The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Financial advisor business

Accelerate wealth. Build a business that pays freedom. Join more than 70,000 entrepreneurs and register for the Fastlane Entrepreneur forum. Remove ads? Join the INSIDERS.

Leigh Farrell

Contributor
Nov 27, 2017
48
61
44
35
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
 

Tommo

Silver Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jan 21, 2018
411
686
278
67
Perth Australia
g
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

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 2, 2017
933
3,292
760
32
Pennsylvania
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.
 

Sponsored Offers

  • Sticky
MARKETPLACE NEW: The Best School for Going Fastlane (Now open for summer enrollment)
Read the free book, some excellent insights. I also did the website quiz and I did a visual on a...
MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
Cool - glad to have you. And yes it should help a lot. When you are in the new group just post...
MARKETPLACE Not sure how to start? This free book will teach you how to build a successful web design business
Hi Fox. Starting the book and got through the introduction. Had a conversation with Andy Black...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Chris is super sharp and is aware of many facets of entrepreneurship and can help get your...
Introducing MJ's Personal Unscripted Network, Join Now for FREE!
Any chance to make it available outside of US? It has been available outside of the US on...

Forum Sponsor

Learn Fastlane Business Skills & Get Profitable Within 30 Days...

Get Started Now

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom