Reclaiming fees and commisisons

[lines]

I dont know if im in the right forum but i have been searching the site and could not find anything to do with my question.
I was watching Today Tonight and a story they were doing on a financial company called Yourshare, and the fact that you can reclaim the fees and commissions paid on financial products such as on mortgages and insurance.
Im highly intrigued and the fact that i can get money back without essentially changing anything sounds great. I have had a look on their website and done a bit of research myself, but would like others feedback. Is anyone else involved with this company?

Lines

 

[wylie]

I started a thread on this a while back and will try to find it and post a link.

One thing I would say (and it is gone into in the thread) is that I would not want to alienate my mortgage broker or insurance broker by clawing back any of their commissions, so I have not done so.

It would not bother me at all to claw back a commission from someone who has done nothing personally for me.

Edit: Found the link - http://www.somersoft.com/forums/showthread.php?t=49423

 

[lines]

Thanks Wylie
i read the thread, same company as well.
It gave me increased perspective i guess. I think if i was using a broker as a means of finding the right product for me and sourcing the best deals then i wouldnt be clawing back the commissions, however, im interested to know the exact amount that i would pay in commissions, something that is clearly highly debatable.
The mixed reviews on brokers is actually quite worrying, it seems as though one might be hardpressed to find a 'good' one. But im sure thats not really the case as i know people who would not go without one.
I agree with you, and this was mentioned by Switzer last night, that if you are receiving and need to receive ongoing advice then its probably not a good idea as its essentially what your paying for, but i have products that are just there and i have no engagement with, yet im paying fees and commissions, so for these products i would say that going through a cashback company is worthwhile.
I also read an article about switching to fee for service advisors in order to avoid paying the trailing fees and commissions. Possibly the way to go in order to build a productive relationship and avoid the unnecessary costs.

I'll definitely be inquiring further

 

[tobe]

surely you would just get industry super and insurance etc if you were worried about commissions, rather than used a commission based salesperson and then get them rebated?

For loans, a similar logic applies, although you will find most of the lenders who dont pay commission have interest rates etc similar to ones who do.

Just seems odd to pay a company to rebate (part of) a commission (they obviously dont do that for nothing), when if you did your home work you wouldnt need to pay any of it in the first place.....

 

[lines]

surely you would just get industry super and insurance etc if you were worried about commissions, rather than used a commission based salesperson and then get them rebated?

For loans, a similar logic applies, although you will find most of the lenders who dont pay commission have interest rates etc similar to ones who do.

Just seems odd to pay a company to rebate (part of) a commission (they obviously dont do that for nothing), when if you did your home work you wouldnt need to pay any of it in the first place.....

hi tobe
how so?

 

[marg4000]

I have signed up to Yourshare for some managed funds.

I bought these around 10 years ago from a discount broker. I phoned them and they send me a prospectus, which I filled out the form and returned it direct to the fund manager.

I was unaware of trailing commissions and how that worked.

I figure for the stamp (40c?) and a brief phone conversation (around 3-5 minutes) they have been more than handsomely rewarded already, and if I can get some of the trailing commissions (Yourshare keeps 50% of low amounts) then I might as well.

The situation would be entirely different had more work been done for me as with an insurance or mortgage broker.
Marg

 

[tobe]

an industry fund (or similar) dosesnt pay commisssion, so if you used them inthe first place, there would be no commission to chase.

 

[brendio]

I signed up for Yourshare when Money magazine were offering a $50 sign up bonus. I didn't assign my managed funds and insurance I obtained through a financial advisor for ethical reasons, but included for example my margin loan that I obtained directly online. I got back $30 this year.

Agree with other posters that avoiding unnecessary commissions in the first place makes more sense than being rebated only half of it.

 

[lines]

Definitely makes more sense, if it had of been set up that way in the first place. But on products already registered and established I would guess its well worthwhile. Money for nothing essentially, and its my own money that im keeping in my pocket. I have enquired and im taking the fact that they were so busy as a good sign. Hearing that others are currently using the service and are happy is great for me. Thanks for the response.

 

[asmth]

A friend of mine got me onto this and thought id have a look around. Great thread.
This is fascinating to me as we have half our funds invested in an industry super fund and half invested in retail funds, because although industry funds offer lower risk, they also don’t offer the higher returns that retail funds can yield. Although its often better to play it safe, having a mix offers the best of both worlds, for us anyway. So by going through a cashback service I would be able to claim back the fees and commissions on our retail fund, so we are increasing our cashflow regardless. So many tricks to learn.

 

[bcoombs]

surely you would just get industry super and insurance etc if you were worried about commissions, rather than used a commission based salesperson and then get them rebated?

For loans, a similar logic applies, although you will find most of the lenders who dont pay commission have interest rates etc similar to ones who do.

Just seems odd to pay a company to rebate (part of) a commission (they obviously dont do that for nothing), when if you did your home work you wouldnt need to pay any of it in the first place.....

The Banks cut our commissions by up to and above 30% around 18 months ago. Did they pass this on to our clients with a rate discount? No they did not! In fact their margins have in creased by another 1% above pre GFC.
They will be pushing to not pay us anything, just like financial planning, but dont expect cheaper products offered by brokers. Same as financial planning products..... its just higher profits........... enjoy !!!!

 

[bcoombs]

an industry fund (or similar) dosesnt pay commisssion, so if you used them inthe first place, there would be no commission to chase.

Yep and the return over the past 10 years on industry super........ 3%pa.
You get what you pay for!