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If there was one question you would like to ask a financial planner

Discussion in 'Financial Planning' started by Andrew Newman, 18th Jun, 2009.

  1. Andrew Newman

    Andrew Newman Well-Known Member

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    Hi All

    If there was one question you would like to ask a financial planner and get a straight answer, what would be your question?

    Cheers
     
  2. Chris C

    Chris C Well-Known Member

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    I'd only care for a straight answer if the FP had perfect knowledge (or at least knowledge that was significantly better than the market). A very misinformed, uneducated and inexperienced FP could give a straight answer but it'd still probably be terrible advice...

    :p

    Though I guess a good one would be "how would you structure your investments for maximum return if you were in my situation..."

    :D
     
  3. ashwright

    ashwright Well-Known Member

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    Mine would be a little different.

    Assuming market average returns, how would you structure your investments to minimise or defer (for as long as possible) tax.
     
  4. Jacque

    Jacque Team InvestEd

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    Why should I trust you with my money over any other financial planner?
     
  5. Chris C

    Chris C Well-Known Member

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    AHAHAH - golden!
     
  6. TryHard

    TryHard Well-Known Member

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    I'd ask them what they are personally invested in, and check it is consisitent with areas where I want to grow. Anyone actively involved in the market I'll be invested in will be better placed to (help me!) make decisions on my behalf, IMO.
     
  7. Player

    Player Member

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    What is their net worth?

    In addition to the asset classes they are invested in, I would want to know what their net worth is.

    There is a saying that rich folk drive their Rolls Royces into Wall Street to take advice from those that catch the subway. :p

    No offence intended to any FP's on this board. I have a wonderful FP and whilst our path is not always aligned by way of strategy or asset mix, he is a great resource when I need him. :)
     
  8. AsxBroker

    AsxBroker Well-Known Member

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    Lol, I would call them a liar...No one has perfect knowledge or knowledge "better" than the market, A Random Walk Down Wall Street is a great book to read.

    Great comments from all!!!

    Cheers,

    Dan
     
  9. Chris C

    Chris C Well-Known Member

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    I've bought but haven't read it, but I also believe that some people "make" the market. I think people overrate the collective conscience of the market, the irrationality and ignorance market is fundamental for bubbles to even occur.
     
  10. AsxBroker

    AsxBroker Well-Known Member

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    Very good book to read...
     
  11. Chris C

    Chris C Well-Known Member

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    LOL there are a lot of good books to read! But it is definitely on the list. I'm hoping to get to it sometime before the end of 2010! LMAO... it's on a long waiting list.
     
  12. greygoose

    greygoose Member

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    would you ask that to a real estate agent recommending you an investment property?
     
  13. Player

    Player Member

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    No, but then again, I'm not paying a rea (unless I've instructed a buyer's agent). As I have not paid the rea a fee for time or commission for a managed fund/product recommendation, I don't see a fair comparison.

    Whilst I may ask questions and value some of their information, I don't take ADVICE from rea's. That's where the difference lies IMO.
     
  14. greygoose

    greygoose Member

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    how you decide to interpret and act on the advice doesn't change the fact that both planners and real estate agents are providing professional advice on your investment decisions.

    not meant as a personal go at you player, just a general issue that i don't like in the way planners are perceived
     
  15. Player

    Player Member

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    Not taking it personally GG.

    IMHO, a real estate agent provides a professional service, not advice. As I indicated in my original post my fin planner has been wonderful, particularly by way of insurance products, setting up SMSF, etc. I don't do managed funds as I prefer to be more active in choosing/selecting my entry/exits of more liquid assets. But for the record I'm heavy in property.

    Now back to my question.....what is their net worth? If I am taking advice, I would want them to be far more advanced than myself by way of net worth so I can be guided to optimise my fin growth journey also.

    In a similar vain, I guess, I wouldn't take nutritional advice from someone who eats fast food every day.

    If my post causes an ill-perceived viewpoint, then that was not my intention......purely want to be guided by someone who has achieved more than me.
     
  16. TryHard

    TryHard Well-Known Member

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    If a financial planner's job is to help me grow my nett worth, I think it is perfectly reasonable to ask them their nett worth. Completely up to them if they want to share their personal information, of course, but still a valid question. I know the old adage of the plumber having leaky taps, but if I'm taking my funds and 'risking' them, I would rather think that the person pointing me towards something has practised what they preach. An FP renting their house with no assets, driving a 30 year old car, threadbare elbows on their jacket, eating fried potato scallops with their morning cigarette, might cause me to be less comfortable than an independently wealthy proven performer. Having said that if he was driving a Lambo and had highrise flash offices and tons of clever salespeople I might be just as cautious :)

    Sorry but that is not correct ... a real estate agent's job is as a salesperson working for the seller, not as an advisor working for the buyer ... completely different motivation and role, so it's an irrelevant comparison. Nowhere in your dealings with a REA do you sign anything that indicates they are providing the buyer with professional advice ... in fact most of what the buyer signs is disclaimers telling you to go and get your own advice.

    Just my $0.02 (which is about my nett worth :) )
     
  17. joanmc

    joanmc Well-Known Member

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    I only seek advice from those that I feel are at a higher level than I.

    I would certainly ask about what strategies they use and their risk profile as we would need to be on the same wavelength to work well together.

    I went to one guy (once only) who was so risk averse that term deposits were as exciting as he got! Not even managed funds. I am a very high risk profile and I like to be hands on. Took 4 goes to find someone who could work with me and I with him. Now I am terrified he's going to reitire to an island somewhere!
     
    Last edited by a moderator: 23rd Jul, 2009
  18. AsxBroker

    AsxBroker Well-Known Member

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    Absolutely, if they can't add any value to your situation...

    I think the adviser's risk profile is irrelevant to your personal situation as they are supposed to be helping you. Certainly strategies that they may have used give you a better idea of their personal experiences.

    That's extremely averse, it's about where the client feels comfortable, it is their investment and not the advisers. I've got clients ranging from bank accounts to geared managed funds and many somewhere in between.

    Cheers,

    Dan
     
  19. TryHard

    TryHard Well-Known Member

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    Maybe the original concept is getting lost in the emotive assessment of how 'insulting' the question might be to an FP.

    People risking their livelihood are these days placed in a position of assuming the worst (HIH, Kleenmaid, Bernie Madoff) and quite rightly might look for some 'personal' guarantee or PROOF of performance.

    If I asked the question and the FP said "here's what I've done, here's what I'm invested in, and my nett wealth has changed 'this' much in 'this many' years" but "sorry I can't go into specifics regarding my personal nett wealth as it is irrelevant and/or personal" I would handle that fine and appreciate it.

    However if they said "well after that spiel I just gave you and you asked how much I'm worth, my answer is NONE OF YOUR BUSINESS" then I would make sure the door doesn't hit me on the way out to find another FP :).

    Cheers
     
    Last edited by a moderator: 18th Jul, 2009
  20. Player

    Player Member

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    Yep.

    **About faces 180 degrees and runs away** :p

    The article below (and I don't necessarily agree with the word "shark" by the way) conveys some of the conflicts that afflict this industry especially the insto/bank based "advisors" or "salespeople"

    Beware of the shark