Should I not reveal all to my advisor so they don't over charge me?

There are plenty more truly independent planners out there. Not receiving commission and not owned by banks.

 

If you are savvy enough to ask the question, then you are savvy enough to know it is high risk not to diversify advice+investments. There are so many bad stories out there. I would give them enough to make it worthwhile.

 

You have mentioned over some threads that you like PTs approach. Have you been t one of his seminars? I am aware that he works with one or two advisors and is happy to talk with participants who his advisors are and why he uses them. You could attend one of his sessions, ask him some questions around your approach during lunch and understand who his advisors are and meet with them.
You and the advisor need to be on the same wavelength. I recently stopped seeing my advisor as we weren't aligned in our approach (I kept asking for inclusion of ETFs and LICs in the mix, and he would only go as far as including a Magellan fund, none of the established LICs).

It sounds as though you're wanting to bounce ideas off another person. I decided to drop my advisor when I mentioned ARG, AFI, BKI to them and they wouldn't go there. Also be really clear that it will not be an ongoing relationship and that you will be using your own platform to own the shares through. They may want you to sign up to use their platform, which I understand they may get an ongoing payment through?? (not sure) and requires you to buy and sell the shares through them.

 

Not yet. I've been reading his book and watching some of his videos.. I'm waiting for one of his seminars to pop up then I'm going to go.

Not so much bounce ideas. I just want to be set up with a Portfolio. Because I want to invest a large amount I want to make sure its in order and well balanced. I just don' trust myself to do this regardless of how much I read and learn.

If I was to invest say $50k, I would simply buy some VAS and VGS and some CBA and NAB shares and thats that.. Then with my next $50k I'll buy some MLT, ARG and WHF.. Even then I would be concerned that I am buying the same thing from different companies and would want to look into the mix further.

So I do have some idea, a little bit.. Might not be perfect but at least it's something.. But to invest over $1m I'm just not confident at all.. Hence the need for an advisor of sorts..

Yes, you nailed it there.. this is what all the advisors I have seen so far are wanting to do.



-Frank

 

This could also turn very quickly into a feeding frenzy and not for you...

Everything one reads these days is so focused on year-on -year growth with a blend short-termism to "KEEP" share holders happy don't fall into that lead them up the garden path and slam the gate "TRAP" that is common and dominate the investment landscape.

If you intend too drop that amount of cash on the table and you compare long term valuations with current multiples and from your posts and the experience from people within this site that has been handed to you on a plate..It's time to stand back and look at yourself and what you intend to do,myself I would not pay one cent for other opinions and go it alone as a stand-alone my way investor ..inho.

 

That advice about - if you want a PT approach - find out who advises PT and use them. That's good.
In your shoes I would do that.

 

If an advisor takes a success fee, or a percentage based fee, pending the clients decision they are not independent.

 

That sounds like a good idea..

I was under the impression that Peter Thornhill is his own advisor. I didn't think anyone advised him at all. This is interesting


-Frank

 

In Peter's case apart from perhaps wanting greater simplicity (less direct stocks but more in their LIC holdings) we need to remember that we are investing not just as individuals but for many of us our partner and perhaps family as well.

If your partner isn't interested in investing you need to plan for what happens if you're not around. So either keep it simple or do as Peter has done and have someone who can manage your investments when you're gone. He's thinking of his wife, family and charities.

Be considerate, don't leave your love ones and / or estate with a mess of complex investments / strategies to sort out.

 

This is an interesting topic.. How do we leave our portfolio to family? My family wouldn't have the faintest idea about shares. I'm guessing if I wasn't around that they will probably sell the shares and buy a property that they can touch and see. Rather than reap the dividend benefits that I'm setting up.

Might be a good idea for a family discussion once I get this all set up.


-Frank

 

Leave to a testamentary trust under the will and put some restrictions on what they can do. You could even appoint an independent trustee.

 

I had a feeling you would have a solution for this

That idea sounds like a plan, thanks.


-Frank

 

A bad one.

 

Hi WATTLEDO

Why is it a bad idea? I wish I had an estate I inherited left to me via a Testamentary Trust and mine is a simple situation. Frank's situation is not so simple, he can ensure a TT carries out his will after he passes through the terms of the Trust.

I would very much like to hear why you think it's a bad idea as I will be setting one up for my offspring and any information is appreciated. My advisor recommends the TT route and my own research tells me he is pretty much spot on.

 

Hi Ross

Could you perhaps give an exact example, say the difference between an investor with $500k and another with $5mill.
I am very interested in your take on the different investments as I am sure Frank is.
I'll show my hand for fairness. I would invest the first 3mill this way. 1mill VAS, $1mill VGS and 1millCBA, the rest into a LIC maybe ARGO because I like the name.
If Frank is like me then that's enough to thinks about.

Your take is appreciated.

 

Hope your advisor is a lawyer

 

One school of thought is a bucket theory. You should invest 3 years of your retirement salary in government protected stable assets, then another 3 years in investment grade short dated fixed interest and the rest in growth style assets.

As you run out of money for the years you stop investing. You might only have 5 years of investable assets so everything is safe fixed interest.

Different people have different levels of risk. So you might have only two years of future income in cash like assets and so forth.

The more you have to invest the more you allocate to risky assets.

 

You do what you like, I don't know. But I do know that money can be used to control, especially family members. As long as you're not controlling from the grave, you have my blessing.
Peace be with you.

 

good point, dont leave a mess