Someone convince me that Financial Advisers are useful

[neK]

So what is a financial adviser, silly question perhaps but??

Seems many claiming to be financial advisers but all they are doing is flogging a particular product.

Its an unpopular truth, but financial planners who are salaried by the bank are simply a distribution arm for the wealth management division. But no one is going to admit that.

That said, there are good financial planners out there amongst these ranks, they just aren't easy to find. I've seen good planners do things that aren't necessarily the best (while the strategy did work - they did admit that it wasn't required), simply to meet quota to get their bonus.

While the industry and how it functions does irritate me, I'm glad that there are good ones out there (even if it a number that I can count on my hand - yep hand, not hands).

 

[Terry_w]

But then why not use a savy accountant??

I dont really know any financial advisers that are guns at property investing per se or share trading.

This is the thing, what are they advising on exactly?? I dont get it, wont most successful property investors know more than the financial adviser because they are focusing on a specific asset class.

MTR

Because they are not licenced to give financial advice. A self managed superfunds for example are financial products and you need to be licenced to give advice. I am a lawyer and CTA for example, but I am about to get licenced so that I can advise people on SMSF - its silly really, but it would be too risky for me otherwise. There is a fine line between legal and financial advice and I am covering myself by getting all necessary licences so I can advise in all 4 areas of investing. Financial Planning is where I can put it all together.

 

[Rixter]

I can't see how a non lawyer could give estate planning advice. There is no point going to a planner and paying for advice which basically says "get a will done and a power of attorney". Pointless

Exactly, but like I mention - referrals etc

 

[TMNT]

Being a property investor i find it ludicrous to take any advice from a commission driven sales rep who probably is still living at home and has no investment property experience
who most likely for his qualification from a 6 month tafe course

No thanks

 

[neK]

Being a property investor i find it ludicrous to take any advice from a commission driven sales rep who probably is still living at home and has no investment property experience
who most likely for his qualification from a 6 month tafe course

No thanks

Can be done quicker through Kaplan and its open book

 

[Kinnon Bell]

I remember reading in the Fin Review a little while ago that planners who work for banks recommend something like 80% of their employers products. Not very impartial if you ask me - no wonder they have a bad name.

I have a great fin planner contact in Melb who is a rare breed - she does it because she loves it and the money is secondary. If a product is more suitable for a client that is not on her approved products list she will seek 'permission' to recommend that product even though it's more effort on her part. She also is happy to recommend direct property too if it suits her clients which I've never known a FP to do. She's one of the good guys.

 

[Hoffy]

Would someone seeking advice from a WBC planner really think that they may recommend a CBA product? Yet we pretend to be offended by the practice. If you want Independant product advice, don't go to a bank planner, it's pretty simple.

Plenty offer full fee for service and are product agnostic, especially the younger, more highly qualified brigade. Plenty recommend direct property, industry super funds etc, because they get paid the same regardless.

 

[Brady]

Would someone seeking advice from a WBC planner really think that they may recommend a CBA product? Yet we pretend to be offended by the practice. If you want Independant product advice, don't go to a bank planner, it's pretty simple.

Plenty offer full fee for service and are product agnostic, especially the younger, more highly qualified brigade. Plenty recommend direct property, industry super funds etc, because they get paid the same regardless.

I disagree, planner who I refer my clients does what's best for the client. Often it's with other institutions, he is not your normal planner. Not many of his collegues would do the same. He does what's best for the client. If it's better for the client it's better for him as it's still writting business and the clients trust him.

 

[Hoffy]

I disagree, planner who I refer my clients does what's best for the client. Often it's with other institutions, he is not your normal planner. Not many of his collegues would do the same. He does what's best for the client. If it's better for the client it's better for him as it's still writting business and the clients trust him.

A CBA branch planner? Writes investment platforms other than CBA?

Must be exceptionally rare, but as you suggest that would be the extreme exception if true.

 

[Brady]

A CBA branch planner? Writes investment platforms other than CBA?

Must be exceptionally rare, but as you suggest that would be the extreme exception if true.

Correct. But more talking risk insurance side of things.

He might be exceptionally rare, but not rare for him. If it fits the client. Also find that now it's simplified for them to be able to arrange cover through existing super policies. Decreasing the previous services costs require to set up and transfer super.

 

[Mr. Fabulous]

If you want Independant product advice, don't go to a bank planner, it's pretty simple.

Hoffy, you would be absolutely astounded (maybe) by how many people don't think this way.

Over half of people polled in a recent poll thought that they were receiving independent advice from their bank planner.

 

[Rixter]

I have a great fin planner contact in Melb who is a rare breed - she does it because she loves it and the money is secondary.

She is a rare breed indeed not having to work to fund her lifestyle.

Some one who's walked her own talk to financial independence. Kudos to her!

 

[oc1]

She is a rare breed indeed not having to work to fund her lifestyle.

Some one who's walked her own talk to financial independence. Kudos to her!

Sounds like you are giving kudos to yourself buddy

 

[Rixter]

Sounds like you are giving kudos to yourself buddy

I am not a FP and have no intention to be one. Are you one oc1?

 

[Hoffy]

Hoffy, you would be absolutely astounded (maybe) by how many people don't think this way.

Over half of people polled in a recent poll thought that they were receiving independent advice from their bank planner.

No, doesn't astound me in the slightest. These are the target audience of the bank channel.

 

[Hoffy]

Correct. But more talking risk insurance side of things.

He might be exceptionally rare, but not rare for him. If it fits the client. Also find that now it's simplified for them to be able to arrange cover through existing super policies. Decreasing the previous services costs require to set up and transfer super.

Thought so. Where is the super?

 

[spludgey]

I would love to send my mother in law to a financial adviser.
She's just so bad with money, it's ridiculous. While she doesn't earn a lot of money, she does work full time and lives in a PPOR that's completely paid off. Yet she can't make ends meet.
She thinks that she won't ever be able to retire, and if she continues like this, she's absolutely right.
I've brought it up with my partner before, but I'm not allowed to send her to a good financial adviser.


Personally, I wouldn't use one for myself. I've got a clear direction and I'm sticking to it.

 

[Brady]

Thought so. Where is the super?

MLC, AMP... Not with CBA

 

[MTR]

I would love to send my mother in law to a financial adviser.
She's just so bad with money, it's ridiculous. While she doesn't earn a lot of money, she does work full time and lives in a PPOR that's completely paid off. Yet she can't make ends meet.
She thinks that she won't ever be able to retire, and if she continues like this, she's absolutely right.
I've brought it up with my partner before, but I'm not allowed to send her to a good financial adviser.


Personally, I wouldn't use one for myself. I've got a clear direction and I'm sticking to it.

Wont work, I know a few family members that are not good with money, from experience unless they can change their mindset and become disciplined they will just go back to their bad habits, regardless of what someone may set up.

MTR

 

[Mr. Fabulous]

I would love to send my mother in law to a financial adviser.
She's just so bad with money, it's ridiculous.

Hi spludgey, I understand that your heart is in the right place, but it would be a waste of time (both hers and the adviser).

I've seen so many cases like this over the years, mate.

'You can lead a horse to water' and all that.