rather than rational advise... so much so i left 6 months after getting my dream job in this industry..

I have continued my study in this area as i believe it is an area i truly enjoy. But really - if you want an "adviser" i would not speak to anyone who is dependant upon upfront commissions and trailing fees based upon your funds invested.

To be a true adviser i think you should be on a performance fee commission. ie you achieve higher than a predetermined level, reviewed annually, and not just specialise in packaged investment products.

Recently, I looked into a firm franchising it business by appointing financial advisers and wealth creation managers and frankly was dissappointed how this person had sold out and conformed to the normal mould of a "standard financial planner",...like opposite end of the spectrum from when i saw this person first talk about the financial management industry... now this person was conforming to the industry as there was a huge business-potential to it.

Scares me when a guru who i idolised had a "do it my way" methodology conforms to the general population.

Sometimes i hate this industry... other times it really makes me want to break the mould and realise some opportunities

OSS

 

[Medine]

I agree with Vandalic's idea that you are your own best financial planner. Having said that, though, I chose the "YES, regular meetings" because I do have a financial planner that is part of my team of experts. Of course, I have found a financial planner who invests, and understand property

She is able to keep me up to date with the state of the managed funds market, and offer a valuable sounding board for my views on the markets in general. She's an invaluable part of my 'team' . And she doesn't charge me $1200 per month for the priviledge.

Cheers, Medine

 

[quiggles]

I'm with Lizzie - met a bank appointed financial planner. It was hilarious - he brought along his spreadheets and we brought along ours and what do you know - at the end of 10 years we each had a comparable payout figure!

The only difference was that his spreadsheet required the contribution of $12,000 in after tax dollars every year and mine required the acceptance of around $2,000 in after tax profits every year.

He asked if he could have a copy of our spreadsheet.

 

[Simon]

Can I have a copy too?

 

[Mr. Fabulous]

A good one is a Waste of Time unless you have big $$ to invest.

Peter 147

Peter,

Based on personal experience, I strongly disagree with this statement. I had an excellent financial planner who was fully supportive and willing to answer all enquiries (assuming he had the time) even when I had very little to invest. Why do I say 'had'? Well, I work for him now, hahaha.

Must say that Katrina who used to work in the Melbourne office (and has now started her own business) was just as excellent and always willing to answer questions or simply have a chat. Not every financial planner looks solely at the bottom line.

Mark

 

[skater]

Me too?