Financial Planning Factories - Money Tip without the Boring Stuff

It is a tough world out there.   How do you find a financial planner that you can trust?   First and foremost, we are not demigods (although I think I have met some that believe they are half human, half God).

It is not the first time you have heard me say that finance professionals cannot predict the future (obviously).   It worries me no end that people (known as prospects to the financial planner) walk into extravagant financial planning offices and think to themselves ‘Wow, this guy must know what he is talking about!’   Look he is so successful!.

Intelligent investors know if anyone possessed the ability to consistently and accurately time the market, they would be instant billionaires.   Why didn’t Warren Buffet, Bill Gates, anyone in the Top 500 Rich List walk into the same office?   Oh that’s right.. I forgot they genuinely care about the little people.  Codswallop! (not even sure if it is a word).   If that is the case, why do they need to charge ridiculous fees?  Why do they have to preach to the masses?  Why do they need to advertise to get people to attend their seminars? Read more

My son is now at Uni and I am worried about fees eroding his super savings

 

 

 

Q. My son worked at Macdonalds for 4 years and has a superannuation with employer contributions. He is now doing full time study at uni. Should he do something with this superannuation before it is eaten away with fees?

A: I just love it when people are conscious of fees within their superannuation fund. As you know there are far too many people who simply don’t care and then years later wonder what happened.

Just wish they understood that if you are in the wrong super fund, fees can easily strip 20% of your final retirement benefit (just imagine a slow drip from a tap - very soon the bucket is full and in this case the bucket belongs to the financial institution and in some cases, the financial planner). Read more

I need help Consolidating my Super?

Q. I have a few superannuation funds which I am trying to consolidate and finding the whole process very frustrating. Any suggestions?

Josie’s Answer - Congratulations on trying to organise your financial life.

As you know having a few super funds probably means that you are paying extra fees, which will only hurt you financially in the future. There may also be a financial planner or two also receiving some commission and probably not giving you any service.

The problem these days is that you need to provide documents which are certified by an acceptable person. Acceptable documents include your driver’s license, passport, birth certificate (plus many others). Read more

Accountant or Financial Planner - Which is best for me?

Q. I am confused as to whether I need to seek advice from a financial planner or accountant in relation to my investments?

Josie’s Answer - Your accountant is a great help to get through your personal finance maze.

Technically they are really good on tax matters e.g. which work expenses you can claim on your tax, but personal finance is about a lot more than tax. If an accountant does not have an Australian Financial Services License or is one of its authorized representatives, they are not licensed to provide advice on financial products. Read more