Banking Royal Commission

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kfchugo
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Banking Royal Commission

Post by kfchugo » 31 May 2018, 11:50

We have all seen the horrendous and scandalous stories emerging from this commission....the very bastions of financial probity in our society have been shown to be charlatans and crooks. Our financial services industry seems all too anxious to rip every cent they can from their unsuspecting customers.
Financial planners/advisers have come in for huge criticism, and maybe I have been remiss, but I have not seen much about the PRODUCTS these guys are flogging to us. Some time ago, I sold my home and downsized into a retirement village which also gave me some funds to invest and subsidise my pension. Wherever I looked, investments, managed funds etc all came with a raft of fees.....entry fees, exit fees, account keeping fees, management fees, adviser fees/commissions etc. I could not find any explanation or justification for these fees, like everyone else, I just had to pay. It seems that EVERYONE else involved is guaranteed their income - they just deduct it from my account, but it is MY MONEY that is invested and at risk. Should there be growth/profit in the portfolio, only THAT falls to me. I am CERTAIN that many of these fees are just a ripoff and are unjustified (why should anyone have to pay to deposit funds.....then pay again to withdraw?) .....does anyone here have any more information on what the Royal Commission might be doing to investigate this aspect? I am sure that some or all of my "silver peers" would be in similar circumstances.

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Dreamweaver
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Re: Banking Royal Commission

Post by Dreamweaver » 31 May 2018, 12:16

From an ex financial advisor at NAB
After 6 years at NAB, today I take leave to greener pastures elsewhere!.

I’ve worked with a lot of great people who I have enjoyed working with, smart people with great work ethics and skills who I have learnt much from and beautifully natured people who only want to help others and I have gained much in raising funds for charities. I have seen people come and go, made friends and now it is my time to take a quick break and then back to work and a new adventure.
I dream, therefore I am.

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Perrorist
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Re: Banking Royal Commission

Post by Perrorist » 31 May 2018, 12:20

I've never used a financial planner, for much the same reasons as Hugo mentioned.

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Slapsy
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Re: Banking Royal Commission

Post by Slapsy » 31 May 2018, 12:53

Since retiring I have had two financial advisors. The first one,I picked myself,was employed by AMP on a salary. He assured me he received no commissions,and showed me proof of that. He gave me great advice,and my investments grew. The fees were only small.
One day I received a phone call from somebody telling me that he was my new advisor. I got his number,and immediately rang AMP. They told me that they had recently restructured,and this new person had bought my account. I was given no say regarding that decision,and still do not know what happened to my original advisor. When I received my next statement I noticed extra fees,so I contacted AMP. I was already losing confidence in my purchaser.
Because I did not receive a satisfactory answer from them,I withdrew all my money and reinvested elsewhere. It was only a modest amount,but I still have the original capital,plus the earnings. That was 10 years ago.
I know that there are some sad stories coming out of this Royal Commission,but there are also stories of get rich quick schemes gone horribly wrong. One thing I learned from my original advisor was to be wary of advice that sounded too good to be true. I have never forgotten it. I have listened to retirees blaming advisors for losing their houses through poor decisions that they have made themselves. It may,very well,be poor advice,but they made the final decision,didn't they.
The punters know that the horse called Morality rarely gets past the post,whereas the nag called Self-interest always runs a good race. ..... Gough Whitlam 19/10/89

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kfchugo
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Re: Banking Royal Commission

Post by kfchugo » 31 May 2018, 14:14

These days, to become a financial planner, you have to do a fairly arduous course and qualify.....I was thinking of doing it at one time. The problem is the complexity and diversity of financial markets and products.....we see financial advisors for much the same reason that we get others to do our tax returns....the ramifications of getting it wrong can be severe. I have a good tax consultant in whom I have great confidence, but just dont know WHO I might rely on for investment advice......they all seem to be charlatans, only interested in THEIR commission. I had hoped that the Royal Commission might look at the fees and charges, not only of the advisers but also of the products they sell.

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grandduke
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Re: Banking Royal Commission

Post by grandduke » 10 Aug 2018, 14:38

Having watched this royal commissioner at work i doubt he will let anything
slip by on his watch.
“You see things; and you say, ‘Why?’ But I dream things that never were; and I say, ‘Why not?’”
George Bernard Shaw

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Perrorist
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Re: Banking Royal Commission

Post by Perrorist » 10 Aug 2018, 17:42

He's a sharp cookie.

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