Are you getting value for your money?

Financial Planners

I was chatting with a family member over the weekend.

He told me about a friend who went to see a financial planner.

My spouse had invested in my supermarket through an industry fund, Australian Super.

And what advice do planners have?

“We should move it to a wealth platform. Fees will be higher, but at least we can see it.”

At this point, I must admit that the story was probably twisted and misunderstood by the time I heard it.

And thankfully, I don’t know who my advisor was, so I can avoid getting into legal trouble.

It also has the potential to protect the guilty.

Because paying more “to be able to monitor” was almost certainly bad advice.

And unfortunately it’s all too common.

As I’ve written before, and I stand by this, there are very good financial planners out there.

As I wrote yesterday, some people just need or want a financial coach. It’s important and potentially costly, but for those people it might save them from some terrible mistakes, so it’s less costly (and overall more than not doing it). wealth).

Some people need advice on the right structure for their investment, or make sure they have the right insurance and are considering property plans. Expert advice on these areas is very helpful.

But…you knew this was going to happen…some planners seem to think of their clients as meal vouchers.

Now, it’s possible that the planner citation in question was wrong. There could be any number of valid reasons for a planner to need to “monitor” a client’s super.

I have no idea.

So why would an advisor encourage a client to pay more in commission?

I mean… I couldn’t even guess…

But if you’re going to do that, I think “keeping an eye” on your money is probably the worst reason.

AustralianSuper is not like a small, tiny business. It’s not that you can’t get regular reports on your super balance and change your investment strategy as needed.

Is it possible that the advisor did it for personal gain? Was it because he wanted to make more money at the expense of his clients, or make his life easier?

I don’t know the answer.

The most controllable part of wealth creation is fees, and I know too many people overpay because they are unaware or actively misunderstood.

Now, even if a financial planner is important to you and can steer you in the right direction, chances are you can still put your money to good use.

If not, the planner will cover your expenses and you will enjoy a nice vacation. A holiday that could be yours.

At this point, some planners hit the Send Rage Email button on their iPhones. Some because they didn’t really read what I wrote. Some say it’s because they’re angry that their actions are being watched.

And I’m not pushing back from criticism. If you are taking advantage of someone based on information asymmetry, because you know more than they do, and you profit from shamelessly expanding and exploiting it. It’s from I am happy to condemn you for that.

(If you’re currently thinking, “Wait a minute, the Motley Fool doesn’t ask for advice?” you’re right. And, as I’ve repeatedly told members, we value If they don’t, they shouldn’t be renewing their membership in our service either.This is about them, not us.)

However, please be assured that we receive more supportive emails than angry emails from planners. Because, as I said earlier, great companies understand that and offer clients more value than they cost.

Still, I hope this is a cautionary tale.

We would love to help you plan your finances either personally or through our planners.

We hope this plan will help you achieve your goals.

I hope you pay me what it’s worth. And not even a dollar more.

And I hope you don’t pay someone extra just to “watch” your investment.


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