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Financial advisors reaping benefits of stockmarket slump

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Simon Hampel, 15th Jul, 2008.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Last edited: 17th Sep, 2016
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    AM - Creaming off the super

     
    Last edited: 17th Sep, 2016
  3. austing

    austing Well-Known Member

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    Yep,

    And the income component is the first thing to be gobbled up in fees by unlisted funds and wrap providers. So in times of minimal capital gains or capital losses the poor investor is left with nothing much at all. The investor doesn't notice too much in good times because a lot of the income is via realized capital gains. There is not much (if anything other than maybe some franking credits) left out of dividends after trailing commissions, management fees and wrap account fees etc are deducted.

    At least if you invest directly in dividend paying stocks or Listed funds the income (dividends) generally still keeps coming in during bad times.

    There's no way in the world I will ever use unlisted managed funds directly or through wrap providers again.

    Cheers - Gordon
     
  4. Young Gun

    Young Gun Guest

    most ongoing adviser fees are a % of funds under management. A fall in the sharemarket will relate to a direct decrease in Financial planning revenue.

    This is just another Industry fund scare campaign.
     
  5. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    What the industry funds don't tell you is that generally the advice they can give you is extremely limited, their options are limited and the returns aren't any better than retail funds.

    I don't understand why people are happy to pay an adviser in good times, then blame the adviser when the market drops, like the adviser is supposed to be some miracle executing god that can make positive returns happen every year regardless of the where the market is. If people think they can do better, then why even go to an adviser in the first place?

    But this is just classic 'take no responsibilty' reasoning. People always look for someone else to blame when things go wrong. 'Hey it's not my fault I didn't do the research properly and find a good adviser who is in tune with my financial goals, I'm just gonna blame everyone but myself for where I'm at financially!'.

    Mark
     
  6. carlosreynolds

    carlosreynolds Active Member

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    Here's a response to the Industry Funds "scare" campaign - not sure if it's been posted before (did a quick search but didn't see it).

    At last look, the link directed you to a page showing the media release and a copy of the document, titled The Value of Advice.

    http://www.fpa.asn.au/FPA_LatestNews.aspx?EventGroup=1&EventItem=172 - Link seems to be down at the moment. So here it is attached.

    The (lengthy) document, shows quite a few things that the Industry Funds have left out of their advertising.
     

    Attached Files:

  7. AsxBroker

    AsxBroker Well-Known Member

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    Just remember, Industry Super funds don't have many advisers recommending their products. As I said before in another post, they flog product as opposed to advice to customers whereas advisers give advice to clients.

    As Industry Super Funds have no distribution network they have to find other ways to get customers, tv advertising is a way to distribute to the masses.

    Talking about pricing, generally public offer funds are cheaper than industry funds, also Industry Super Funds are much more expensive due to paying Capital Gains Tax.

    Personally, I am much happier that my super funds doesn't pay capital gains tax everyday and when I retire my super funds doesn't have to pay CGT as my super fund transfers it's assets straight into allocated pensions without selling down the funds and realising CGT event.

    Cheers,

    Dan

    PS Before making an investment decision speak to an FPA registered Financial Planner.