Thoughts on my investment Strategy

Yes his fee even though flat currently equates to .17% of funds.

Couldn't agree more regarding the wealth of Knowledge from the members you mentioned and there willingness to share this with everyone. Including yourself @Zenith Chaos.

I find its not only the factual knowledge that is shared but also the sharing of ones mindset that is also very helpful. I think many of us have similar concerns / quirks in the way we perceive the world of investment and its good to know that its not only you who feels / thinks a certain way.

So thank you to all who share and contribute to this forum, especially those who have contributed to this thread about my investment trials and tribulations. Extremely grateful.

 

This is not about investment strategy as I'm not in a position or qualified to suggest what others do but what is happening within the consolidator industry or wraps, is very intriguing I think.

A lot of price pressure is happening. Around 12 months ago, I was exploring transferring over all the administrative work for holdings (personal and SMSF plus a couple of others) to a form of a wrap.

I didn't take it up as I thought the price quoted by the provider (not the financial firm I sometimes consult) was too high for what I'd achieve and what they had to do i.e. bugger all really. I had a chat with the FP recently and this matter was raised. The cost I was originally advised has just about halved. And that within the space of 12 months. Still not going to do it though. Just not yet.

It would not surprise me this pricing pressure will continue and costs continue to drop.

 

Yes prices are coming down significantly. I’m switching to BT panorama. Cost is .15% capped at $1500 p.a plus a $540 account fee. I also added my and the wife’s super accounts to the platform. The cost is another $540 p.a per account. The $1500 annual fee cap is across all 3 accounts.

Based on current fum over the last 12 months this will reduce my wraps fees by 50%. As the fum grows the benefit of the new fees only grows.

 

Mate just dont hold too much in the cash account. I think they pay 0.5% but charge 2.1% on the balance. Is that correct? Apart from that it looks like a competitive product for larger amounts that is now up to date as well.

 

Not sure the interest rate they pay but I’m sure it’s dismal. On the new platform the fee would be .15% fee for cash account holdings if your fum balance is below 1mill. Nothing once you reach over 1 mill.

In saying that I never hold cash in the wrap. UBank is best at 2.87%. Above $200k I hold in a westpac esaver account. I think around 2.5% is what westpac pays at the moment.

Never been a big fan of holding cash. Rather be all in all the time. Though I am building a small holding at the moment. Max will be 5 years living expense.

 

I’ll only feel justice has been served when the fee gouging industry goes from this:



To this:

 

I see. So you want the yacht while expecting the bloody poor manager* to enjoy the rowboat? Greedy, greedy, greedy. Hehe.

* "bloody poor manager" can be read as a more appropriate phrase than "poor bloody manager" if you get my drift.

 

He he, pardon the pun.

If franking credit refunds are abolished this will be all the boat I can afford according to Geoff Wilson:

 

LOL. Go rubber ducky.

If us grey group had our way, should the franking rate be reduced to 25% there would be a claim for "our" leader to argue it's so unfair as all planning was done on a 30% rate so the Gument (taxpayers) should kick in the extra 5%.

 

And fair enough. It’s our right as being old and grey to complain about everything.

 

At least it has an electric motor & not oars like the 'poor manager's'.

 

That’s because Labor’s only removing franking credit refunds. If they remove franking credits all together then it’s back to using oars as we won’t be able to afford to run an electric motor.

 

Currently breaking up with our financial advisor of 30 years. Lovely chap but I probably could be retired by now if I’d never met him.

 

Did you feel compelled to stay with him so long because of the fear of offending him?

 

Partly yes that was the reason. The break up has been a decade in the making as we have invested outside his advice and now we only have 2 insurance policies left.

 

I had a client like that. Had a terrible accountant who was making all sorts of mistakes but he feltf he couldnt leave because of the long relationship

 

I thought the recent interviews with Platinum and Magellan CIOs might interest some of you here. Most interesting I found about different approach to investing and when Hamish was saying about "US domiciled" companies and geographical investment strategy.

 

I "liked" this but I didn't "like" your FAs performance.

 

Update:

I have decided not to wait 30 years to make a change. 3 years is long enough for me.

Looks like we will be moving on from our current advisor over to PC’s very own @Alex Straker. After 3 years with the current advisor and only 3 over the phone discussions ( 1 hour each call ) with Alex, I feel Alex understands our situation and needs going forward better than the current.

Will spend the next few weeks getting everything sorted and transitioned then will actually look at flying over from Sydney to the Gold Coast to meet Alex. Always like to meet someone face to face who I’m going to Intrust in guiding my fianiancial future.

Without it coming across like I’m trying to advertise for @Alex Straker. I have to say in only a few discussions so far I am super impressed with his understanding of the investment / financial / economical sphere and his ability to read you as an investor and understand what your looking for.

Edit: and thank you to @Nodrog for encouraging me to touch base with@Alex Straker.

 

@Big Al, I’m sure you won’t be disappointed. Alex is anything but your typical financial advisor.

@Alex Straker, were’s my commission? Unlike @Snowball cheques not accepted. Liquidity (alcoholic beverages) is king when it comes to commission.