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

Financial advisor business

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

Leigh Farrell

Contributor
Nov 27, 2017
49
61
44
34
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
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Tommo

Silver Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jan 21, 2018
414
685
273
66
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
838
2,996
655
31
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.
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Sponsored Offers

  • Sticky
MARKETPLACE Fox's Web Design Guide: Earn $100K this year (Yes, 2020!) and Go Fastlane
How do I sell to a different country with an accent? And a foreign number. Cold e-mails don't...
  • Sticky
MARKETPLACE Kill Bigger Incubator
Hey @Cruiser I just shot you a reply! Amazing product BTW!
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
Well, we made it halfway through the year. Don't know what the rest'll bring, but it's gonna be...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
Not really a teaser but it does employ a fictional story, so that is similiar. This upcoming...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Dropping a quick note in here to say... if you are on TFL, you are part of an elite group of...



Forum Sponsor

sponsor

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom