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What makes a good financial planner?

Discussion in 'Property Finance' started by Ariel636, 23rd Jul, 2015.

  1. Ariel636

    Ariel636 Member

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    Hello everyone

    Not sure if this is in the right section or not. There was no specific section on financial planning.
    As the thread title suggests, what makes a good financial planner?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I am a financial planner, but not a very good one, but I am good at the legal aspects of financial planning.

    I see a lot that are terrible and some that are good. The good ones have good technical knowledge of not only financial planning areas, but also the legal and tax side (though they may not give legal and tax advice). They need to know the areas they advise in.

    you also want to avoid the salesy types - former bankers can be like this. I have seen planners that 'sell' insurance, but have no idea of the tax and estate planning aspects such as not knowing how insurance would be taxed at death, where it is paid - inside super or outside etc.

    If they are advising on super then they should know the SIS Act back to front and know about anti deteriment benefits, estate planning aspects, trust law aspects etc. I have met planners who do not know how to look up legislation, and who cannot read legislation. You don't need to be a lawyer to read legislation either - tax agents do it all day long.

    Also I guess it all depends on what you are looking for in a financial planner. I constantly get contacted by people wanting 'financial planning advice' when it is actually legal advice they are after, but they do not know this.
     
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  3. Rixter

    Rixter Well-Known Member

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    A good financial planner is a planner who doesnt need to be a financial planner anymore. :)
     
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  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    What are you seeking from a planner ?

    One of the problems with FP is that everyone thinks they are all the same. Its a bit like having a leg muscle tear and booking in to have massage therapy to find its a brothel.
     
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  5. willair

    willair Well-Known Member Premium Member

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    You never know the people that work within those areas may be good at planning they must understand cashflow,unless you end up falling in love with a prostitute..
     
  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Hard to get life cover after the blood test though.
     
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  7. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Yeah, you would have to think that any seriously good financial planner would actually be making a loss running their business because they're selling their time too cheap.
     
  8. Rixter

    Rixter Well-Known Member

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    If they're still selling their time because they have to for income they're doing something wrong.
     
  9. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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  10. Harry Goyal

    Harry Goyal Member

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    A good financial planner must be active towards whats trending in the finance industry, must be able to understand the client's financial situation well and most important, should be authentic.
     
  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    No. To execute/implement a financial plan takes time and money. They can't just instantly leave as soon as they become a FP.
     
  12. The Falcon

    The Falcon Well-Known Member

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    I think there is some confusion as to what a good advisor is. Their job is not to lever you up and hope for the best, that's the job of the spruiker.

    Basically, if you don't have any cash, the only advisor you will get is one you don't want. ie. a product flogger. In that case, you don't need an advisor. They cannot make money fall from the sky.
     
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  13. Rixter

    Rixter Well-Known Member

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    Doh. goes without saying...thus the word 'still'.
     
  14. D.T.

    D.T. Adelaide Property Manager Business Member

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    So if that's their profession and they're following a good plan (written by themselves and like most plans probably takes 10 yrs), how do you suppose they'd *still* be a FP during those 10 years but not a good one since they're still working?
     
  15. Rixter

    Rixter Well-Known Member

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    When a FP no longer needs to work for income.
     
  16. D.T.

    D.T. Adelaide Property Manager Business Member

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    But then they wouldnt be an FP :confused:
     
  17. Rixter

    Rixter Well-Known Member

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    That's my point DT...They dont need to work for income. They've attained the passive income. They're working for other motivations.
     
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  18. sanj

    sanj Well-Known Member

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    maybe not need to be but nothing wrong with still choosing to be.
     
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  19. Rixter

    Rixter Well-Known Member

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    Thats exactly my point.
     
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  20. sanj

    sanj Well-Known Member

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    sorry i realised that after! totally agree