If we look 10-20 years into the future, will consumers accept financial advice from institutions who own investment products?

No one knows what the future holds but I suspect a lot will change.

Powerful lobby groups and vested interests will make change difficult but ultimately it is consumers who can force change by demanding outcomes that they believe represent exceptional value rather than those driven by sales and marketing.

Governments will periodically dance around the hot issues with Legislation but ultimately it is consumers who force real change once they understand the issues and make different choices.

There is no doubt in my mind that financial advice recipients of the future will be more financially astute and attracted to the boutique financial adviser businesses rather than the big institutions.  This in turn will force a change in the way financial advice is delivered because consumers will demand a forced separation between advice and product.


What Does It Really Cost Retirees To Live In Retirement?

According to new figures from the Association of Superannuation Funds (ASFA), the costs of living in retirement have risen further. The following table provides a summary of the ASFA findings for retirees who are debt free home owners:Retirement Costs



A Must Ask Question When You Are Seeking Financial Advice!!

When people are initially seeking Financial Advice, we are often asked how much will it cost? Unfortunately, this is not the right question to ask.

When you seek financial advice there are potentially three sets of fees to consider: an initial advice fee, an implementation fee and an ongoing advice and investment fee.

A great question to ask is: “If I was looking for financial advice to invest “$$$,$$$”, how much is it likely to cost me for the initial advice fee, the implementation fee and the per annum ongoing advice and investment fee?” Once you have these three sets of fees you are then in a much better position to shop around and compare fees.

When you have done your shopping around, contact the market leader in financial advice: The Financial Advice Shop.


Is There A Financial Planning Elephant In The Room That Nobody Is Talking About?

The current Financial Planning debacle at Commonwealth Bank raises a broader question about whether consumers can ever feel their interests are best served by dealing with a major institution.

While large institutions continue to be able to be product manufacturers where they can bury margins in their product and have employed financial advisers that can be influenced by company policy, is the industry model flawed because the institution has too much leverage over the employee?

This should be a tipping point for a further shift in consumer sentiment away from the big institutions and a move towards the smaller boutique Financial Planning businesses.

When a golden opportunity comes along you don’t knock it back: you grab it!!  It only takes a phone call to see how different things can be.




Five Hot Tips For The New Financial Year!!

  • Tip#1. Make sure you have some goals to achieve over the next 12 months and measure your success.
  • Tip#2. Every time you seek advice or assistance ask yourself: is this person a professional or a salesperson?
  • Tip#3. Look closely at your investments and make sure you are not paying high fees and commissions to people you do not even know.
  • Tip#4. When you are making plans for the future always consider what can go wrong and develop an appropriate exit strategy.
  • Tip#5. Make smart decisions every day of the week and always remember: nothing great was ever achieved without enthusiasm!