Financial Planners ??

Hi GW

Not a comment on any product or service, but as a business person I can tell you that one can have the best product or service in the world AND still there is a natural resistance to look at things new.

I am almost as guilty as most, perhaps more so when getting the inevitable call a few times a week. I looooooooove listening to the skills (or lack thereof) and working a good telemarketer.

We are sooooooooo conditioned to be careful of this or that, or its to good to be true etc that most of us walk by opportunities everyday, including me.

Without "sales people" and marketing NOTHING would work in our economy.

As I was once told, if the best product would always sell the fastest/easiest or provide the most profit WHY is "would you like fries with that" so successful ???????????

I am adamant that my biggest enemy will always by my potential client's indifference.

By the way if you purchased a video from somewhere you are NOT a cold prospect. You are a user of that product or service and therefore are a warm to hot prospect fro more of the same.

ta

Rolf
 
Hi Rolf,

By the way if you purchased a video from somewhere you are NOT a cold prospect. You are a user of that product or service and therefore are a warm to hot prospect fro more of the same.
Yeah, I'm cool with that. I guess what I'm more concerned about is that it was marketed initially as something which had unlimited prospects- and demand the vendors could not keep up with, so they were willing to share.

But the more aggressive marketing of this product makes me think (realise?) that this is not all what it appears on the surface.

The story of a great cashflow which can lead to such a great lifestyle is great. And the marketing sounded as if the selling of it was just surplus to requirements.

Silly me.
 
fgayton,

"Screaming pigs!!!!!!!!!

It sounds to me like many property investors posting comments about Financial Planners and Superannuation have failed to follow some fundamental logic."

Thank you for your eloquent post but could you please expand on this as if my comments are incorrect I am always willing to learn.
 
Just a few points to add here after reading the postings on this thread:

The term "screaming pigs" comes from John R Burley. If you want to know more, I recommend his book. It is not a derogatory term of fgayton's but a wake-up-to-the-real-world comment.



One must remember that for the masses, a conservative investment plan is what they want. If a Financial Planner can help them get this and that is what the person wants, then who am I or you to tell them otherwise. The fact that we are on this forum demonstrates that most of us are not part of the 'masses' (or at least no longer wish to be).

FP's (like all professionals - accountants, lawyers, etc) have strict guidelines to follow when dealing with other people's money. If you think they are being unethical, then report them.

I am not an FP or in any way associated with any FPs. I have an accounting degree (but am not a practising accountant - not yet anyway) and even though I do not sell my services I still must be careful exactly what financial advise I give to people (even family and/or friends).

When chosing an FP, ask the right questions to see if they are appropriate for your investment type, the same as you would an accountant or lawyer if you required their services. After all it's you who will be paying them so take some responsibility for your investments.


Hope you all have a great new year and that 2003 brings all the prosperity and happiness that you desire.

Steve K
'Live long and prosper'
 
It's the people, not the profession. You are all aware mortgage brokers get trailing commissions for the mortgage they arrange for you. Some brokers will steer you into a product based on the comisssions they get. Some will persuade you to go for long term fixed rates for the same reasons.

Find ethical people in these professions, don't just slam FP (or mortgage brokers) just because there are bad apples.

Jas
 
FP's & Mortgage Brokers

Any quality of advice whether it be Fp's or Mortgage Brokers comes from experience and a commitment to their own personal development in their craft.

Quality advisors WILL provide quality disclosure.

ALL FP's are supposed to hand over what is called an ASG (Advisory Services Guide) to all potential clients before any advice is given.

This is NOW law!

This document will provide disclosure regarding their fees and/or commisssions. It also pays to clarify their commissions and/or fees.

It is also good practice to ask what the FP invests in and why.
Why would you go to a bellarina to learn Football????

The Mortgage Broking industry is not regulated except by maybe Codes of Practice by industry associations like Mortgage Industry Association of Australia, but NOT all brokers are members of the association! It's self regulating I suppose.

I know a few brokers and they would get my business without hesitation. I found their integrity and work ethic exceptional.

Always ask how they make their money and get them to put it in writing.
Always ask their methodology when offering advice.
If they hesitate be VERY suspicious - infact I wouldn't deal with them. Any advice should be backed up with compelling evidence.
You can also ask Brokers what commissions are given by the different lenders and if they will receive a trail commission.
It is not mandatory for a broker to identify commission levels only that they will or may receive them.
If they wont disclose their comissions give them the flick!

Please note that Mortgage documents from the lending institution will by law document the commission they pay the broker.

I will only work with brokers who understand investment, because they invest themselves, and who will recommend a loan on the basis of what is sound for me and my circumstances. These brokers follow the same principle as FP's -

"know your client"!!!!

www.yourmortgage.com.au has a checklist for weeding out the dodgy finance brokers of this world.

To those brokers out there that genuinely put their clients/customers first I thank you for the great work you all do.
It is refreshing to know that someone will go into bat for me and knows how the game is played.

Cheers,

Andrew:D
 
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