Do you use a Financial Planner

Just curious
Are you happy with results?

With so much information available on net, can we just work it out ourselves.

Shares - VAS, IVV etc etc long term will work well
Own a quality property portfolio, reduce debt


OK, you still need to know how to structure, but a good accountant can help with most of this??

For example…. My g/friend just paid $8,000 for advice from one of the best FP in Perth. I believe this fee will be reduced, this was first consultation

She is delighted as he has promised 8% return pa and he supported this with evidence. He also suggested she receive a pension
Not privvy to all the details
They are Not retired yet.

Not sure how FP can promise these returns, but they are happy and moving forward with this FP

I am not poo poo’ing FP, on contrary I am considering this after I complete my development. I am retired, but perhaps I have missed something, no harm in getting advice, but curious how it panned out for you

 

If you're an expert in something like development, I'm not sure why you'd bother with a FP - you're always going to make more doing what you're an expert in.

But if set and forget is the goal, I guess there's a benefit. Dunno - I don't use a FP, and I'd rather not have someone else to blame for things not working out 'as promised'.

 

Just hooked up with a FP and was impressed. He found little ways with my Super and taxation that i would never have thought of. I know my sister in law poo pooed our strategy of employing him but for the small outlay he will definately be worth it

 

This doesn't sound much like good financial planning, sounds more like a sales pitch about how "great" they are.

In my opinion a good financial planner should focus the most on what they can actually control, i.e. a sound ongoing strategy.

Investment returns are a consideration but no one can guarantee a certain level of returns without some sort of catch!

 

Haven't use any yet to date. May consider SMSF strategist when accessing it, if ever, but not FP as such?
I suppose active investors take on more direct decision making whereas passive investors may benefit if they have not much financial acumen?
Although I would be hesitant to spend $8K on portfolio recommendation but if it benefited a structure such that income would recoup that fee then perhaps yes?

 

8% generally will probably include dividends and growth?
Most investors can probably achieve this today….. but who knows in 2 years time

 

I think that's exactly the issue.

Last 10 years you could have gotten around 8% per annum investing in an Australian shares index fund - I know I wouldn't want to be the person on the hook for promising 8% per annum total return over the next 10 years.

 

What people don't consider is all of the benefits an FP can help people get that aren't related to investments at all.

Depending on situation there is a range of strategies that the average person just isn't aware of or in a position to be across and so can miss out on so many opportunities.

 

Perhaps my past experience (meeting around 5 FP) makes me hesitant to use one as most that I met in the past wanted a % based fee. Some also just wanted to divert to shares instead of RE some liked what we had and wished % to move further and so on.
Mostly found investment suggestions which in our circumstances we needed more structured approach. So it does depend on personal circumstance IMHO.
Now we just use our Tax/Super Lawyer, accountant and Super strategists for structures.

 

Yes. My partner. She's an absolute gun in her field as well as an expert in structuring, accounting and tax. So been lucky in that regard

If you engage a FP just make sure you realise they may help you plan your finances, not necessarily grow them. Most people I know who engaged one were less than impressed .

Imho I think FP are probably best suited for the average person.

Once you have assets in the millions you're likely way above their level of usefulness imo.

Also with regards to your friend, "She is delighted as he has promised 8% return pa and he supported this with evidence".

Let's hope he didn't actually ' promise' her because any one making promises is automatically a huge red flag, regardless of whatever evidence they have to support their promise. Unless the 8% is guaranteed in writing.

 

I agree… red flag with 8%
BTW not hard to achieve this without a FP

lucky …. You married up

 

Yes lucky I have her so I can afford to laze around on PC

 

I think people don't understand what financial planners do

 

I've always done my own financial planning.
I have run a couple of my tax saving ideas past my accountant and after being surprised he agreed they were a good idea.
The last planner I talked to only seemed interested in financial products and pretty cluless about anything else.

 

That is true, but I understand what they charge a little better

 

I have not used FP personally. But i am highly skeptical of their value for average person. In my view, you need them mainly if you are after investment or insurance product which is available only through financial planner. If you are super wealthy, then you need them so that they can suggest various investment products.

 

Nice article

When do you need a financial planner and how to choose one?

 

I haven't used a financial planner yet, but when I am going to use one my thinking will be ...

I would have spent 20+ or 30+ years to get to where I am in terms of savings, assets etc., roughly over 38,000 hours of work just for this reason I would spend 300 hours educating myself, by this time I should able to understand the complexities and decide DIY or FP or DIY+FP(where possible).

just my 2c.

 

I have heard similar from countless people.

 

I’m surprised many haven’t used a FP. As a bare minimum, I would have thought most people would at least have income protection and critical illness insurance set up. I used one to set these up for me.. perhaps you don’t need a FP and you can go direct?