Third, anyone can give you good advice when the market is going up it is only the few that can give good advice in bad times.The government on one hand is telling the public that you the investor are paying advisers too much in fees; and on the other hand they’re over regulating advisers so they need to charge higher fees to cover costs.
In down markets, such as the one we are currently in, the call from industry funds is that, given your portfolio has performed so poorly, why pay fees to advisers?
Both Industry funds and the Government understand that the service which a financial planner or investment adviser provides goes far beyond choosing investments. In fact the choice of investments is only a minor part of what they do.
My question to you is… When was the last time you had advice on structure of investments, tax effect of salary sacrifice, negative gearing, positive gearing, super regulations, transition to retirement, tax free super, capital gains and losses, tax effective strategies, self managed super funds or anything related to your investments from either the government or industry fund?
Below are a few thoughts on fees in relation to investing;
First, paying a small fee for no service is not good value for money. When was the last time your industry fund did anything for you?
Second, bad years are when you need your adviser’s experience and advice. It is what you do during this time will determine your future wealth.
Third, anyone can give you good advice when the market is going up it is only the few that can give good advice in bad times.
So who are you listening too? Now be honest, why are you listening to them?