Caveat Emptor
Financial Guru is a strong advocate of obtaining financial planning advice. Whilst some people manage their finances well, the overwhelming bulk would gain some benefit from receiving advice on building, protecting and managing their wealth.
It is unfortunate though, that an industry that can provide so much assistance suffers from such a poor reputation and continues it seems to shoot itself in the foot. (Mind you, it has a lot of assistance from the Industry Superannuation funds and others.)
The worst aspect of this is that it can deter people who really need it from getting advice. Consider the following.
· Every industry has its crooks. Where there is money, you are going to attract the charlatans, the quick money merchants and outright criminals. No laws, regulations, or diligent regulator will have any effect on them. Like the plague, they will always be with us.
· The overwhelming number of advisers are honest, knowledgeable and have their clients best interests in mind. They hate the crooks more than you do.
· Notwithstanding good intentions, there is a wide variation in skill levels and the quality of advice being given.
· A good adviser will concentrate on giving good advice. The product comes second.
· Some advisers specialise and others are GPs. You choose what suits you.
· If you go to a bank (or other institution), you shouldn’t be surprised if you finish up in a bank product. It’s your choice.
· You can’t legislate common sense. How many people fall for the Nigerian scam each year in spite of all the publicity? How many fell for the Wattle scam when common sense tells you that 50% interest is simply not possible?
Knowledge is power so do some reading first. If you are not comfortable with the advice, don’t take it. If you are not comfortable with the adviser, find another but don’t be deterred from getting advice. There are more good guys who do their best every day, than there is the other variety.
Unfortunately though, there is no test you can give which will tell you whether the adviser is honest, has integrity and is looking after your best interests. ‘Caveat Emptor’ – Buyer Beware.
POSTED: 22-Sep-2009