Financial advisor connected to super fund that is external

Discussion in 'Financial Planning' started by pwnitat0r, 30th Jul, 2018.

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  1. pwnitat0r

    pwnitat0r Well-Known Member

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    Someone close to me has had an external (outside of the super fund) financial advisor connected to their Golonial First State super fund for over 15 years.

    This advisor has been charging ~$260/mo or around ~$3,000 a year.

    I'm not sure how much the fees were when it first started... but if you assume $3,000 a year in fees for 15 years, which would have been compounded at an average rate of 8% it works out to be $80k in lost income.

    I only found out today because this financial advisor is retiring and has sold his portfolio to another company - this new company had a meeting today and was trying to convince of investing with them... they mentioned 2% or 2.5% in initial set up fees.

    This person was extremely stressed and under the impression they had to have a financial advisor. However, luckily a quick phone call to Colonial First State got the advisor fees stopped and there is now no longer someone gouging fees from their super for doing nothing.

    Obviously the next step will be to make some complaints and see if these fees can be refunded since there was no advice given.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Royal Commission material!
     
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  3. Chris Au

    Chris Au Well-Known Member

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    Yes. I wonder if we can do anything as a result of finding similar circumstances. I quit my FP after being frustrated about $60/mth fees on the wrap acct for holding a portfolio I couldnt control.
     
  4. bunkai

    bunkai Well-Known Member

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    Bloody oath. It may well be that the financial adviser was a Commonwealth bank one if this was colonial first state.
     

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