Withstanding the pain!

Hi Jono

How do you make money from a blog?


Johny.

 

There are a number of ways, but the easiest one to set up is Google Adsense.

Check this out:

How Bloggers Make Money from Blogs

 

Rebalancing

Hi All,

Due to technical problems I have just missed this months rebalancing. I understand that a rebalance takes units from your most successful funds and transfers them to your underperforming funds. Effectively selling high and buying low.

My question is: How often should you rebalance? A year, six months or quarterly?



Thanks, Johny.

 

I have chosen to rebalance quartely.




Johny.

 

Sweet F.A.

Why is it, that I can't hold onto my financial advisors? I've gone through more than half a dozen in a little over two years. I build up a relationship, they go, then I have to start over again!

So, What are 10 good characterists that will make an experienced FA?
and........
Who should I avoid?



Thanks, Johny.

 

Hi Johny,

FPA's website Financial Planning Association of Australia - Home

10 characteristics? Thats quite a few...
Experienced FA? I think experience comes with time doesn't it?

Characteristics I would suggest looking for are (and obviously this will narrow your list down significantly):

1. Financial Planning Association member? You can check here to confirm The Financial Planning Association of Australia Limited

2. Authorised Representative registered with Australian Securities and Investments Commission? You can check here to confirm ASIC Authorised Representatives Browse

3. Part of a large dealer group? The Financial Services Guide (FSG) will tell you who you are actually dealing with. People sing on and on about independent financial planners (ie, advisers having no relationship with a product provider) reality is that these are the groups that when bad advice is given go belly up or disappear. If a bank or life company adviser does the wrong thing they will fix it to put the client back in the situation they were in. I'm sure that any Storm Financial client doesn't care that they were "independent". Moral of the story, so called independent ownership is nice but what cost does it come at?

4. Ask friend who they use as a financial planner? Your friends will tell you about any bad experiences so you can stay away based on their recommendations.

5. Ask how long have they been a financial planner and why they became a financial planner.

6. Who runs the practice and whether it is a franchised practice or employed practice? This is more for your information as both can be good or bad.

7. What experience and qualifications do they have?

8. How much do they charge? I think this is probably more important than how do they charge, at the end of the day your dollar is still your dollar wherever it comes from or however it gets paid.

Nice to haves but don't get too hung up about if not:

9. Financial Services Institute of Australasia member? You probably won't find too many around, FinSIA is a more broad based (wealth management, banking & finance and capital markets) very well recognised industry professional association.

10. Certified Financial Planner (CFP), this is the FPA's equivalent of CA or CPA. If they are CFP ask them if they completed the CFP education course or purely got it through membership. Prior to the education course (about 9 years ago?) FPA members could tick a box to sign up as a CFP member without having to do any additional education.

I'd actually rate 9 as more important than 10, specialisation is nice, though it is best to have a broader understanding of what is going on. As someone had previous said it is disappointing that financial planners are not taught economics (not in Advanced Diploma Financial Services (Financial Planning) or Certified Financial Planner) though FinSIA members are taught economics in Diploma Financial Services (Fin Mkts) and also Graduate Diploma Applied Finance.

Cheers,

Dan

PS This is personal opinion, other members may look for other things in a financial planner.

 

Thanks Dan,

That was very helpful. I sure learn a lot from you. Having the right FA makes life easier. I need to feel comfortable around him, while acknowledging that sometimes our ideas may differ. I have no problems paying fees, so long as my wealth grows.



Johny.

 

hello John,

I have used my FP for more than 3 years he has been good for me, he advised me very well over that period. I am very happy with him both from fees and advice perspective. I can definetly recommend them, if you want to do research on them and the services they offer go to Financial Keys website (search in google).

Aviraj

 

Thanks Aviraj,

Checked out the Financial Keys website. It is based in Sydney, which is a bit far away.

@ Chinesewombat: Indexing is like a religion. You either believe it or you don't. And like vegetarians, you are always defending yourself. Also, you can lose money just as easy.

The defining point for me is cost. One of my index funds cost 0.4% MER (management expense ratio). I can see where my fund is daily from the TV. I had a fund from Challenger and it underperformed for 5 years. I was paying good money for underperformance.

Hit the universities and read all the indexing books you can find, and then decide if indexing is for you.



Cheers, Johny.

 

Indexing is a cost effective way of investing without having to worry about over or under performance.

I'd skip hitting the universities and go straight to "A Random Walk Down Wallstreet" by Burton Malkiel.

Cheers,

Dan

PS This is general information, speak to your FPA registered Financial Planner before making an investment decision.

 

Dan, I think this point requires some clarification.

Are you placing all independent financial planners in the same category as Storm Financial?

 

Hi C3PO,

Absolutely not, Storm Financial found out that one size does not fit all clients...Many financial planners are much more sensible than that (whether independent or not).

What I am saying is that there are negatives to going to an "independent". Unfortunately the number of financial planners in independents are slowly being reduced over time being bought by larger institutions (similarly with mortgage brokers). Ironically, Mark Bouris is starring in Australia's version of The Apprentice tonight in which he made his fortunes in Wizard Home Loans which is now owned by Aussie Aussie and Wizard | Aussie which is now owned by Commonwealth Bank of Australia...

Cheers,

Dan

 

By the luck of the gods, I was refused investments from E.C. of Storm. I don't know why I was refused, but I was spared heartache and pain. Just thinking of myself being included with the hundreds of homeless investors, gives chills down my spine. This is one reason why an educational website like Invested is so important. The older I get the more I learn.




Johny.

 

Apologies...Australian Apprentice starts next Monday 28th September 8.30pm
The Apprentice: starts Monday September 28th 2009 9.30pm

Cheers,

Dan

 

Didn't enjoy the Oz Apprentice as much as the U.S. one. One of the american contestants took her dress off to make some money. (got sacked though).


I am wondering if there is any commercial software that can track my investment by:

a) inputing my daily MF units and tracking them all at the same time.

b) keeping a total fund average in my asset allocation ratio's.

c) keeping an actual total.

d) allow for yearly rebalancing.

e) allow shadow tracking for hypothetical portfolios.


Does such software exist?




Thanks, Johny.