- Joined
- 27 December 2010
- Posts
- 1,729
- Reactions
- 48
Most are not qualified they hide behind licencing given to their dealer principals --- and as such are only able to sell their products and remain compliant to the conditions of coming under the umbrella of that licence.
They do these risk evaluation models which are just plane rubbish and charge $500-$1000 for the privilege. Its nothing more than you disclosing your financial position now and where you'd like to be---you can do that over coffee for $7
Then your shoveled into a fund which gives them the best return on commission and once a year your charged $500- $1000 to get the results and be advised if there is a more highly paid commissioned fund you should be transferred into.
Ask about Property and you get a blank look---No commission.
Ask about investing in a few stocks and Blank looks -- no commission.
Ask about Life insurance and Wage protection and you'll have to sit through the spiel at $500 a shot.
Most everything else your going to have to pay to sit and listen to industry jargon while they try and fit you into a commissioned product of some sort which will answer your question.
One year I tried 3 of these guys out
2 I knew and 1 I didn't I paid $1000 + GST each for them to advise me on how I should set myself up for retirement.---Perhaps they knew something I didn't or I wasn't doing things as efficiently as perhaps I could.
Not 1
Talked about passive income (I have 2 streams not fully utilized and one in the wings ready to be un leashed when I retire/semi retire).
Everyone of them wanted me with (at that time 4 yrs ago) $50K in a managed super fund and the same for my Paid wife.(from the Company). Happy days they had commission cheques well spent.
My response was to continue with my own SMSF.---Couldn't see and still cant see any benefit what so ever.
Plus I'm not going to place my eggs in a fund that has a even a slight chance of going broke.
I can do that myself!
Tech/a - like I said, I share your concerns with regard to the way advice is administered and paid for.
As for what it takes these days to become a "qualified" FP is vastly different to the couple of questions alluded to in the picture above.
As for the fat-cats which snuck in to these dealer groups in the past, this loophole is closing and any new entrants (at least with the bigger groups) are forced to much higher standards than ex-fridge salesmen.
Im in agreement with Hodgie on the fact that of course there are crappy advisers, just like there are crappy doctors who charge excessively to google your symptoms and push their scripts that they too get kickbacks from (sound familiar)...but there are also good advisers out there!