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Benefits of financial advice
Many people seek financial advice because they don't have the time, energy or the technical expertise to look after their own finances. A financial adviser considers your goals and look at all the financial options to meet those goals in the short, medium and long term.
Financial makes the most of your money. The right advice can help you avoid costly mistakes, take advantage of tax concessions and select investment options with return potential but with the same risk level.
Your adviser will give you direction by providing tailored solutions. An adviser performs a holistic review of your situation, reviews where you are in your life and make recommendations to suit your needs.
Seek Independent, Unbiased Financial Advice.
Financial advice can be invaluable. But equally important is how you pay for the financial advice you receive.
2020 DIRECTINVEST has always been a vocal advocate of 'fee for service financial advice'. As remuneration, financial advisers in Australia typically receive the 4% - 5% entry fee charged by most managed funds and superannuation funds. (2020 DIRECTINVEST rebates 100% of the entry fee on virtually any managed fund or superannuation fund in Australia. Don't pay unnecessary fees.) On top of this entry fee, advisers often charge a percentage based service fee as high as 1%- 2% of the account balance annually. This service fee lasts for the life of the investment and will have a significant adverse effect on returns.
Fee for Service Financial Advice
Fee for service financial advice refers to paying your adviser or planner an hourly rate for the advice provided. Financial advisers provide a professional service, just like an accountant or a lawyer, and just like an accountant or a lawyer they should charge an hourly rate for this service. This may mean paying for advice received upfront, but will save thousands of dollars in annual service fees over the life of the investment. Fee for service financial advice ensures that you are free to implement the advice you receive, rather than bound to the advice you receive. And like any other professional, a financial adviser will need to provide a professional service to keep you as a client. If you are happy with the adviser and choose to proceed with annual reviews and ongoing service, these are similarly paid for on a fee for service basis.
Fee for service financial advice is also the only way to ensure unbiased, non commission driven advice. Immediately apparent conflicts of interest arise when a financial adviser is paid by the fund he or she is recommending. In recent shadow shopping surveys carried out, ASIC has been damning of the financial advisers and advice that is tainted by commissions. These days more than 75% of financial planning groups are owned by banks and insurance companies. By paying your financial adviser an hourly fee for service, there will be no incentive to recommend a fund for any reason other than the merit of that fund. To ensure independent financial advice, you need to be the only one paying your adviser. |
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| 2020 DIRECTINVEST ADVICE | Professional fee for service financial advice - receive advice that is not driven by commissions. more info
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| Tax Effective Agribusiness | Thinking agribusiness? 80% commission rebate on all agribusiness investments. more info
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