Do you use a Financial Planner

Or the client may not have previously been charged: dear old Doris wanting some help with Centerlink; client sends execution only email to buy/sell shares - yes, it happens.

All the background paperwork is still necessary (in house lawyers freaking out - regulation of financial reforms) even to the extent of preparing a statement the client did not seek advice on the buy/sell.

It costs.

 

thx

I had an accountant terminate me, not nice

I begged him to take me back. Been 5 years now, still with him. I wont say what happened

 

Ok now I understand

Business still needs to be viable, its not a charity

 

If we're looking at actual areas of advice all good FPs will cover areas including budgeting / cash flow advice, debt reduction / planning / management, superannuation and contribution strategies, retirement planning, Centrelink planning, personal risk, business risk.

Then outside of that there are the benefits which are harder to quantify. Things like making sure clients stick to their financial plans, helping manage behavioural biases in investing, helping coordinate and manage the client's needs with other professionals (lawyers, accountants, brokers etc). Even just the pure peace of mind and sleep at night factor from having someone you trust that you can call at any time.

 

My parents use a financial planner. However they are mostly focussed on getting the best investment returns rather than the "holistic" advice which is actually run by other service providers - lawyers do estate planning and asset protection, finance brokers structure the loans, accountants do tax and super fund strategy and the planners get the investments to go well.

Sadly the good FP's are quite selective.

 

Makes sense. Thx

 

Hey @MTR, we attended Nick’s seminar on the weekend. There was so much info to take in and a big booklet on the slideshow. He isn’t taking on new clients. Recommendations for people who are looking for an advisor- choose an independent financial advisor. Visit these sites.
Home - Moneysmart.gov.au
https://www.fasea.gov.au/
PIFA

It was a great seminar overall and I would highly recommend it to anyone over 40.

All general advise. Heaps of tips!

I understand a lot better what our retirement future will look like.

 

My 2c which has probably been mentioned here already is that a good FP like a mortgage broker should be someone with a healthy portfolio and willing to show real-world and personal examples.

 

Does this apply to real estate agents?

Seriously, I always check out their car

 

Does a doctor need to have cancer to treat it?

 

The downside of this approach is that you automatically exclude great advisors who are younger, divorced or coming back from a financial hit somehow - kid got sick etc.

None of those life events govern their aptitude to the job.

 

So if i’m looking for a lawyer to do a will…. I need to visit graveyards?

People with lots of knowledge useful for investing dont necessarily have the risk appetite to invest. Doesnt mean they are bad advisors.

 

If they have a nice car, it means they decided to take out a large loan....doesn't tell you much, except that maybe they like cars, or maybe they like attention.

 

Maybe…. Maybe not….image is very important in this game

Would you use a real estate agent to sell your house if he pulls up in a bomb? would make me wonder, does not instill confidence right

 

If it was like a $1,000 bomb yeah I would wonder, but you can get a safe and respectable looking car, say 5 years old, for like $15k these days.

I think I question the image thing, because I know that anyone on a half decent salary can take out a $100k car loan....and sometimes they might have no assets and no properties...just an expensive car. It is not a great indicator of success or of ability.

 

No doubt but Its a psyche thing.
Could also work the other way, depending which suburb the re agent is selling.

 

I have not started using a financial adviser.

But I will be contacting one when I have specific questions. In other words, I would have a proposed strategy, and would ask how do I maximise my gains (structuring for tax, etc)

Definitely fee-for-service only in my view.

 

Pretty much sums it up

 

Who is your FP if you dont mind sharing?

 

All professions can be divided by the law of 60/20/20, 60% are average, 20% are dangerous and 20% are competent professionals.

I work from an office inside a FP office, along with an accountant, whom I both personally and professionally engage, and know are highly competent professionals, who are worth more than I pay them, by a long shot!