FxJalarupa
Well-Known Member
Generally the FA should be doing a full service... IE
Estate Planning
Tax optimization (of which and RA and TFSA and Endowment could be crucial parts)
Investment Forecasting and Risk Management
Income Modelling
Life and Risk Benefits
Short Term cover
Medical Aid and GAP
Very seldom are all of these boxes ticked... But we are staring to see a trend in the industry where Advice is moving away from Upfront Commission towards As and When This due to something called the Retail Distribution Review (RDR)
When RDR comes into play the fly by nighters will be forced out of the industry and those who have large short term, medical and large amounts of investment assets under management will be the only players in the game...
- will an advisor spend their time, paper petrol and expertise without wanting something in return...?
Unlikely unless they are one of those who have a MASSIVE AMOUNT of income generating assets like the above mentioned
I have seen advisers who take no upfront commission and between 0.15% and 0.25% on going annual management fee on lump sum investments (because they can) - Seek out those guys... but don't go to them with your little R500 a month RA because they will tell you to go for a hike... because believe it or not but the FAIS act requires them to service you on a annual basis and they are liable for their advice so they carry immense risk for the business you do with them...
Remember there is a snake oil salesman... and then there is a pro...
You will know it when you see a pro... there is no robo solution that can currently stand toe to toe with the real thing ... Although they are few and far between... ALWAYS remember though that commission is negotiable and if the guy/gal has done a good job why should they not earn their pay...?
Estate Planning
Tax optimization (of which and RA and TFSA and Endowment could be crucial parts)
Investment Forecasting and Risk Management
Income Modelling
Life and Risk Benefits
Short Term cover
Medical Aid and GAP
Very seldom are all of these boxes ticked... But we are staring to see a trend in the industry where Advice is moving away from Upfront Commission towards As and When This due to something called the Retail Distribution Review (RDR)
When RDR comes into play the fly by nighters will be forced out of the industry and those who have large short term, medical and large amounts of investment assets under management will be the only players in the game...
- will an advisor spend their time, paper petrol and expertise without wanting something in return...?
Unlikely unless they are one of those who have a MASSIVE AMOUNT of income generating assets like the above mentioned
I have seen advisers who take no upfront commission and between 0.15% and 0.25% on going annual management fee on lump sum investments (because they can) - Seek out those guys... but don't go to them with your little R500 a month RA because they will tell you to go for a hike... because believe it or not but the FAIS act requires them to service you on a annual basis and they are liable for their advice so they carry immense risk for the business you do with them...
Remember there is a snake oil salesman... and then there is a pro...
You will know it when you see a pro... there is no robo solution that can currently stand toe to toe with the real thing ... Although they are few and far between... ALWAYS remember though that commission is negotiable and if the guy/gal has done a good job why should they not earn their pay...?