Superannuation Warehouse is an accounting firm and does not provide any financial advice. All information provided on this website has been prepared without taking into account the Trustees’ objectives, financial situation or needs. The purpose of this website is to introduce Trustees to the different types of financial advice in the market.
Financial advisors are usually independent practitioners who operate in a fiduciary capacity, whereby the client’s interests come before their own. Clients are generally required to answer a series of questions that allow the financial advisor to devise the optimum investment strategy for the client and the Fund.
With Financial Advice, clients are constantly in contact with their financial advisors so that the advisors are updated on the client’s investment objectives and make the necessary changes if required. There is a lot of human intervention in portfolio management with traditional financial advice.
Financial Advisor
If you would like to use a Financial Advisor, consider using Alex Camacho from ALX Wealth and Joshua Logan from Logan Private Wealth.
- Alex Camacho from ALX Wealth provides financial advice tailored to clients managing their insurance needs within an SMSF. Alex can assist with strategies relating to Life, TPD, and Income Protection insurance, ensuring they align with SMSF requirements. For personalised advice, please get in touch directly. For more information, see the ALX Wealth website: alxwealth.com.au.
- Joshua Logan, CFP®, Principal Wealth & Property Adviser of Logan Private Wealth and Logan Property Advisory, delivers an integrated suite of wealth management, property advisory, and tax strategy services, with a particular focus on SMSF clients. With over 11 years of experience spanning Accounting, Private Wealth and Wealth Management — and having personally invested and managed more than $50 million, whilst also being part of a two-adviser team to manage approximately $500m — Joshua is a committed advocate for conflict-free advice.
His services are free from commissions, product restrictions, third-party payments, and volume-based incentives. Joshua and his team are dedicated to recommending only the most suitable and high-quality solutions available in the market, tailored to your unique goals, values, and long-term objectives. For more information, see the Logan Private Wealth website: https://loganprivatewealth.com.au/
Perceived disadvantages to using a financial planner
There is a perception that financial planners may not act in the best interest of their clients. The main disadvantages to using a financial planner are as follows:
- The fees charged by most financial planners are often regarded as overpriced
- Some financial planners make investment decisions with their clients’ Funds that benefit themselves, not the clients. In these situations, the financial planners might pressure their clients into making risky investments. This could have disastrous consequences for the Trustees as failed investments would mean the loss of their retirement Funds
The Hayne’s Royal Commission on Financial Advice
The Government announced the Royal Commission into misconduct in the Banking, Superannuation and Financial Services Industry in 2017. The result is that almost half of all financial planners exited the industry due to dramatic changes in the sector.
Justice Kenneth Hayne identified six main standards that he recommended via the Commission to be implemented when providing financial advice and these can be summarised as follows:
- Obey the law
- Do not mislead or deceive
- Act fairly
- Provide goods or services that are fit for purpose
- Deliver goods or services with reasonable care and skill
- When acting for another act in the best interest of that other
Although these are honorable objectives, they created major changes within the industry, and many Trustees are skeptical of the financial advice sector.
We do not require clients to obtain financial advice, and it is not a legal requirement to use financial advice when setting up an SMSF or for the ongoing management of an SMSF. Although, if you wish, you can obtain financial advice. Please click here if you wish to set up an SMSF.
