Financial Planners....confusion

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

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  1. Terry_w

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

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    I think you misunderstand what planners do.

    Depends on what advice and what situation. If you wanted to get some life insurance would it really matter if the planner had no insurance themselves? If you wanted advice on drawing a pension from super would it really matter if the planner wasn't a member of a SMSF themselves?

    I am not a planner but frequently advise on strategies that I have not personally used. All that matters is that they work.
     
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  2. TMNT

    TMNT Well-Known Member

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    I know what they do. For the most part I am not trusting my past and future into the hands of some inexperienced young person who has a paper degree and is on commission to sell certain products
     
  3. Intrigued_again

    Intrigued_again Well-Known Member

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    Brings to mind
    • "Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway."
     
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  4. Terry_w

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

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    Sounds like you have no idea what a planner does.
     
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  5. TMNT

    TMNT Well-Known Member

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    You are entitled to your opinion
    I've dealt and met with enough to know
     
  6. MWI

    MWI Well-Known Member

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    This was my past experience too, that financial planners are biased towards the products they sell with no transparency of fees to the client. How do I know what they are recommending is not where they derive the highest commission? Hence after programming many fees into mutual funds never actually invested into them. I suppose this is the same in any industry wether you have the knowledge to be an active or passive investor. If passive then I suppose you need to start somewhere....
     
  7. Terry_w

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

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    Based on your situation as described in the forums are you there type who could probably benefit by seeing a planner.
     
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  8. Terry_w

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

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    Commissions have been banned for a number of years now except for insurances.
     
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  9. MWI

    MWI Well-Known Member

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    What about their fees or trailing fees, would someone encourage me say to a larger investment product if their fee was greater, or having more products? Like say some brokers fees are structured differently, but I doubt the common client has nay transparency or knowledge about that?
     
  10. Terry_w

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

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    No trailing fees banned too.

    Some do charge a few based on the amount managed but not sure why anyone would pay such a fee.
     
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  11. MWI

    MWI Well-Known Member

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    Ok I must be old now and out of touch. So how do they get paid, do they all get paid now for a service fee upfront in what they recommend?
     
  12. Terry_w

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

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    Most would charge a fixed fee, but some charge a % of total asssets of the client - some 1% pa
     
  13. balwoges

    balwoges Well-Known Member

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    I decided years ago not to use a financial planner, the only one I visited 5 years ago gave me advice I had already figured out for myself ... so far all good.

    I have a friend who uses one, she is in receipt of pension and has a small income from super, goes to him to figure out her finances for the year and if she can afford new blinds etc ??? I cant figure this out ... maybe some people just cant handle their finances and need the support of someone who can :(
     
  14. Jane Ridder

    Jane Ridder Well-Known Member

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    Yes, some people do expect a magic bullet and part of my role is to set realistic goals for people. Just this morning I received an email about a prospect:

    Salary: $40K
    Age: mid-30's
    Super balance: $45K

    Late with mortgage repayments and has outstanding personal loan.

    Target retirement income: $150K pa.

    Based on their current circumstances, it's clear that this person needs some financial mentoring (and once again, no products required).
     
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  15. Sackie

    Sackie Well-Known Member

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    Personally, I rarely seriously take advice from anyone specifically regarding wealth creation who hasn't achieved the same level of success as myself or much more. This doesn't include consultants who advise on very specific parts of investing and are experts in their field, though even with them I need to see they walk the walk and are not just textbook savvy, bankrupt 20 something year olds.
     
    Last edited: 17th May, 2018
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  16. TMNT

    TMNT Well-Known Member

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    Of course I'm always open for suggestions and ideas.
    However it's comments like that get me skeptical from the start (no offence) . Maybe I'm happy with my position. Or maybe Im better at it than a planner


    However. I know my situation best. I'd rather ask people I know and people on this forum for advice

    Too much potential for bias for me for a planner

    Edit: one of my relatives took adfcid from a planer and their portfolio tanked. And they chose a not so aggressive strategy
     
  17. HUGH72

    HUGH72 Well-Known Member

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    Good luck with that one. Reality check probably required..
     
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  18. Terry_w

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

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    Doesn't sound like you are happy from all your posts.

    It is like talking about chefs and you saying you are happy eating mcdonalds, yet complaining about how they make cheeseburgers, everynight because your cousin once had a bad experience with a fried rice once.
     
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  19. bunkai

    bunkai Well-Known Member

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    Last planner I saw (long story) wanted 2.2% before we got to the fund managers. Very keen on extending the line of credit into managed funds as well (at 2.2%). Honest when asked how he will outperform - probably not but you get a higher level of service and invitations to special events like Christmas parties. I thought that summed it up nicely really. I did mention the words royal commission in the conversation a few time though.
     
  20. Terry_w

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

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    $1mil invested at 2.2% is $22,000 = crazy.
     
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