When would you use a Financial Planner?

I

INVSTOR

I was wondering if any forumites seek advice from Financial Planners? If so, how was your experience? My hubby saw a financial planner before we met (the type that changes their name every couple of years, receive commission) which left us with a huge tax bill years later and no asset. (tea tree plantation, no taxation ruling) :rolleyes:
My friend saw this organization recently, which I think could help you weigh up options and have a plan in place. It sounds tempting for someone like me who's pretty indecisive, is it worth the expense? http://www.ncba.com.au/
 
Yes, I've had the tea tree plantation after seeking advice. And I had an FP who used to be a member of this forum- fortunately, unlike some, I didn't lose a big amount.

We're finally going back to an FP who sounds similar in approach to yours- with the recommendation from our accountant that none of his clients lost money in the GFC. We haven't had our plans drawn up yet, but the advice so far seems sound.

At age 60, we need to have things well planned for retirement- we're heading well in the right direction, but need some help in structures.

Some banks require an FP signoff to lend money for an SMSF to buy a property.
 
INVSTOR said:
I was wondering if any forumites seek advice from Financial Planners? If so, how was your experience? My hubby saw a financial planner before we met (the type that changes their name every couple of years, receive commission) which left us with a huge tax bill years later and no asset. (tea tree plantation, no taxation ruling) :rolleyes:
My friend saw this organization recently, which I think could help you weigh up options and have a plan in place. It sounds tempting for someone like me who's pretty indecisive, is it worth the expense? http://www.ncba.com.au/
Click to expand...

Really depends on the purpose of your visit to the FP.

Over the years I have worked with many FP and as you say, some are good and some are bad. Sorry to hear about your experience and I can tell you some awful experiences of clients I have spoken to, one who was exposed to the sham from Mr Nguyen (Cwth Financial Planning).

There is no right way to say this but you have to do your due diligence and choose a FP based on a recommendation of a friend (or forum member), many FP have now been frustrated by FOFA, and will find a new way to earn their buck.

Like any industry there are some bad apples who are driven by fees and a drastic conflict of interest, however, there are some great FP, and I could recommend a number in VIC and QLD, however could not in WA.

Hope you do not have a repeat experience, and please continue your due diligence before you choice is made and weigh up the fees before proceeding.

The point Geoof made around SMSF and FP, there is a huge misconception there, many of the bank DONOT require an SOA prior to entering a LRBA, they just require a RG146 accredited person to sign a certificate (usually two pages) saying the the loan and structure has been explained to the client. Unfortunately, clients get forced into paying up to $5k for something they donot need.
 
Redwood said:
The point Geoof made around SMSF and FP, there is a huge misconception there, many of the bank DONOT require an SOA prior to entering a LRBA, they just require a RG146 accredited person to sign a certificate (usually two pages) saying the the loan and structure has been explained to the client. Unfortunately, clients get forced into paying up to $5k for something they donot need.
Click to expand...

Thanks for that clarification.

I was going on the advice provided to me by a mortgage broker- I may well have misunderstood what he was telling me.
 
I've been to a few.

First one said to not do anything yet as we weren't in a strong postion.

Another basically listened to my general plan and wrote up a proposal which basically outlined what I had said. Waste of money.

Another suggested shares (through their managed fund of course).

Another (after me stating I needed someone with investment properties that could guide me in that direction) again suggested selling my properties and getting into shares.

One connected with my Super listened to my position. I basically wanted info about transitioning to retirement and how beast to do that considering my CF+ portfolio. He did give me a few pointers but I never heard from him again.

I'd like to know if anyone ever has any success.
My accountant has been of some help.
 
I don't think I will go for one as I have a finance degree and it will be a nightmare to get financial advice from most out there. So ignorant and stupid most are as students. And I reckon they get better by making all sorts of mistakes. :eek: I would rather study financial planning.
 
Redwood said:
The point Geoof made around SMSF and FP, there is a huge misconception there, many of the bank DONOT require an SOA prior to entering a LRBA, they just require a RG146 accredited person to sign a certificate (usually two pages) saying the the loan and structure has been explained to the client. Unfortunately, clients get forced into paying up to $5k for something they donot need.
Click to expand...

But by signing these documents the Fin Planner will be declaring that they have advised the client and to advise a client they must have done a SOA.

I agree it is unfortunate, but it would be risky, from a legal POV, for a Financial Planner to sign without having given the advice.

I am not sure, but I would think the person signing may also need to be licenced - ie not just have the RG146.
 
When I first started my Investment Journey I went to a few advisors, just to see what they could offer and any ideas that might have etc.

First Advisor - wanted to sell me products, managed funds, Cash Investment Accounts and did not want me to invest in Property, showed the historical growth graph "Shares VS Property." I must admit I was hooked a little and agreed for them to draw me up a Life plan $880.
As the "Life plan" was getting drawn up I was also reading some books, by Jan Somers, which opened my mind that financial advisors are not always the best source.
Yes they can assist, but the majority I have found do not appreciate that I wanted to Invest in Property.

Second Advisor- He was ok, and understood my property Investment goals, but said I could diversify into some shares (I agreed).
He also wanted to look at my current Insurances and Superannuation.
But..... this was left alone, as I work Offshore (Rigs), obtaining TPD was not covered by the insurance companies they used, so therefore it was all left alone and My super was left alone too.
Safe to say, communication was nil after that initial consultation.

In my experience, I have learnt more from the old man, accountant, Somersoft, books and fellow somersoft investors.

Not saying thier is not a place for Financial Advice but for me, not warranted at this time.

Cheers,
Wirra
 
Some years ago I was looking at a block of 20 apartments. They were very run down, with a lot of squatters, but in a reasonable part of town and structurally really sound. It was a classic reno, strata, sell (or hold) with a very big upside. I didn't have the capital, so I approached a friend who had previously expressed interest to go halves.

The friend went to an FP who advised him against property completely, and suggested that he invest instead in managed funds- which at that time, gave him commission

I missed out on the deal, somebody else made a motza.
 
I found it interesting that my friend I mentioned in my initial post has a large duplex block with reno'd house as an investment. My friend wants to sell it but the Planner is telling her she should keep it. That's the first time I've heard of a financial planner being for property. My friend doesn't crunch numbers, or take much interest in investing, etc so I think she got her satisfaction, money's worth although she's still keen to sell the IP.
I'm tempted to sell half of our IP's and invest more in shares so maybe it would be worthwhile getting advice from reputable person before jumping in, in the case my plans are floored and there's number crunching I've overlooked. I guess ultimately though it comes down to what you are comfortable with. No-one can decide for you what will be suitable for your own SANF. But I guess you could gain some new ideas or pick up some situations you've overlooked.
She mentioned also that the fee was taken out of her super. That makes sense as it is planning for your retirement, but is everyone entitled to pay fee that way?
 
The FP doing my plans now is pro property. Now that it's more fee for service rather than commission, there's less motivation to steer people purely in one direction.

At an age where super is more easily accessed, the FP's suggestion to do more in the SMSF is a good one. Diversification is an issue as well.
 
INVSTOR said:
I was wondering if any forumites seek advice from Financial Planners? If so, how was your experience? My hubby saw a financial planner before we met (the type that changes their name every couple of years, receive commission) which left us with a huge tax bill years later and no asset. (tea tree plantation, no taxation ruling) :rolleyes:
My friend saw this organization recently, which I think could help you weigh up options and have a plan in place. It sounds tempting for someone like me who's pretty indecisive, is it worth the expense? http://www.ncba.com.au/
Click to expand...

I don't use a financial planner, as I know what I need to do moving forward so I really don't see the point. They are not going to add any value as far as I am concerned.

For me most important factor is how to structure my stuff and best way to minimise tax as a developer/investor and my accountant is a developer has the knowledge/experience to assist with this. I also get him to run the numbers and various scenarios, but I always do this anyway but good to get his opinion.

This group/link you posted, I think pretty conservative group, this guy reports on ABC. Nothing mind blowing, assets vs liabilities, spread risk, they all have their own spin on this but ......if it ain't broke don't fix it.
 
geoffw said:
Yes, I've had the tea tree plantation after seeking advice. And I had an FP who used to be a member of this forum- fortunately, unlike some, I didn't lose a big amount.
Click to expand...
Yes, I remember you got stung also. We attended some of the meetings in Perth along with many other investors held by the Tea Tree management that set it up. They explained they only had enough money to pay themselves and couldn't distribute any money to the investors. One of the investors wanted to know if we could all travel to the farms and set the trees alight. I did pity the poor people nearing retirement that invested a lot more!
 
MTR said:
I don't use a financial planner, as I know what I need to do moving forward so I really don't see the point. They are not going to add any value as far as I am concerned.

For me most important factor is how to structure my stuff and best way to minimise tax as a developer/investor and my accountant is a developer has the knowledge/experience to assist with this. I also get him to run the numbers and various scenarios, but I always do this anyway but good to get his opinion.

This group/link you posted, I think pretty conservative group, this guy reports on ABC. Nothing mind blowing, assets vs liabilities, spread risk, they all have their own spin on this but ......if it ain't broke don't fix it.
Click to expand...

Go girl, you're doing some amazing stuff! What you are doing seems quite in line with Steve McKnight and I really think a lot of his books/advice and from what I know people got from his mentoring programs. Good points above. I have no faith in my current accountant, got onto him after another girl left. I may have to try to track her down!
 
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