Financial Planners....confusion

Discussion in 'Financial Planning' started by MTR, 15th May, 2018.

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  1. Nodrog

    Nodrog Well-Known Member

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    F2060646-0501-480B-8A8F-C52E8A15D819.jpeg
     
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  2. Redwing

    Redwing Well-Known Member

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    Retirement planning: How much does financial advice cost?
     
  3. Terry_w

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

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    Why does a planner with a 1 week diploma charge more than an anaesthetist with a 10 year medical degree!
     
  4. Pumpkin

    Pumpkin Well-Known Member

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    Just wondering what sort of academic qualification they have, and how long, how much did it take for them to get that.
    I know personal/working/life experience is important too....
     
  5. AndrewM

    AndrewM Well-Known Member

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    Thankfully soon a diploma won't be sufficient to be able to call yourself a financial planner / adviser!
     
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  6. AndrewM

    AndrewM Well-Known Member

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    Under the new FASEA education standards advisers will need either an approved degree (i.e. specific financial planning bachelor's degree at AQF7) or an approved graduate diploma (AQF8) or an approved masters degree (AQF9).

    Myself, I have completed a Bachelor of Finance and Economics and Graduate Diploma in Financial Planning both of which are not cheap or quick to get.

    The problem is up until the introduction of the new standards all that is required as a minimum is a basic certification which could be obtained for next to nothing.
     
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  7. Pumpkin

    Pumpkin Well-Known Member

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    And that is most likely the reason of why the standards of service and knowledge vary a lot.
     
    Last edited by a moderator: 22nd May, 2020
  8. Coconutwheels

    Coconutwheels Well-Known Member

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    I don't know.....how do any of them justify what they chargeo_O......honestly had trouble finding anyone that charged a fixed fee. Out of the two I did find that charged fixed fee, one was $20k and the other was this guy. The rest were all percentage based with minimum charges and were, in my opinion, rubbish 'advisors'.

    Happy for recommendations though :D
     
  9. Terry_w

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

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    why not an hourly rate?
     
  10. Terry_w

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

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    at $300 per hour that would be 23.3 hours before it hit $7000
     
  11. Coconutwheels

    Coconutwheels Well-Known Member

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    Yes I know right......
    Maybe I didn't look hard enough, but I have not come across any that charge by the hour. Anyone that was cheaper than this guy (which wasn't many) was terrible IMO. This fella is also providing advise across the board, not just plonking the money into a few managed funds and job done.

    I'm hearing you all though, it's still a ton of money, not something I would consider for me, at my age. At this point, taking into account MER and advisor fee they are about $15k better off.

    I'll continue to attend all their meetings and dealings with him, make changes and savings if required, so still very keen to hear alternative ideas.
     
  12. Terry_w

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

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    Why not send AndrewM above a message and see if he can assist.
     
  13. Jane Ridder

    Jane Ridder Well-Known Member

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    There are a lot of models for advice out there but many advisers do work on a percentage of asset basis. I moved away from that model as I don't personally think it is ethical.

    I charge a flat fee and no longer offer an hourly rate as it is a lot more work to track this and ultimately tends to end up with a higher fee than I would have charged otherwise – yes, it takes a massive amount of time to create a financial plan for someone, there are no cookie-cutters here!

    I am currently working towards a Masters in Financial Planning, though to be honest, with a 3 year old at home and all the changes in the industry and the world in general, I’m not in a rush to complete this!
     
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  14. Redwing

    Redwing Well-Known Member

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    Portfolio Construction Case Studies - The White Coat Investor - Investing & Personal Finance for Doctors

    The 6 Steps of Portfolio Construction
    If I had to list out the steps you must take to successfully construct a portfolio, I would list them like this:
    1. Financial planning
    2. Gather information
    3. Account selection
    4. Asset allocation
    5. Asset location
    6. Investment selection
    In the case studies today, I am going to assume that folks have already completed Steps 1-4. So let me very briefly describe what one needs to do to complete each of these steps.
     
  15. Shazz@

    Shazz@ Well-Known Member

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    Thanks for sharing Coconutwheels. For a person like me who is early on in my investment journey, it illustrates that structure should be kept very simple and don’t invest in anything you don’t understand. There is nothing wrong with a low cost super fund and contributing to it regularly until retirement. For investing in shares outside of super, again keep things simple where you don’t need a FP. I have learnt enough on this forum to just invest in a couple of stock standard ETF/LICs and simply top up regularly. The fees seem very high to me for something one can do themselves. Plain daylight robbery.
    Nothing against FPs, I have used them to sort out income protection and life insurance.
     
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  16. Coconutwheels

    Coconutwheels Well-Known Member

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    Yes I agree, my own investments are along the same lines, industry super and a handful of LICs/ETFs (and eventually will be rid of all my IPs), nice and simple.

    I have genuine interest in investments and personal finances so have a fair idea compared to average joe blow but as they say, you don't know what you don't know, and hence not keen on taking on the financial and investment decisions of my parents in their 70s.

    I did look into them plonking it all into an industry super fund, however The difference would have only been $2-3k, the advise is worth that already (I'm talking about advice outside of just what ETFs to buy, which is the simple stuff).

    Cheers
     
  17. Terry_w

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

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    What will their advice entail?
     
  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    ...

    Dont think you will find any specialised medico working for 150 to 250 an hour turnover :)

    ta
    rolf
     
  19. Coconutwheels

    Coconutwheels Well-Known Member

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    Closure of SMSF, review existing investments and move to lower cost options, contribution to super advice - work test (they prob would have been able to contribute for past 5 years if we knew about this), sale of primary residence and sale of IP (what to do with the funds and 'downsizer' rule), advice regarding exisiting individual shares, review estate planning (essentially just pointing them back to their solicitor for a testamentary trust). edit: forgot one, advice around their pension withdrawals, they had just been withdrawing from super whatever it was set up at years ago. After our meeting the other day he got straight onto that and changed super withdrawal to the new minimum and upped withdrawal from personal holdings.

    I guess once that's all done, after the first year or two there may be very little for them to do, but circumstances may change.
     
    Last edited: 23rd May, 2020
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  20. Terry_w

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

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    Now work out how much you would accept as an hourly wage.

    Say it was $300 per hour - which is high. Would that work take 23 hours or more? If so then the fee may not be too high.
     

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