I went to see a financial planner the other day as I hope to retire in about six years and thought some planning may help.
The planner is a fee for service, that is, he receives no commissions from any products he recommends. He has charged a once off $3000 for the plan. He says that six monthly reviews are free of charge and any extra work is charged at $220 hour.(he is not expecting any extra work for awhile...subject to my personal changes).
Does this sound reasonable?
Collo.
JayDee said
12:05 PM Jul 1, 2014
Cello,
Don't know how reputable your guy may be, but not paying any$$$ com. sounds great, or does it??? but, I would be weary of this. Just be careful that he does not want to put you into some scheme where he gets large commission from the other party in the scheme. If so, I doubt that he will have your interest at heart, as the $3000 up does not generate him much cash flow. He would need a hell of a lot of clients at $3000, especially if as he says he does not see much need for further consolation. he is getting at you on the hourly charge.
But, mate, at the end of the day, it is your call and as long as you can go to bed and sleep soundly, that is the true test.
Get a second opinion on your retirement future.
Jay&Dee
Gunsondeck said
01:33 PM Jul 1, 2014
Hi, I used the service of a financial advisor about eight years ago, free of any charges and it was apart of the Centerlink service. Worth a phone call to your local C/L to see if it's still available.
G.
deverall11 said
01:40 PM Jul 1, 2014
Most financial planners have a bad reputation probably because some have not done the right thing by their customers. We don't use a financial planner because just about every time we spoke to one, we seemed to either know more or we already knew. If you are retiring in six years, I do not believe there are a lot of opportunities in such a short time.
I would be looking at an investment property. Not so much at the capital gain but more towards rental income. Get it right and it's like having a pension.
Larry
Mike196 said
01:53 PM Jul 1, 2014
Went down the route of investment properties with around 6 or 7 years to go to retirement, wasn't worth it. After doing our Tax one year we were asked if we would like to talk to one of their "Financial Advisers" we did, and he proceeded to tell us how successful our investment was with absolutely no negatives.
When I asked a reasonably simple question the hands went up with, "Oh I'm not licenced Financial Adviser so I can't answer that." Lost around 10 grand on one of the properties and paid a large wad of Capital Gains Tax into the bargain.
I went to the Bank for a second opinion, (seeing we were into them for a large sum) best thing I ever did. We've since done well with the Bank's advisors, no complaints what so ever.
Regards,
Mike.
rowdy said
01:56 PM Jul 1, 2014
After watching the four corners program on the ABC in regards to financial planers at the commonwealth bank ,be careful
deverall11 said
02:00 PM Jul 1, 2014
Mike196 wrote:
Went down the route of investment properties with around 6 or 7 years to go to retirement, wasn't worth it. After doing our Tax one year we were asked if we would like to talk to one of their "Financial Advisers" we did, and he proceeded to tell us how successful our investment was with absolutely no negatives.
When I asked a reasonably simple question the hands went up with, "Oh I'm not licenced Financial Adviser so I can't answer that." Lost around 10 grand on one of the properties and paid a large wad of Capital Gains Tax into the bargain.
I went to the Bank for a second opinion, (seeing we were into them for a large sum) best thing I ever did. We've since done well with the Bank's advisors, no complaints what so ever.
Regards,
Mike.
Mike sorry to hear you had a bad experience with investment properties, but I did say in my post, don't be too concerned about capital gain and the need to get it right. I have had investment properties ever since I started work. Some went wrong and you learn as you go.
Larry
Roving-Dutchy said
02:24 PM Jul 1, 2014
Centrelink run seminars all over the country re planning your finances for retirement they are well worth your time to attend, contact your nearest Centrelink office to find out when the next one will be in your area.
You can also make an appointment to see a Centrelink financial planner for a one on one consultation and it is entirely cost free, it is probably best to attend the seminar first as you will gain a lot of knowledge that will help when you finally talk to the financial advisor.
Take great care when choosing a private financial advisor as some are good and many are utter frauds and their main aim will be to fill their own pockets and lighten yours.
Cheers
David
Newgale said
02:36 PM Jul 1, 2014
Hi
Ultimately it is worth going to a truly independent adviser. These are relatively few and far between at the moment, but charge for their service and get absolutely no commission from third parties. Their advice is therefore absolutely impartial. I have used Roskow Independent Advisory (www.roskow.com.au/) and found them excellent. They are based in Brisbane, but I believe that you could Skype them.
Regards
Sally
neilnruth said
02:48 PM Jul 1, 2014
We didn't get much service from our financial planner. And a friend took his funds out of his planner's control as it was costing too much. Take account of some of the above advice and think it through for yourself. We read a lot of info and managed to do OK on our own. Centrelink is a good starting point if it's still available as Gunsondeck said.
-- Edited by neilnruth on Tuesday 1st of July 2014 02:49:22 PM
Mike196 said
03:50 PM Jul 1, 2014
G'day Larry,
Our main problem was we got into it way too late in life to be able to achieve any real gains. The one good thing that came out of it was we were able to pay off the house just B4 we retired and had enough (spare) money in the bank to get the Van and Tow Vehicle. Was just putting out there that our Bank has done OK by us (as an alternative) and I suspect that current advice given by Combank would be a bit different to what was given B4 the collapses.
Regards,
JohnR said
09:10 PM Jul 1, 2014
Collo
(My career was 34 years in the Banking & Finance Sector).
This is not the correct forum for such advise in relation to such important matters. however, in saying that the forum members who have suggested Centre Link are pointing you in the right direction. My suggestion would be firstly to seek advice via your Super Fund, in particular if your super is with an Industry Fund.Please note individual circumstances are different, however financial planners are probably required when investments are varied and require regular maintenance.
Check Centre Link & talk to your Super Fund.
JohnR
Aus-Kiwi said
10:18 PM Jul 1, 2014
I talk to my accountant.. When you retire doesn't mean you stop being a business man ( at least) for yourself, family !! All the rules and regs up on gov sites these days..
Kendo said
10:31 PM Jul 1, 2014
Collo, I'm a part of this forum because of our financial planner, and yes the fee you quote is in the realm that he charges.
The advise given in this thread is all relevant. What you do is a very individual choice. Arm yourself with as much information as you can get, and make your decisions as wisely as you are able.
A friend recommended "my guy" about 25years ago, we meet every 3-4 years if there isn't an urgent need to change something in our plan (usually a written explanation of what he suggests, sign a form and send it back), and he has never steered us wrong. As for the fee I think he has charged us the full $3k fee twice in all that time, usually it's a few hundred $'s for a "checkup", and the choices he has advised far outweigh the fee he has charged.
There are different ways to invest and here you probably need to make you most important decision. Do you seek high risk/high gain investments, a balanced plan, or rock solid investing with small return. This is probably a very simplistic was to look at it and someone like JohnR could probably give you many more ways to invest your money.
I would freely admit we have been very lucky with the adviser we have, we chose a balanced investment plan and always took the view we wanted to "be comfortable" in our later years not necessarily filthy rich (although a lottery win wouldn't be frowned upon ).
Early last year we last went and saw "our guy" for a "checkup" as it was 3 years before my wife wanted to retire and we just wanted to check if we had things right for that to happen. During our meeting he asked us what we wanted to do long term? "When we retire we want to buy a 4x4 and a caravan and tour around" was our reply. His advice....."F#@&%K it, you could be dead next year, Do it now!". So we did! (re-mortgaged the "paid off" house, bought a triton 4x4 ute, and a Jayco campervan, which is now a Pop Top caravan), and we love every minute we're out in it.
Good luck with your choices, listen to others and don't be put off by the fees they might charge especially if you can get a good advisor to help you.
Jeff
_wombat_ said
09:04 AM Jul 2, 2014
JohnR wrote:
Collo
(My career was 34 years in the Banking & Finance Sector).
This is not the correct forum for such advise in relation to such important matters. however, in saying that the forum members who have suggested Centre Link are pointing you in the right direction. My suggestion would be firstly to seek advice via your Super Fund, in particular if your super is with an Industry Fund.Please note individual circumstances are different, however financial planners are probably required when investments are varied and require regular maintenance.
Check Centre Link & talk to your Super Fund.
JohnR
Why is this forum "not the correct forum for such advise in relation to such important matters." ? members on this forum have been through these financial situations and can share their experiences, however I do agree with your suggestion about CL and would recommend them.
Now to answer Collo's question, What do financial planners charge? TOO BLOODY MUCH, IMHO
I went to see a financial planner the other day as I hope to retire in about six years and thought some planning may help.
The planner is a fee for service, that is, he receives no commissions from any products he recommends. He has charged a once off $3000 for the plan. He says that six monthly reviews are free of charge and any extra work is charged at $220 hour.(he is not expecting any extra work for awhile...subject to my personal changes).
Does this sound reasonable?
Collo.
Don't know how reputable your guy may be, but not paying any$$$ com. sounds great, or does it??? but, I would be weary of this. Just be careful that he does not want to put you into some scheme where he gets large commission from the other party in the scheme. If so, I doubt that he will have your interest at heart, as the $3000 up does not generate him much cash flow. He would need a hell of a lot of clients at $3000, especially if as he says he does not see much need for further consolation. he is getting at you on the hourly charge.
But, mate, at the end of the day, it is your call and as long as you can go to bed and sleep soundly, that is the true test.
Get a second opinion on your retirement future.
Jay&Dee
Hi, I used the service of a financial advisor about eight years ago, free of any charges and it was apart of the Centerlink service. Worth a phone call to your local C/L to see if it's still available.
G.
I would be looking at an investment property. Not so much at the capital gain but more towards rental income. Get it right and it's like having a pension.
Larry
Went down the route of investment properties with around 6 or 7 years to go to retirement, wasn't worth it. After doing our Tax one year we were asked if we would like to talk to one of their "Financial Advisers" we did, and he proceeded to tell us how successful our investment was with absolutely no negatives.
When I asked a reasonably simple question the hands went up with, "Oh I'm not licenced Financial Adviser so I can't answer that." Lost around 10 grand on one of the properties and paid a large wad of Capital Gains Tax into the bargain.
I went to the Bank for a second opinion, (seeing we were into them for a large sum) best thing I ever did. We've since done well with the Bank's advisors, no complaints what so ever.
Regards,
Mike.
Mike sorry to hear you had a bad experience with investment properties, but I did say in my post, don't be too concerned about capital gain and the need to get it right. I have had investment properties ever since I started work. Some went wrong and you learn as you go.
Larry
You can also make an appointment to see a Centrelink financial planner for a one on one consultation and it is entirely cost free, it is probably best to attend the seminar first as you will gain a lot of knowledge that will help when you finally talk to the financial advisor.
Take great care when choosing a private financial advisor as some are good and many are utter frauds and their main aim will be to fill their own pockets and lighten yours.
Cheers
David
Hi
Ultimately it is worth going to a truly independent adviser. These are relatively few and far between at the moment, but charge for their service and get absolutely no commission from third parties. Their advice is therefore absolutely impartial. I have used Roskow Independent Advisory (www.roskow.com.au/) and found them excellent. They are based in Brisbane, but I believe that you could Skype them.
Regards
Sally
We didn't get much service from our financial planner. And a friend took his funds out of his planner's control as it was costing too much. Take account of some of the above advice and think it through for yourself. We read a lot of info and managed to do OK on our own. Centrelink is a good starting point if it's still available as Gunsondeck said.
-- Edited by neilnruth on Tuesday 1st of July 2014 02:49:22 PM
G'day Larry,
Our main problem was we got into it way too late in life to be able to achieve any real gains. The one good thing that came out of it was we were able to pay off the house just B4 we retired and had enough (spare) money in the bank to get the Van and Tow Vehicle. Was just putting out there that our Bank has done OK by us (as an alternative) and I suspect that current advice given by Combank would be a bit different to what was given B4 the collapses.
Regards,
Collo
(My career was 34 years in the Banking & Finance Sector).
This is not the correct forum for such advise in relation to such important matters. however, in saying that the forum members who have suggested Centre Link are pointing you in the right direction. My suggestion would be firstly to seek advice via your Super Fund, in particular if your super is with an Industry Fund.Please note individual circumstances are different, however financial planners are probably required when investments are varied and require regular maintenance.
Check Centre Link & talk to your Super Fund.
JohnR
Collo, I'm a part of this forum because of our financial planner, and yes the fee you quote is in the realm that he charges.
The advise given in this thread is all relevant. What you do is a very individual choice. Arm yourself with as much information as you can get, and make your decisions as wisely as you are able.
A friend recommended "my guy" about 25years ago, we meet every 3-4 years if there isn't an urgent need to change something in our plan (usually a written explanation of what he suggests, sign a form and send it back), and he has never steered us wrong. As for the fee I think he has charged us the full $3k fee twice in all that time, usually it's a few hundred $'s for a "checkup", and the choices he has advised far outweigh the fee he has charged.
There are different ways to invest and here you probably need to make you most important decision. Do you seek high risk/high gain investments, a balanced plan, or rock solid investing with small return. This is probably a very simplistic was to look at it and someone like JohnR could probably give you many more ways to invest your money.
I would freely admit we have been very lucky with the adviser we have, we chose a balanced investment plan and always took the view we wanted to "be comfortable" in our later years not necessarily filthy rich (although a lottery win wouldn't be frowned upon
).
Early last year we last went and saw "our guy" for a "checkup" as it was 3 years before my wife wanted to retire and we just wanted to check if we had things right for that to happen. During our meeting he asked us what we wanted to do long term? "When we retire we want to buy a 4x4 and a caravan and tour around" was our reply. His advice....."F#@&%K it, you could be dead next year, Do it now!". So we did!
(re-mortgaged the "paid off" house, bought a triton 4x4 ute, and a Jayco campervan, which is now a Pop Top caravan), and we love every minute we're out in it.
Good luck with your choices, listen to others and don't be put off by the fees they might charge especially if you can get a good advisor to help you.
Jeff
Why is this forum "not the correct forum for such advise in relation to such important matters." ? members on this forum have been through these financial situations and can share their experiences, however I do agree with your suggestion about CL and would recommend them.
Now to answer Collo's question, What do financial planners charge? TOO BLOODY MUCH, IMHO