Newspaper article News Mail Bundaberg Qld.

Good Advice Saves You Money

Newspaper article News Mail Bundaberg Qld.

Good Advice Saves You Money

Article excerpt

SINCE the banning of commissions, advisers are required to charge a fee for service. On the face of it, it's a better system as it is transparent and in many cases the fee may be tax-deductible.

Unfortunately, human nature being what it is, few consumers have objections to fees that are automatically deducted, however they have a totally different attitude when they have to pay the money from their own pocket as a separate item.

Unfortunately, due to the mire of regulations foisted on the financial industry by well-meaning bureaucrats, who are more concerned with ticking boxes than offering real solutions, a financial adviser is now required to hand a potential client a Statement of Advice which may be over 100 pages. The cost to produce this is usually between $2000 and $3000.

It's ironic that a person who wouldn't blink at an $8000 commission included in a $200,000 investment is often reluctant to pay less than half this for a Statement of Advice, if it requires having to write a cheque. …

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