Frustrated with bad financial advice

[bron88]

Hello, I am feeling frustrated with receiving advice from financial planners who recommed luke warm water investments.

I want to get great growth on my money, doe anyone have recommended products or services which I can try ( I want to educate myself not rely in these guys that want to sell me stuff because they get a commission)?

Have you experienced the same problems?

[adrianh]

Get your money for nothing and your chicks for free. I recommend Dire Straits!

[bron88]

I don't think I quite understand please elaborate?

[Citizen X]

Hi Bron88,

Welcome to TFSA

[Dave A]

Seeing as you're talking to financial planners, I take it you're talking investing rather than speculating.
What have these financial planners been recommending?
And what sort of return are you aiming for?

Here's quite a good tool for tracking the relative performance of a wide range of investment funds. It might help you sift out good advice from bad...

My link sorts performance over the past 5 years, but play with it.

[Rafael]

How long are you looking to invest for?
What type of returns are you looking for?
What is the investment amount are you looking at (for diversification)
Are you looking for flexibility and regular withdrawals or investing for a long period of time without withdrawals.

[bron88]

Thanks for your tips will look at that link now , Yes I am looking for investments not speculations.

I am finding they want to sell me policies and investments which they will get a cut or fee.

I am looking to invest long term like 3+ years, returns of at least 20%, but instead my financial planner recommends investments with no guarantee only around 10%
Im not big on diversification - I think if I can get one investment that works well I wont dilute it with various others which don't perform.

[Mark Atkinson]

You want 20% guaranteed returns?

When you find that, show me the way!
(Assuming you mean 20% p/a)

Also, throwing your eggs into one basket is unlikely to be a good idea unless that capital is completely expendable. Pretty sure any financial planner would recommend diversification.

[Dave A]

You want 20% guaranteed returns?

When you find that, show me the way!
(Assuming you mean 20% p/a)

By no means guaranteed, but there are a few funds that are producing those sorts of returns on a very consistent basis.

[Blurock]

Hello, I am feeling frustrated with receiving advice from financial planners who recommed luke warm water investments.

I want to get great growth on my money, doe anyone have recommended products or services which I can try ( I want to educate myself not rely in these guys that want to sell me stuff because they get a commission)?

Have you experienced the same problems?

I trust that you are aware of the financial principle; high risk, high return. Also as Mark said, putting everything into one investment is risky.

One can also expect a financial adviser to earn a commission as they do not earn salaries, but depend on commission only. This is usually built into the price of the investment product. It is therefore in their own interest to give the their clients the best advice. Unfortunately not all financial advisers are that well trained and some are not that much experienced. Choose your adviser well and don't be afraid to ask questions.

[Dave A]

One can also expect a financial adviser to earn a commission as they do not earn salaries, but depend on commission only. This is usually built into the price of the investment product. It is therefore in their own interest to give the their clients the best advice.

I respectfully disagree. It is in their best interest to sell a product where they'll earn a commission - and many (perhaps most?) financial advisers work for a company and will only earn commissions on sales of that company's financial products.

I reckon the best solution is to identify the product (or products) you want first, then approach the company(s) that administers it (them).
The alternative is to go to an independant broker with a foot in many doors.

[IanF]

My 2 cents is find a highly recommended financial adviser and say you want a consultation only and are willing to pay for that. Also state that any investments you make won't be done with the adviser. In other words pay a fee for professional and unbiased advice. I do not have enough spare cash to do this but is what I would do.

[Blurock]

I respectfully disagree. It is in their best interest to sell a product where they'll earn a commission - and many (perhaps most?) financial advisers work for a company and will only earn commissions on sales of that company's financial products.

I reckon the best solution is to identify the product (or products) you want first, then approach the company(s) that administers it (them).
The alternative is to go to an independent broker with a foot in many doors.

But they still earn commission. I have not come across a broker that does not earn commission. Agreed, that is also one of the reasons why the NCR was formed. That is why you should choose carefully and look at the company and the individual's record and reputation.

[Dave A]

But they still earn commission.

Agreed.
And of course, percentages vary.

In fact, that might be something worth expanding on too when it comes to a "get the best financial product deal" strategy.

[Rafael]

Most financial advisers earn commission only, some upfront and some only take monthly fees.

Not all advisers sell products where they will earn commission Dave, I have over 120 clients in the Fundisa Fund (education fund), where I don't take any commissions, I could charge a fee but I don't. I could also give them fixed investments where I earn a greater commission but I don't as I give the clients whats best for them. I don't charge for a basic Will, while others do.

Maybe I'm different but I believe if you look after your clients best interests, referrals will keep coming in. I have not made a cold call since I started in this industry, and my business is solely based on referrals

I take a monthly fee on lump sum investments, you need to go to an adviser that has experience and is going to actively manage the funds on your behalf. I meet many advisers that take a monthly fee and don't do any management what so ever. If I took upfront fees, I would always be looking for my next client, with a monthly fee, I can focus on my clients investments (please note that the monthly fees are negotiated with my clients)

If you looking for a period of 3 years then I would suggest a unit trust or a similar investment product, if you not looking to pay fees then go to the investment management company directly.

Some funds from the top of my head
Coronation Property Equity
Stanlib Property Income
Stanlib Industrial fund