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Industry funds always say that they dont pay commissions to financial planners, BUT if you want to talk to a financial planner in an industry fund you have to pay for it.
If you are in an industry fund and you are say 5 years from retirement does the financial planner at the industry fund call you and tell you to start planning for your retirement and putting some cash aside so you have at least 3-5 years cashflow so you dont need to sell assets to fund your income needs NO THEY DONT. So all of the retirees in industry funds have to keep working at times like now because they are in 'Balanced' funds and they dont have any income provided for their retirement.
Their is a reason that industry funds dont pay commissions to financial planners because their is no financial planning happening.
Who'd be a financial planner.
Your lampooned when you dont point out the next boom.
Lambasted when you miss out on the latest bust.
Youve got more paper work than centerlink.
More regulations than hazmat.
Your expected to make everyone else millionairs,
yet remain on the bread line yourself all in the name of your clients.
I'm not a fan of Financial Planners.
How true is that!!there is no financial planning happening.
There certainly is a case for Financial Planning. Helping clients create and working a household budget, being an advisor who knows which banks offer the most cost effective services and finally understanding how and where a person might place savings in best value investments. That type of financial planner would have an idea which organisations or individuals were basically sharks and steer you away.
Nice idea isn't it? Trouble is the for profit side of the industry is about extracting as much in initial commissions, trailing commissions, break fees and whatever else can make a dollar. And interestingly enough some of the dodgiest investments and most dangerous strategies offer the highest commissions. Think Storm, think Westpoint.
The industry is fatally conflicted between its own interest and its clients. The customer has lost.This crisis may offer the opportunity to review this entire industry and ask " How do we mobilise the communities savings to create the best opportunities for productive investment and ensure that transactions costs are kept to a "reasonable" figure ."