This controversial announcement is great news for consumers and Financial Advice businesses who provide regular service and sound advice to their clients, and are not involved with commissions or similar payments.
Unfortunately, just because you stop paying your Financial Adviser directly, it does not mean they are not still being paid at your expense via your investments.
Hot Tip: There is no better time to review your Financial Planning arrangements.
The more new clients we see, the more we are realising there is currently a major fee grab going on with the Banks.
Let’s look at a simple example from a recent new client who had previously been to their Bank…..
$1,100,000 invested. The fee to their bank for initial advice and implementation fees was $13,000. The total ongoing investment and advice costs to their bank were an additional $19,600 p.a..
Our proposal, when our investment recommendations are implemented and our ongoing fee for service advice package is established, will save these clients over $11,000 p.a.. That’s right: a massive saving of over $11,000 p.a..
Hot Tip: When you, or someone you know, are making major decisions concerning retirement savings, always get a second opinion. Without exception!!
If you or someone you know or care about is in need of some financial planning advice, you really need to contact us.
Fee savings can vary based on a range of factors.
One of the great things about modern medicine is that there are plenty of tests available that are capable of detecting and allowing early treatment for many health conditions. The end result is that many people have an excellent opportunity to live longer and healthier lives.
Sadly, many people do not take a proactive interest in their health and get unexpected surprises when they are feeling unwell and visit their GP. It might be much better for you, or those you care about, to visit a GP on a regular basis, have a routine check up and tests in the hope of early detection of nasty health conditions, and then get early and hopefully successful treatment of anything diagnosed.
My GP tells a fantastic story of practicing what he preaches and making sure he has an annual check up and relevant blood tests. Through this approach he was able to provide an early diagnosis of prostate cancer and have it successfully treated.
If you do all you can to make sure you live a long and healthy life, make sure you also think about your retirement savings to ensure they have every chance of lasting as long as you do. One of the biggest risks current and future retirees face at the moment is that they will live too long in retirement and run out of money.
Hot Tip: Low fees, smart investment choices and sound strategic advice will assist in ensuring retirement savings last a long time. We can help you, or someone you know, with all of those.
We all know from experience that superannuation account fees in Australia are high and many people feel they pay far more than they should.
It is not well known that many Industry funds have a fee scale for their Allocated Pension accounts that are many times higher than the fees they charge on their superannuation accounts. If you study a few Product Disclosure Statements you will see what I mean.
Hot Tip: If you or someone you know is using an Industry super fund and are ready to retire, and need advice, don’t assume the Industry fund retirement options represent the best value. For quite some time there have been commission free products and fee for service financial advisers that give the Industry funds a real run for their money.