Oooooh we just said a swear word – “financial adviser”.  There is a stigma that surrounds the financial planning industry, stemming from the industry super funds and a very successful marketing campaign that has run on TV.

People will tell you that they don’t want or need a financial adviser. People will tell you it’s expensive and unnecessary.   People will likely also tell you that it’s far cheaper and the admin fees are way lower if you don’t have an adviser looking after your super fund. It’s my favourite when people start their sentence with “they say….”. Who is “they”?

Sadly, these same people probably have no idea what an adviser actually charges. Nor the services that are offered. Or how much they’re paying for their own super fund fees for that matter. Do you really know what fees you’re paying on your super fund? They’re not always as transparent as you may believe!

Mob mentality can mean that some people simply repeat what they see on the TV. The most common message people repeat is from the prolific industry super fund advertising campaign promoting the central message that they “do not pay commissions to financial planners”.

The key assumption of the campaign is that financial planners charge fees but do not add any long-term value to a client’s portfolio or financial position. Of course, there is no research to back this up.  And add to this that most of these funds have financial planners on staff. So while commissions are not paid to them, wages certainly are. And asset-based bonuses are as well. These financial planners are employees of the fund manager, so it’s unlikely they are going to give you unbiased opinions when it comes to your superannuation and insurance. Only an independent financial adviser will do that.

Industry super vs a financial adviser??  At the end of the day, financial advisers do more than just manage your superannuation.  If you’re not sure what it is that we can help you with, ask US!

SHANNON BENNETT

Southern Cross Financial