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Financial advisor business

Leigh Farrell

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Nov 27, 2017
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Adelaide, South Australia
I'm the owner of a home and business services company that's currently offering domestic cleaning, office cleaning, and business bookkeeping.
An office cleaning client of mine (a financial advisor) recently asked me if he could evaluate my Superannuation fund. For those outside of Australia, every business must pay 9.5% on top of their employees wages into an approved investment fund (super fund) which can't be touched until the employee reaches 65 years old.
I agreed to let him look at it and give me some advice.
A week later we met again and he went through his recommendation:
Change superfund companies to AMP (they charge 4% ongoing annual fees, 4% fee to open the account, and average returns over the past have years are almost 6% per annum). He also charges a 1% fee on top.
My existing fund charges 1.25% ongoing fees and over the past 5 years has returned an average of 11.5% pa.
When i compared his recommendation and showed him the stats, he said ''I've got nearly 2000 clients who trust what i say without question. Who are you to question me? I'm a professional! ''
This has got me thinking. If an advisor with a poor attitude, poor customer service, dispensing poor advise can get 2000 clients, what could i do in his industry?
I've looked into it briefly and have discovered that i could become qualified with 1 year of study at 10 hours per week. Tuition fees are likely to be a few thousand dollars which i can pay in cash.
Seeing as my objective is to further build my business (adding employees as we grow) and not to increase intrinsic value, does this seem like a logical next step to you?

Thanks,

Leigh
 

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Tommo

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I'm the owner of a home and business services company that's currently offering domestic cleaning, office cleaning, and business bookkeeping.
An office cleaning client of mine (a financial advisor) recently asked me if he could evaluate my Superannuation fund. For those outside of Australia, every business must pay 9.5% on top of their employees wages into an approved investment fund (super fund) which can't be touched until the employee reaches 65 years old.
I agreed to let him look at it and give me some advice.
A week later we met again and he went through his recommendation:
Change superfund companies to AMP (they charge 4% ongoing annual fees, 4% fee to open the account, and average returns over the past have years are almost 6% per annum). He also charges a 1% fee on top.
My existing fund charges 1.25% ongoing fees and over the past 5 years has returned an average of 11.5% pa.
When i compared his recommendation and showed him the stats, he said ''I've got nearly 2000 clients who trust what i say without question. Who are you to question me? I'm a professional! ''
This has got me thinking. If an advisor with a poor attitude, poor customer service, dispensing poor advise can get 2000 clients, what could i do in his industry?
I've looked into it briefly and have discovered that i could become qualified with 1 year of study at 10 hours per week. Tuition fees are likely to be a few thousand dollars which i can pay in cash.
Seeing as my objective is to further build my business (adding employees as we grow) and not to increase intrinsic value, does this seem like a logical next step to you?

Thanks,

Leigh
Go for it. Try CBus for your super, good returns and low fees, whatever you do stay away rom anyone who advises higher fees like at AMP. A year will soon pass so the sooner you get started the better. Good luck.
 

CareCPA

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I'm the owner of a home and business services company that's currently offering domestic cleaning, office cleaning, and business bookkeeping.
An office cleaning client of mine (a financial advisor) recently asked me if he could evaluate my Superannuation fund. For those outside of Australia, every business must pay 9.5% on top of their employees wages into an approved investment fund (super fund) which can't be touched until the employee reaches 65 years old.
I agreed to let him look at it and give me some advice.
A week later we met again and he went through his recommendation:
Change superfund companies to AMP (they charge 4% ongoing annual fees, 4% fee to open the account, and average returns over the past have years are almost 6% per annum). He also charges a 1% fee on top.
My existing fund charges 1.25% ongoing fees and over the past 5 years has returned an average of 11.5% pa.
When i compared his recommendation and showed him the stats, he said ''I've got nearly 2000 clients who trust what i say without question. Who are you to question me? I'm a professional! ''
This has got me thinking. If an advisor with a poor attitude, poor customer service, dispensing poor advise can get 2000 clients, what could i do in his industry?
I've looked into it briefly and have discovered that i could become qualified with 1 year of study at 10 hours per week. Tuition fees are likely to be a few thousand dollars which i can pay in cash.
Seeing as my objective is to further build my business (adding employees as we grow) and not to increase intrinsic value, does this seem like a logical next step to you?

Thanks,

Leigh
I think if I found out my financial adviser's only experience is 500 hours of class-time, and no work experience under a professional, I would run away pretty quickly.
I'm also not sure how cleaning and bookkeeping go together under one business.

Either way, good job running from that other guy with ridiculous fees who wants you to follow him without question.

Note: I may be biased.
 

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