Getting Advice
Why performance based fees for advice won’t work
“About 19 per cent of investors say their preferred model for paying an adviser is performance-based fee,” according to Mark Johnston, principal of research firm Investment Trends. (Reported here today). Performance based fees will not work for most types of financial advice. Performance based fees for finance advice may only be appropriate when: The advice [...]
If your only tool is a hammer
You may be familiar with the adage that to a person with a hammer every problem looks like a nail. This is very applicable in the world of financial advice and many clients are not aware of it. Unfortunately, when you don’t know any different you are often also oblivious to the consequences, which include: [...]
An example of how DIY is costly
Do-it-yourself financial planning can be costly because often you don’t know what you need to know. With a litte more knowledge you would make a more informed financial decision that can both save and make you money. This was clearly illustrated in my conversation just now with one of the other tenants in my office building. Let’s [...]
Latest Research: You Save More by Paying For Financial Advice
Want to save more money? Then pay for financial advice. That is the one of the findings revealed in this latest research by KPMG/IFSA. Clients of financial planners on average save over $2,400 per year more.
Product Aligned Advice is (Mostly) Irrelevant
SMH article: “Finance advisers mostly a sales force, report says” is wrong and potentially more misleading to you than product-aligned advice.
Find the right property mentor
One of the messages I teach is to “Do What You Love; Outsource The Rest“. When it comes to direct investment in residential property it can be tricky to implement this due to the presence of too many biased spruikers. Neil Jenman refers to them as “selling machines” in his insightful article, which I recommend [...]
What a CFP represents
Certified Financial Planner, or CFP is the top level certification for financial planners. It takes quite a bit of knowledge, skill and experience to be awarded this certification. When seeking financial planning advice, especially for the first time I recommend that you start by speaeking with CFPs. You can find them on the Financial Planning [...]
Defining TRUE financial planning
I wish I could tell you that there was a definition of financial planning that the entire industry, regulators and government agreed upon. Sadly that level of consensus is something I can only dream about in my lifetime. To me true financial planning is about maximising the likelihood that you have the financial resources to always live the life you’d love, now and in the future. In shorthand I think of this as financial fulfilment.
Stimulate a Financial Planner
As the first of the Government’s fiscal stimulus hand outs are distributed, the Prime Minister Kevin Rudd is urging Australians to be patriotic and stimulate the economy by spending it. Retailers would love you to spend it in their shops before Christmas, but economists agree that it doesn’t really matter what you spend it on, [...]
Ord Minnett building crack advice teams
The state of Australian and International share markets has been so bad that stock broking firm Ord Minnett has formed teams to advise clients how to make money selling drugs like crack. Perhaps they have not read the excellent book “Freakonomics” By Steven D. Levitt and Stephen J. Dubner which explains that many drug dealers [...]
Creating Wealth: Should you D.I.Y. Or Outsource?
To create wealth is it better to do it yourself or outsource? Is an active approach better than passive? If you do outsource some parts, how do you know what to outsource? In this interview on Wake Up WA, I answer these questions with a unique model I have developed. Watch the video now.
Fee based advice hard to find
If you are wary of your financial adviser being biased by commissions then you will want to work with an adviser who charges fees and rebates commissions to you. But according to new research released today such an adviser may be hard to find, with only approximately 1 in 10 Australian financial advisers focused on [...]
Australia’s Top 50 Financial Advisers
Released last Friday, the February 2008 edition of The Australian Financial Review Smart Investor magazine announces the 2008 members of the annual Masterclass for Financial Planning. If you are seeking financial advice but unsure how to filter the thousands of financial advisers into ones you can trust to know what they are talking about, then [...]
Trust pros for financial advice over friends and family, survey suggests
About one in six Brits has received bad financial advice from their friends and family and have suffered financially and emotionally as a result, according to new research from the specialist mortgage provider (Birmingham Midshires)Almost one in five (17%) wasted a lot of time in the process. Just over one in 10 (12%) admitted that [...]
What is the value of financial advice?
Socially when I speak to people who have never seen a financial adviser, and are still reluctant to do so, one of the main reasons has been that they don’t see any value in using a financial adviser. Sometime they sense that an adviser delivers some benefit but that those benefits don’t outweigh the costs [...]
Twitter
Youtube
LinkedIn
Matt Hern Financial Planning
RSS
Facebook
Digg