Someone convince me that Financial Advisers are useful

O

onesixseros

I've got 70K sitting getting about 3.6% interest pa.

Convince me that seeing a Financial Adviser is worthwhile on what I can do with it.

Pro's & Cons, what are people's experiences?
 
Personally - I find that my FA is invaluable. For me - it's mostly for risk cover, super and a bit of SMSF advice.
 
I think that if you find a good one they could be excellent.

I suspect that most aren't however. I went to one that told me investing in property in my situation was too risky. That I should get a PPoR and pay it off over 10-15years while giving them some money to play with on the stock market in blue chips. Can't imagine how much worse off I would be today if I'd listened to them and I'm just starting my property investing journey.
 
onesixseros said:
What are they costing you? If i can ask..
Click to expand...

Mine gets paid a commission on the insurances products I take out (upfront and trail) on life, income, trauma, etc as well as a small management fee taken out of my super. So I personally haven't paid anything upfront for service - but indirectly via the small super management fee (and he's done an awesome job with it thus far).

Cheers

Jamie
 
Hi

You need to find a good financial advisor and don't use a bad one.

A bad financial advisor will concentrate on making money for himself, a good one will really consider your goals and help you achieve them.:cool:

I absolutely swear by my financial advisor as without him I know I would still be forced to go to work everyday to earn a living.:eek:

So find yourself a good one that has a proven history and track record of very happy clients.:D

Regards,

alicudi
 
alicudi said:
Hi

You need to find a good financial advisor and don't use a bad one.

A bad financial advisor will concentrate on making money for himself, a good one will really consider your goals and help you achieve them.:cool:

I absolutely swear by my financial advisor as without him I know I would still be forced to go to work everyday to earn a living.:eek:

So find yourself a good one that has a proven history and track record of very happy clients.:D

Regards,

alicudi
Click to expand...

Thanks for your help, but how do you possibly differentiate the good and the bad without taking on their finance advice and finding out if it is useful or not. Other than asking people to recommend one..
 
j_p said:
I think that if you find a good one they could be excellent.

I suspect that most aren't however. I went to one that told me investing in property in my situation was too risky. That I should get a PPoR and pay it off over 10-15years while giving them some money to play with on the stock market in blue chips. Can't imagine how much worse off I would be today if I'd listened to them and I'm just starting my property investing journey.
Click to expand...
For many people, that is actually pretty good advice.

But of course; the folks on SS are not the average financial intelligence person.
 
I had two financial advisers supposedly help me earlier in my working life, but it turned out the products they recommended made more money for them than me. For the next 20 years I learned as much as I could from various sources and DIYed.

Just before I retired last year and due to the large sums of money involved, I took a punt and saw another financial adviser to get a second opinion. I took it as a compliment when he told me he thought I was well and truly on the right track and that I didn't really need his help.

As a result of my experience, I am a big fan of DIY financial advice, made even easier nowadays with the advent of good info on the internets and great all-in-one guides that they use for FA diploma training, namely the Australian Financial Planning Handbook and the Australian Master Financial Planning Guide (each book is around $150-180).

If I were starting out now with a relatively small sum of money to invest, I'd buy one of those two books, start reading and get investing.
 
Theyre very useful for making coffees, if theyre willing to.

I usually ignore them once they start moving their lips
 
onesixseros said:
I've got 70K sitting getting about 3.6% interest pa.

Convince me that seeing a Financial Adviser is worthwhile on what I can do with it.

Pro's & Cons, what are people's experiences?
Click to expand...

I prefer to plan my own finances.
then again - I don't fall into the normal catagorie of "norm" as I have never been employed, except for a few years post doctoral scientific work in Canada after my PhD studies.
It was fun stirring up the vaccine debate by patenting recombinant vaccines but find that there is so much more $$$$$$$$$ in BUSINESS!

I have never been employed in Australia so I don't think I can benefit from financial advice. Then again - someone may be able to convince me too :)
 
How does being employed compared to self employed mean you don't need financial advise. I would suggest that being self employed it's even more important.

You have no sick leave, no annual leave, no GSC, more likely to get sued.

Off the top of my head

- Risk Insurance
- Asset Protection
- Super
- SMSF
 
Visiting a financial planner is as useful as you make it. For most people who have no idea about investment (of any type), they would probably benefit by getting some advice and doing something. If you're interested in property and reading these forums, odds are you probably won't want to see a financial planner about wealth creation, you'll feel more comfortable doing that on your own.

It's a common misconception that financial planners should be about wealth creation. Things like risk management, superannuation and investment structure advice is where they can be far more useful IMO. A financial planner can help you to protect your money and get the most out of what you make, but I believe it's up to you to figure out how to make your money. This is something the individual should be taking responsibility for.
 
I am setting up as a financial advisor on 01 Mar. I will e focusing on strategy rather than products. With A lump sum like that there may be several simple strategies you can implement such as
1. Pay down a non dedu tible loan and reborrow to invest
2. Gift to a discretionary trust and have the trust invest
3. Lend to a spouse at a commercial interest rate to benefit from differences in tax rates.
4. Contribute to super depending on your ages

Etc etc
 
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