Be Careful Who Gives You Advice

Recently a professor at our local university held a seminar advising that there’s no longer the need for the advice of a Financial Planner due to the new simple super rules.
 
I wonder, instead of students going to Universities, if lectures were pod cast via the internet directly to the student’s home anywhere in the world, would there be a need for Professors?  Do you think students would receive the same level of education watching a pod cast that you would being taught by a professor? 
 
I doubt it, it’s not simply a matter of being able to have access to the information it also depends on how you interpret it. This is where a professional such as a Financial Planner or University Professor are worth the cost. Misinterpret a lecture and you may fail the subject, misinterpret the super rules and you may live in poverty for the rest of your life. It is easy to make sweeping statements as this Professor has when you do not have all the facts. But be careful of such people they may not have your best interests in mind when they make such statements.

Let’s take a look at the benefits you derive from a Financial Planner.

As I’ve discussed many time fees charged by a Financial Planner are irrelevant if the advice they provide results in you achieving a better return. To focus purely on fees being charged shows a real lack of understanding of the investment markets.

The benefits of a Financial Planner

1. Explaining the new simple super rules - These are not so simple. Issues may include, transition to retirement pension, work tests, centerlink pension tests, how much can you contribute in any one year, what is the minimum and maximum pension you can take when below age 60, above age 60.
2. Giving you structuring advice, how to hold your investments, which entity.
3. How to accumulate super faster.
4. What to invest the super fund money in, this is a real value add. Most people think all super funds are the same. You could not be more wrong. Good investments handled by a professional investment adviser who has their finger on the market will outperform the industry fund over the long term and certainly has over the past 12 months.
5. Being on the spot to make sure you don’t get caught up in a WestPoint, ACR or a Fincorp. A vast majority of people who lost money in these investments did not have a Financial Advisor because they were saving a few dollars. How did that work out for them?  Yes this was people’s super money.
6. Financial Planners are mostly highly qualified, certainly the ones that work for ABN AMRO Townsville are. To check out our qualifications just go to our advisers page.

Sleep easy knowing that a paid professional with your best interests in mind is looking after your interest.