Is it wrong to pay your financial adviser upfront/contribution fees – I say yes!

[mikeofsydney]

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Hi all,

New to flyingsolo and personally I find it a travesty that ordinary Australians should pay upfront/contribution fees of up to 4% of their superannuation balance to receive financial advice regarding their superannuation.

I say let’s STOP IT NOW!

That is the whole drive behind my new business – Australian Superannuation Service (AustSS).

I think it is appalling that any hardworking Australian should pay upfront/contribution fees for superannuation advice and service.

If you agree then you are one step ahead of millions of unfortunate Australians – and you should have a look at my website http://www.austss.com.au

I am not trying to sell anything here – my service speaks for itself, and it is my goal to make sure no person in Australia EVER pays upfront/contribution fees for superannuation advice and service again!

Even if you don’t use my services, I beg you to never pay upfront/contribution fees to a financial adviser, and if your financial adviser won’t rebate 100% of the fee, find one that will!

Ok, so that is my rant for the day. What do other people think?

Mike

[Burgo]

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It took me ages to find a Financial Adviser who even had a clue what Finance is all about. I INTERVIEWED them one by one, and the one we eventually went with was not paid a cent untill everthing was sealed and delivered. We talk once a month I have my say he has his say and we work out the most beneficial solution that suits us, not him.

[beanydc]

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FA”s can be remunerated at end of job, front of job, or commission from the institution which receives the placement.
I am not happy at the third option – I have no certainty then that my adviser has given me good independent advice.
I recognise that there is a bit of tyre kicking happening, so perhaps an upfront contribution is necessary. But in the main, I agree with Burgo, that you pay for what you get, after the event.

[stuart50]

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I say yes also!

The other option is to give your employees the option of starting a Self-managed superannuation fund (SMSF) and then they can invest for themselves without paying an investment manager.

SMSF’s also allow small business owners to buy commercial property using their superannuation money. There are tax advantages of holding their shop, clinic, factory, warehouse etc inside their SMSF and it can free up their cash flow.

They can start a SMSF quickly and easily online at my company http://www.weem.com.au or [email protected]

[FinSpec]

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The fee debate on financial planning is pretty hot at the moment considering the losses that have happened over the past year.

I believe that you should pay for what you get – no more, no less. I often come across people that are not willing to pay for good advice, and will actually go elsewhere when faced with the prospect of an actual bill – and will prefer that they get the advice “for free” where in reality, that are paying, and probably paying a lot more.

We’ve charged flat fee for a while, so if we do $100 of work, we get paid $100 worth – but I think that some standards need to be set as well as some education. It really is alarming what some people will sign up for!

[Michael Frawley]

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Wow what a hot topic, Im a financial planner and have never in my working life charged a client an upfront commission. There are plenty of Advisers that don’t charge upfront commissions. Just shop around.

The only rule of thumb is that you pay for what you get. It’s the same as any service you can buy a “Will” kit at the Post Office or you can pay a Solictor to draft one for you. The only insight I can give you is that in my experience people who are financially savy generally shop around and pay for advice wheter it be Tax, Accounting, Financial Advice etc, you just need to do your research and ensure whatever the cost that it represents vale for money.

All the best !

[Author]

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