Financial planning

Hi all,

Thinking of using a Financial planner to get my focus in order and maximise my growth and income.

Does any use FP’s to help them with their strategy? Or to help them with income protection?

Matt

 

Definitely for income protection if you want specific advice.

A good one can be very worthwhile but they all have different specialties so you may need to chat to a few to see if they’re on the same wavelength.

 

Financial planners have not traditionally recommended direct property as part of someone's financial plan. Primarily as there is no incentive payment to them if someone purchases an established property.

If you want a house or unit a good mortgage broker will make it happen. And if you're serious get some input from an accountant and a solicitor

 

You make it sound like financial planners get incentive payments from other investments recommended - this has been banned for a number of years now.

And many planners recommend property. I used to be a planner under the Dover Group and they have the planners in this group are encouraged to recommend property - but not off the plan or where commissions are paid.

 

Hi Matt,

I am having great success with @Alex Straker @ HTRE (Alex posts frequently on this forum). Alex is covering all the areas you mention and offers a comprehensive service in regards to acheiving your individual financial goals.

Cheers

 

Hi,

I’m also working with @Alex Straker and going through everything and setting it all up currently. Well worth it so far! Alex posted about what he does, I’ll look for the post. I have used financial planners in the past and not scratched the surface compared to the level DH and I are going now. Also, just started working with @Rolf Latham -they are a great combination.

Good luck with whatever you decide!

Kassy

 

Hi Matt,

There are a lot of posts from @Alex Straker about what he does. It’s involved and individual so none of the posts will cover you specific situation but this is the quote I was thinking of which gives a broad overview of debt recycling. This is just one strategy he could cover with you, advice would depend on what you’re after.

Once again, good luck if you decide to go with a professional!

 

I have never had any luck with FP's. Waste of time in my opinion. I just an independant one that was past of Noel Whittakers company years ago and i was told to pay my mortgage off. $200 for that advice, marvellous! They hold no property qualifciations and thus cannot guide you here at all and are more interested in telling you to put money into useless managed funds. All you need to do is build up good quality assets and protect them with the standard products such as life insurance, wills, landlord insurance etc.

 

So because you went to one FP and didn't see any value you then extrapolate that across a whole industry to thousands of people?

 

Been to more than 1 over the years and it's always the same spill. Most are just interested in selling you something that gets them a trailing commission on. If you are interested in property they cannot offer you any guidance here as they are not qualified. How can a financial planner guide you on asset classes when one of the most powerful ones "Property" is not even on their agenda. Are their financial planners out there they can help you with wealth creation strategies in regards to property?

 

There are no trailing commissions on products anymore - except insurance. These were banned about 5 or more years ago.

I was a former financial planner and I offered advice on property. Many planners advise on property - in legitimate ways, not ones that pay commissions.

Not sure what 'qualifications' you are referring to, but planners do cover property in their courses.

 

I had a previous planner that offered advice on Property (no kickbacks), we didn’t have the cash to follow it at the time so it was advice that wasn’t appropriate to our situation but that’s another conversation.

When you choose a planner, it’s up to you to determine what your expectations are for the service whether it’s focus on debt reduction, Property, shares etc and question them going in to see if they can meet your expectations...

 

That's good to hear things have changed. The last time I spoke to a financial planner was 15 years ago.I think once you figure out how to play the wealth game you don't need a financial planner. A good mentor helps a lot.

 

Same experience went to quite a few...pretty useless lot unless you ask for Specific advise like Super related stuff. One of them I asked what they had and...they ad some difficulties answering this.....

Lots of them have vested interests and now neccessarily the clients....

 

Could not agree more with you. Why would you pay to see someone that is clearly still in their day job same as you. I want to get my wealth advice from someone that's made it and played the game. My mentors are exactly that nowadays and I am now on the right path.Like yourself you worked out property was the vehicle to get you there.

 

Two points
a) many people work even though they don't need to
b) why do boxers, and other sports people, have coaches? Do the boxers expect their coach to be able to beat them in a fight?

 

Firstly I wouldn't say many, most cannot afford to. Most Australians have no idea about money. I only have to look around the 12 people in my team to see that.
Nothing wrong with a coach, but you need a coach who knows what he's doing and most FP's clearly don't. My mentor is worth many millions.

 

Property is the vehicle...but I also plan to put some of it bonds/shares to even out the income stream....as property income can have ups and downs.

I reckon at some point 50% of my income will come from sources outside of property.

As for getting advice....sage advice. listen to people who have made it....not people who think they have made it.

For example there quite a few people crowing about Sydney property and how their incomes and growth would continue. Did they have a plan B..no...so as George Strait says....this is where "The Cowby Rides Away"...there is a message in that song.....somewhere. So it is time to day goodbye to yesterday. As the final scene plays..and the credit plays....the sad song starts to play...

 

I can't disagree with that!

But don't paint all of them with the same brush.

BTW, same can be said about lawyers and brokers too.