More Detail Here: Switching Afsl License Afsl Authorised Representative Submitted by: Jim Stackpool Since emerging close to a decade ago, the expression Wealth Management has developed into a sort of default moniker for a wide
More Detail Here:
Submitted by: Jim Stackpool
Since emerging close to a decade ago, the expression Wealth Management has developed into a sort of default moniker for a wide range of financial services and offerings, similar to climate change , fat-reduced , and social networking . The phrase has been used (and abused) by a number of commentators on our industry, routinely as if it described what all financial services professionals do for a living. I believe financial planners desperately need to have a better moniker.
Unfortunately, from the eyes of most people, commentators and even industry participants, the core proposition of wealth management has come to represent the infinite and often circular chasing of larger financial returns.
Wealth management is much more than having the best financial returns and procuring services at the cheapest feasible price.
Despite the similar amounts of money being invested on financial products, they aren t like the cars or houses consumers purchase due to the fact financial products don t depreciate according to use. Rather, financial products depreciate based on the known and unknown changes in our lives, and dependant on the unseen influences of legislation, markets, as well as a active product development production line that may be hurried along by intelligent actuaries cramming more profits from better products.
The core promise of wealth management has to be the delivery of greater economic certainty, rather than investing in today s cheapest or greatest performing products Purchasing well-performing products at competitive pricing is fairly important, but only in the context that the prices paid and products delivered present purchasers with higher certainty in their financial lives.
What I am saying is financial products are like medications, they do their job when correctly used on the appropriate ailment, for the appropriate amount of time, sadly with no an unbiased and experienced advisor, which in such a situation would be a certified Doctor, these medicines can do more harm than good. This can be exactly the same with financial products, they might well be the highest performing product at the moment, still if not applied for the relevant purpose for the ideal amount of time they could do more harm than good. In the situation of financial products the advisor is actually a experienced and up to date financial advisor that is not biased by the commissions he can get paid on the financial products he advises you to buy. Imagine if the doctor of medicine was making a commission on the prescription drugs he advised you to buy, imagine that he prescribed drugs for twice as long as you required them, or prescribed medicines that you didn’t need at all, or worse still, prescribed the wrong medications altogether just because he could make loads of money out of the commission. This of course does not occur in the healthcare profession, the law dictates that physicians can not make commissions on medicines and drug companies are not able to pay medical professionals commissions. However this is not the case in the financial advice industry, on the contrary, this is normal practice, and many people are left out of pocket when it comes to their retirement income. This practice could cost you thousands and thousands of dollars once you come to retirement age. It is time we all stood up and created some noise about this issue, the Australian government has to act to regulate this industry now.
In following instalments of this series of posts, we ll discuss:
why product rates and performances aren’t enough for wealth management (part 2);
what fine finance industry experts really do (part 3); and
what kind of new moniker the financial advice market needs (part 4).
About the Author: I want greater certainty in my financial life, I want to know what I am paying for, I want to know that my life is in order, I am not alone, I am like you. I am Jim Stackpool and I am creating an advice industry in Australia to give us all greater certainty in our financial lives, and in our lives in general. I train the advisors, show them how to move from selling financial products with hidden commissions to selling advice and being up front about the price. I am advising the government on cleaning up the advice industry so in the end we all benenfit. Call it a crusade if you like but I believe we all want and need greater certainty.Jim Stackpool is a
jimstackpool.com
commentator, an
jimstackpool.com
to the advisors and is today running a campaign he hopes will trigger the creation of a true advice industry, one which is not beholden to the banks that pay the commissions on the financial products currently being sold by so called advisors.
Source:
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