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Millionaires Say Advisers Failed Them in Crisis

Discussion in 'Financial Planning' started by Tropo, 8th Jan, 2009.

  1. Tropo

    Tropo Well-Known Member

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  2. Chris.R_WA

    Chris.R_WA Well-Known Member

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    Ouch...!!

    That really puts any of my losses into perspective :eek:

    Chris
     
  3. Andrew Newman

    Andrew Newman Well-Known Member

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    Thanks for the link Tropo.

    Quoting the article, "U.S. millionaires lost an average 30% of their assets last year, with 17% of respondents saying their assets declined by 40% or more.... The Standard & Poor’s 500 Index dropped 38 percent last year..."

    Difficult to say if most advisers performed ok as it really depends on the level of expsoure to shares and property, which had the largest declines.

    Irrespective, no investor likes to suffer declines in their portfolio.
     
  4. Chris C

    Chris C Well-Known Member

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    Millionaires should be smart enough to not blindly trust advisors. When it comes to matters of money every single person should educate themselves, otherwise a fool and his money are quickly parted.
     
  5. AsxBroker

    AsxBroker Well-Known Member

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    Hi Chris,

    I agree. Though in reality everyone should have enough commonsense to understand what the adviser is recommending and speak up if they do not feel comfortable with it. It's similar when you go to a doctor and they diagnosis and then prescribe a solution, if the solution is a drug you ask the risks/side effects. Best of all, if you don't like it you can see another one!

    Client's will follow their accountant off a cliff like a lemming as whatever their accountant says is gospel!

    Saying that, Millionaires, and everyone else, should realise that it's the economy and not always look for someone to blame. The desire to blame shows that they are not comfortable in the investments that they are invested as they did not recognise the downside involved until it was too late (of course everyone loves to upside, this is greed).

    Unfortunately, you just have to pick up a newspaper and see where they hide the business section, usually towards the back of the newspaper. It's just not stuff that the average Australian is interested in :( I strongly agree that basic money management in highschools would be fantastic as this is when kids start getting part time jobs.

    Cheers,

    Dan
     
  6. AsxBroker

    AsxBroker Well-Known Member

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    Commentary: The real lesson of the Madoff case - CNN.com

     
  7. Chris C

    Chris C Well-Known Member

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    Most people lack the responsibilty to accept where their failures lie and as a result they are doomed to repeat their mistakes. There will be another longish US recession within 5 years of this one being over.
     
    Last edited by a moderator: 11th Jan, 2009
  8. Andrew Newman

    Andrew Newman Well-Known Member

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    Thanks for the link Dan.

    I agree with you Chris that people need to accept responsibilty for their own investment decisions.

    I just wanted to quote the last section as it provides some good advice:

    "If someone, especially a member of your racial, religious or social group, offers you a deal not available to the general public, check it out. Very diligently........Never, never, never put all your eggs in one basket, no matter how good it looks."

    Basically, there will be always be dishonest people in our society trying to convince you to invest with them - do your best to avoid them.