Do you pay for ongoing advice?

Thanks for sharing your insights. I am in a similar view to you which was why I was asking about the ongoing advice and where others saw value in it.

My partner and I made the decision together to do the extra contributions upto the 25k cap. together, mostly for the tax benefit of the small amount. We currently don't have any non deductible interest being incurred at the moment, and hope we will live to and beyond retirement age. We do have some investments outside super, and are planning for a family in the next few years if possible so hence the insurance

 

Thanks @Ross Forrester I hadn't really looked at it like that. I don't believe this FA is really an insurance guy, in that the majority of his business isn't really from insurances, though I could be wrong. The FA is passing on all the commission back to us in a sense if I continue to get advice from him so is that a positive?

 

It is better than other models.

The best model is if a financial product advisor is independent impartial and unbiased. If they are not independent impartial and unbiased it is hard for them to act with their conflicts, taint and prejudice daily.

 

Hi Ross,

Would you be able to share your FA (independent advice) via PM with me please?

 

What was the super fund advice? That will help in judging the value. (e.g. which product)

 

Done!!

 

Hmm MyNorth was the product for her. And AMP ended up being the insurer for income protection....

 

hmm... I wonder how independent the advisor was....

Might just be me but if an independent advisor recommended AMP in this climate, I'd want to see a strong rationale.

 

MyNorth is actually a very competitive wrap platform, their reducing their admin fees even further. I know it's just about beating panaroma, networth etc at the moment. But depends on what managed funds they've put you in, as this really determines the total investment cost of the fund.

I'm guessing they've gone with AMP Elevate.. I don't know her age / occupation etc so I don't what they've compared this against to come to this decision, but in general it's not the most competitive insurer out there.

As mentioned previously, doesn't sound like you need the ongoing advice. If your planning on starting a family, pay down that PPOR with your cashflow / put difference in an offset account for accessibility. Review your insurance in 1 year or 2 years as the cover was based on your present situation. If you were worried about the rates climbing, remove the indexation option on the cover - easy to do, just send the insurer a letter. Further more, some of our client's at your age prefer level premiums (more expensive) but it will lock in the premium indefinitely, you could look at changing premium type if this really concerns you.