The good thing about having a financial planner was having someone to explain various things that I don't understand. Due to a lack of experience in the area, legal and financial documents always confused me, I didn't understand the system or the terminology. I can still remember trying to work out the difference between franking credits and imputation credits. So having a FP was good in that I could ask questions and they could run me through the documents, give me an understanding of the system and point out tax savings and such. But personally I don't feel this service is worth thousands of dollars a year.
Thanks mate, that was my thinking in the first place. I want to keep hearing from them, and I still want their advice, but I don't need someone to hold my hand through it all.
As far as learning the difference between franking/imputation credits and all that - is there a book that you can recommend?
especially considering ANZ just priced itself out of the fixed rate resi mortgage market. you have to ask why, and it will hit their revenue.
word is they expect their credit rating to be lowered shortly, and that would make them uncompetitive with the other banks in seeking foreign wholesale funds for fixed loans.
if blackrock don't know this, they really are behind the 8 ball.
their ANZ dividend strategy just got shredded......but don't rely on hearing it from them first.....so what's their plan B today?
ANZ shares tumble as H1 profit misses market forecasts
Thanks mate, that was my thinking in the first place. I want to keep hearing from them, and I still want their advice, but I don't need someone to hold my hand through it all.
As far as learning the difference between franking/imputation credits and all that - is there a book that you can recommend?
Have you raised these concerns with your financial planner?
Did they work the fee out on a charge per hour basis? Did they increase the fee because you have a substantial income?
I get the impression that the same firm does your accounting work? Were they open about how the fee structure would be applied when you had that work done?
Also you are liable if the accountants have dodged up the tax return, you signed it... Just be careful, the biggest deductions might not always be legitimate....
Most of the cases where financial planners have been acting dishonestly have involved large fees....
If you explain to them that while you are willing to pay, you need value for your money, you might find you wind up with either a more experianced planner or reduced fees!
Here is one of the MAJOR problems with financial planners... it is too easy to become one...
I recently paid $2750 to have a financial planner to create a Statement of Advice for me in terms of setting up a long-term financial plan.
The cost of implementing it will be somewhere in the region of $10K - and I'm baulking at it a bit. Plus $5K annually to keep reviewing it and making sure that it suits me.
I like the fact that they aren't trying to flog me any products to get comissions etc but it is a lot of money. I know that the benefits that they can pick out in terms of income protection and tax benefits will probably end up paying for itself - it's just that I'm a bit put off by the initial amount.
I just wonder whether I can do this myself and save the money...
Thoughts?
For some background I'm 29 with a high income ($150K+)
The best advice I ever got was ask your planner what he is worth, if it is less than you have, he should take advice from you.
The best advice I ever got was ask your planner what he is worth, if it is less than you have, he should take advice from you.
P86, my beef was that when we retired I went to 6 or7 FP, most was under 30 years old, the worst was West pack, I has a young girl who would not have been twenty years old. We have now done it on our own, and thank god we did not buy shares.I dont agree with that. What about high paid sports stars or people who have inherited money etc etc.
Just because you have a lot of money doesnt mean you know how to put it to best use...
Financial planning is not brain surgery, you can do it yourself if you put in the time, effort and expense to educate yourself, like most of the users of this site.
Most of my clients were people who had no inclination to take the effort but knew they should be doing something, or time poor professionals, even sophisticated investors, accountants and I even had one professional trader who wanted a second opinion.
I was surprised by the large amount of people who would put their absolute trust in someone right from the first meeting.
I dont agree with that. What about high paid sports stars or people who have inherited money etc etc.
Just because you have a lot of money doesnt mean you know how to put it to best use...
I went to 6 or7 FP, most was under 30 years old, the worst was West pack, I has a young girl who would not have been twenty years old.
The point is more important than the packaging.
I imagine she'd be like the others, just selling the bank's package.
See the point
Not one saw it coming. But more than a few here including Mr Toxic (Me)-- did.
An understandable summary.
"How will you grow your business in this economic climate"
The response is and all three I may add.
GROW? You mean survive!!!!
No I mean Grow.---Yes this F/Y we will grow again and are employing new people AGAIN.
They have no clue as to what to do to grow their companies.
This is the greatest opportunity they are likely to EVER see.
Their competitors are being crucified yet they don't have a clue of how to take advantage of the pressure the economy has placed on their competitors.
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If everyone else is doing it - it must be right.
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