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Storm Financial Group

Discussion in 'General Investment and Economics' started by Garpal Gumnut, Oct 31, 2008.

  1. Garpal Gumnut

    Garpal Gumnut Well-Known Member

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    Anyone know anything about these guys. A few of my mates are clients. They are Townsville based . I don't use advisers.

    gg
     
  2. white_crane

    white_crane Jedi Master

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    They're the richest people in Townsville...

    Husband and wife team, been around a long time, $4b under advice

    Appear to have a good reputation.


    That's all I know.
     
  3. Nashezz

    Nashezz Well-Known Member

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    Heard that they were going down the tube as the whole 'stormified' thing relied on heavily geared mortgages - not so good when property started to slide backwards.
     
  4. Glen48

    Glen48 Money can't buy Poverty

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    Two here in Redcliffe Qld a Firm called (Ron) Jelich Jones ( Bob) are with them and have a lot of money to throw around and have been buying some top R. .E ( well use to be top).
    The person who started it in TVL got a mention in Qld richest in a recent press release.
     
  5. Garpal Gumnut

    Garpal Gumnut Well-Known Member

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    Thanks all

    I've heard all of the above.

    Gearing over the past 12 months would have been brave.

    They are all over Australia I believe.

    gg
     
  6. Duckman#72

    Duckman#72 Well-Known Member

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    I don't believe that they are for everyone as their methodology is very aggressive. I personally don't agree with it. Below are some bits of information I've taken from Storm seminars held.

    Their actual investments are quite solid. Nothing o/seas, just Aussie shares/managed funds of which a fair portion are index tracking investments. But the main difference is the level of gearing. It is just debt on debt. The moment portfolios are re-valued upward they increase the debt accordingly.

    My understanding is that Storm as a group brokered a deal with Macquarie so that their clients could extend further than the maximum 70% gearing ratio that applies to most others looking at margin lending. I also am of the view that they say the debt is never to be repaid (or at least it is not a large part of the financial plan). As the assets grow so to does the level of debt. As I undertstand it, Storm don't follow the rule of why you need to "retire" - or at least "retire" your money in retirement. They believe it is their to be used to create more wealth even in "old age".

    When markets are going well - this doesn't seem a problem. But I think the way the market has been over the past 18 months it has highlighted a major flaw in the methodology. People need a certain comfort level at which they will sacrifice more wealth for a decent nights sleep and piece of mind. As you can see - I don't think that their actual "investment" advice (where the money was placed) would be a huge problem for them as they were fairly conservative but the "big picture plan" is a bit out there for some.

    Duckman
     
  7. Garpal Gumnut

    Garpal Gumnut Well-Known Member

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    I don't go with financial advisers and don't know much about them.

    I'll pass on your thoughts to my mate.

    gg
     
  8. classer

    classer Active Member

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    I know they are spending a lot of hours in the office of late. My girlfriend has a portfolio with them so I need to find out a bit more of their methods myself.
    The advice up until the meltdown seems to have been ok but their fees seem to come in for some mention from others in the industry.
     
  9. Nashezz

    Nashezz Well-Known Member

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    I work in financial planning and we received an email recently showing what constituted a 'Statement of Advice' for Storm. If it was legit, it is a joke of a document and discloses little while getting you to sign off on an open, unexplained investment plan.

    Clients are often 'double geared' so when markets go backwards it gets nasty.
     
  10. Garpal Gumnut

    Garpal Gumnut Well-Known Member

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    Thanks guys, I'll pass on that to my mate. When markets go against you gearing can be nasty.

    gg
     
  11. privatename

    privatename Member

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    I found this forum while googling 'Storm Financial'.

    I know enough about the background of one of the principals that I wouldn't deal with people with such a history. I understand they charge 7% upfront and 1.5%pa in commissions and live the lifestyle they promise their clients.
     
  12. Garpal Gumnut

    Garpal Gumnut Well-Known Member

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    The local newspaper (Townsville Bulletin) has this mob on their front page today. It appears CBA have a hold of the rug and are pulling it with reasonable vigour.

    From the news on the ground a fair few "sophisticated" North Queensland investors are in to this group for in excess of half a billion $.

    gg
     
  13. acedrum

    acedrum Active Member

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    From what I know, one of the things they offer is to set up a margin loan using the equity in your home and average in long the Aus 200 index regardless of the direction of the market. :confused:
     
  14. Garpal Gumnut

    Garpal Gumnut Well-Known Member

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    That is my understanding of them as well acedrum.

    Buying dips in a bull market while financing it with equity from businesses and homes is a reasonable but risky tactic in a bull market.

    When the market turns as it has it can be disastrous.

    On top of that if it is into managed funds you are paying all the little biters along the way.

    It will be interesting to see the washout.

    gg
     
  15. Glen48

    Glen48 Money can't buy Poverty

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    The local group here in Redcliffe Q brought a ex boat yard (message there?) and have a huge banner proclaiming big things but nothing has been done for a long time.
     
  16. Garpal Gumnut

    Garpal Gumnut Well-Known Member

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    The Bully (Townsville Bulletin) described their Townsville headquarters as being quite palatial, gilt dunnies and glass everywhere else.

    gg
     
  17. beachbum

    beachbum Member

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    Drove past the great new Storm Headquarters in Townsville a few minutes ago. Reporters across the road filming tonights news report and the great building is looking very empty. I feel sorry for all who put faith in this lot, then again "when things are too good to be true"...............................
    No doubt the Cassimatis's will have their share tucked away and all the folk who have hocked themselves to the hilt will have paid for it.

    Very sad and hard lesson.
     
  18. Glen48

    Glen48 Money can't buy Poverty

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    As soon as I walk in to one of those type of setting I think who is paying for all this greed and walk out. Sounds to me like they could make good money in boom times but fall apart when they have to work it out themselves.
    One of the directors here in Redcliffe has the ego massaging photo of him playing golf with Greg Norman. Then again maybe I charged him to much and send them under???
     
  19. Garpal Gumnut

    Garpal Gumnut Well-Known Member

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    I'm off out this arvo to buy a mansion or three in Townsville.

    gg
     
  20. numbercruncher

    numbercruncher Beware of Dropbears

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    Opportunities and obligations everywhere hey !

    happy shopping :D
     
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