Who do you use for advice on structuring your portfolio?

As the title suggests, do you use your mortgage broker, financial adviser, solicitor or accountant? Or do you seek advice on one issue from some/all of the above?

We find it difficult to know where to go/who to seek advice from as the roles tend to overlap.

For example, we are drawing equity from future PPOR (currently an IP) for a QLD purchase. We did not split the loan initially (settled in Jan) and are looking to do so now to draw a clear distinction between funds used for QLD purchase and funds owing on the PPOR.

We also have a family member transitioning to retirement who will most likely live with us in the future and need to seek advice on whether or not to rent out their property/build a granny flat/sell/transfer to a family member.

 

Structuring is legal advice because it relates to ownership. There are also tax aspects which is also legal advice but which tax agents can also advise on.

The lending aspects are credit advice wjich only a mortgage broker can advise on.

Super advice is financial advice which only a financial planner can advise on. Accountants can currently give incidental advise on some aspects of super.

Social security advice is legal advice which lawyers can give but more commonly this is something fiancial planners advise on but i dont know under what authority that they can do this.

 

I believe accountants and tax solicitors are are the only ones licenced to give advice on this in various forms.

That said, mortgage brokers and financial advisors should have a good working knowledge of how to implement appropriate structures.

What often occurs in practice is as a mortgage broker we point out some of the potential tax and structuring issues with the caveat to get properly qualified advice from your accoutnant or solicitor. Lots of people see us without getting (or even knowing about) properly qualified advice so we give them questions to ask the appropirate people. From there we build that advice into the loan structuring as appropriate - assuming they actually do go to the time and expense of getting the proper advice (which is rare).

Also keep in mind the context in the manner of which each profession can give advice, which influences the advice they give.

Accountants focus on tax minimisation.
Solicitors focus on risk mitigation.
Mortgage brokers focus on meeting lender policy to get the loan approved.
Financial planners focus on wealth protection.

Sometimes these things are in direct conflict. A common example is an accountant will minimise the tax of a small business owner to the point where a mortgage broker can't qualify them for a loan. Good advice doesn't always fit the bigger picture.

People need to get well rounded advice and learn when to take it and when to ignore or modify it. Not an easy task. In my engineering days we had a saying. You can have it cheap, on time and good qualify. Pick two.

 

Thanks Terry, have you had a chance to look at the last PM I sent you? Accountant seems to think it will be okay, but then again that's why I've posted this, not sure if he is the right person to provide that advice.

 

We are hoping to have it all resolved soon but still in the team building stage. It's hard to find good people

 

The problem with mortgage brokers giving tax advice is that they are not licenced and not covered by insurance and they often are incorrect in what they say. It is very dangerous to say that xxx but you should check with your lawyer. This is because most times the client wont check. They also think that a mortgage broker is a professional and may think they can actually give such advice.

 

What would be the difference between an adviser and a mentor?

 

Taking tax/legal advice from a banker/mortgage broker is akin to taking share trading advice from a taxi driver.

Both proffesionals in their field - no doubt - but generally unqualified to dish out such information.

I have heard many bankers get questioned on tax structures of loans and a common response is "no - its ok, I have done it this way lots of times and it is fine"

Blacky

 

Advisors would be legally qualified to advises in their particular areas.

 

We have a financial planner and a tax agent (who is also a property investor) and each provides their own advise pertaining to their field and review the others work.

 

Most important: Myself
Second important: free advice on this forum (PMs to certain guys)
Third: my accountant (who is probably less knowledgable than me in legal stuff), and my lawyer (who is less knowledgable than me in accounting stuff).

 

It really does pay to educate yourself as much as you possibly can. Reading as much of the forum as you can manage will give you a very good grounding.

But just remember you dont know what you dont know.

 

Agree.

And sometimes its because they don't want you to know.

 

And let's be fair when it comes to tax stuff not even every accountant knows. The amount of grey around taxation and "private rulings".etc. Sure some stuff is a no brainer but other stuff is wide open to interpretation. Realisation of an asset, capitalizing interest, claiming of a main resident.etc are all grey areas where one could argue they are exempt from tax whilst others will argue they are not.

 

One charges for their advice.

 

Who is this 'they' you refer to?

 

IMO, people who have ulterior motives that aren't in the best interests of the consumer.

 

Yes good point. The only thing I'd say is, you get the most out of an expensive advisor when you know what you're talking about.

 

Yes that is for sure.

 

I definitely in the Financial Planning camp on this one. I did a dual uni degree Financial Planning & Investments and majored in Accounting, it also covered law subjects and financing. Your question is exactly what Financial Planning is about, wealth creation, advice on portfolio diversification, investment risk, returns etc. If you have a good accountant they can help with this but this would be because they are interested in this area more than because they have been specifically trained in this area (eg Investments). Lawyers/solicitors great with estate planning and often FPs refer client to them for estate planning however again unless they had a specific interest in investing they have enough other things to keep them occupied in their profession. Financial Planners whilst some like to recommend managed funds and sometimes shares and seem to be 'salesy' the training and education is all about what you are asking, risk analysis and diversification of the portfolio taking into account clients personal risk appetite. Looking at budgets, structuring portfolios for tax etc. The trick is you just need to find a good one, so like other professionals you use, probably a personal recommendation would be best.