Frustrated with bad financial advice

**Dave A** · 02-May-13, 09:27 PM

Originally Posted by Blurock

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** · 03-May-13, 12:48 PM

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** · 03-May-13, 03:42 PM

Originally Posted by Dave A

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** · 04-May-13, 09:10 AM

Originally Posted by Blurock

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** · 06-May-13, 10:30 AM

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

**Rafael** · 06-May-13, 12:04 PM

I get a weekly updated list on fund returns for the month, 3 months, 9 months, 1 year, 3 years, 5 years and 10 years on +-820 funds.

If you like I can e-mail the list to you so you may have a look and make your own decision

**Miro Bagrov** · 14-May-13, 01:03 PM

If you want 20%+ without any diversification, and also no "speculation", then why not have a look at straight business acquisitions.

Become involved in cash buy outs where you maintain controlling interest. That way you are well in a position to dictate your own returns and the company's operations.

There are endless business being sold, and many others where the owners are thinking about it or would accept a cash offer. One of the corporations which do a lot of this is Bidvest and they have healthy profits.