I'm Broke

OK2 · 6 August 2008

My financial advisor (Superannuation) has declared himself broke.

I asked him what he meant thinking that he had lost everything. His reply was that he could not afford to update his M5 BMW and that he was contemplating having to rent out his holiday home on the Peninsula when he was not using it.

Now I really like the new definition of "I'M Broke", perhaps a new word needs to be created to better define his meaning!!!

Tysonboss1 · 6 August 2008

OK2 said:
His reply was that he could not afford to update his M5 BMW and that he was contemplating having to rent out his holiday home on the Peninsula when he was not using it.

!!!

He probally is broke,...

There are alot of Broke high income earners with lots of expensive toys.

There is also alot of fabulously wealthy people that drive 7 year old utes, and holiday in caravans.

ROE · 7 August 2008

OK2 said:
My financial advisor (Superannuation) has declared himself broke.

I asked him what he meant thinking that he had lost everything. His reply was that he could not afford to update his M5 BMW and that he was contemplating having to rent out his holiday home on the Peninsula when he was not using it.

Now I really like the new definition of "I'M Broke", perhaps a new word needs to be created to better define his meaning!!!

He is probably one of those people who has expensive image but not much else.

The trouble with these people is all their money going into keep their status and image; BMW, expensive clothes, big house that they only use 1/2 of it etc.

but there are also cash rich people who like their toys as well but these guys dont tend to complain or show off

CAB SAV · 7 August 2008

OK2, Sack your adviser, like a lot of these debt laden ex life reps turned adviser or advisers acting on brokers reports, they have no idea. Tell him to check out ASF and see how some do it profitably.

korrupt_1 · 7 August 2008

would you trust a broke financial adviser?

wayneL · 7 August 2008

korrupt_1 said:
would you trust a broke financial adviser?

Financial Advisor = Financial products salesman (with a few exceptional exceptions)

But in fairness, being broke may not have anything to do with a lack of financial prowess. It can be from divorce, medical expenses, embezzlement, litigation, daughter's marriage costs or any number of things.

wayneL · 7 August 2008

While on the topic of FAs:

The majority of FAs here in the UK will no longer be able to call themselves "adviser" after new rules are implemented in 2009.

The basic qualification here is the Certificate in Financial Planning (CeFP), a level III qualification. There is a further qualification which is Diploma level (DipFP).

After 2009 only DipFPs will be able to call themselves Independent Financial Advisers, and only if they are fee for service and not remunerated via commission.

CeFPs and and tiey advisers will only be able to call themselves financial product consultants (salesmen), most likely with an income drop as well.

LOL

About a quarter of all CeFP "advisers" intend to drop out of the industry as a result. But the consensus is that DipFPs will rake it in... and probably give much better; and at least truly independent advice.

Someyhing which may end up going to Oz.

FWIW

Temjin · 7 August 2008

wayneL said:
While on the topic of FAs:

The majority of FAs here in the UK will no longer be able to call themselves "adviser" after new rules are implemented in 2009.

The basic qualification here is the Certificate in Financial Planning (CeFP), a level III qualification. There is a further qualification which is Diploma level (DipFP).

After 2009 only DipFPs will be able to call themselves Independent Financial Advisers, and only if they are fee for service and not remunerated via commission.

CeFPs and and tiey advisers will only be able to call themselves financial product consultants (salesmen), most likely with an income drop as well.

LOL

About a quarter of all CeFP "advisers" intend to drop out of the industry as a result. But the consensus is that DipFPs will rake it in... and probably give much better; and at least truly independent advice.

Someyhing which may end up going to Oz.

FWIW

That's interesting, would love to see this happens in Aus soon.

I got my RG146 (Diploma of Financial Planning) just recently. If this flow into Oz and kick out a lot of certified FPs of the industry, that is good news for me.

Though it will be a while before every FPs are paid by fee for hour/plan without commission.

ROE · 7 August 2008

wayneL said:
Financial Advisor = Financial products salesman (with a few exceptional exceptions)

But in fairness, being broke may not have anything to do with a lack of financial prowess. It can be from divorce, medical expenses, embezzlement, litigation, daughter's marriage costs or any number of things.

Doesnt that prove the point, you did not factor in emergency events or sh**t happen stuff.

He cant make his own plan works how can he make other people plans work
it's not him going through this sh*t happens stuff, it's everyone he has plan for as well.

Julia · 7 August 2008

ROE said:
Doesnt that prove the point, you did not factor in emergency events or sh**t happen stuff.

He cant make his own plan works how can he make other people plans work
it's not him going through this sh*t happens stuff, it's everyone he has plan for as well.

I'm not sure that that's reasonable, ROE. I've been broke following the end of a marriage, due to debts incurred by my ex which had to be shared in the wash-up. Doesn't mean that I was irresponsible. Wasn't broke for long.

As Wayne has pointed out, there are plenty of circumstances which can cause unexpected financial strain. You simply cannot plan for everything.
I daresay that if the FP concerned were to downgrade his car, sell his holiday house, he could say he was well off and without debt. Fairly obviously it was a throw-away expression and not meant to be subjected to the sort of analysis it's receiving here.

I'm Broke

OK2

Tysonboss1

ROE

CAB SAV

korrupt_1

wayneL

VIVA LA LIBERTAD, CARAJO!

wayneL

VIVA LA LIBERTAD, CARAJO!

Temjin

ROE

Julia

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