Where to Find The Best Financial Advice

Ldunedinscum on 24/04/2018 - 20:21

Hi All,

I have saved hard and managed to pay down $70k in student loans in two years since I left university. I now am faced with the issue of not knowing where to start putting my money. I have no assets such as a mortgage or car, nor any remaining debt. I have read several online suggestions such as "save 6 months of income into an emergency fund", "max out your super contributions", and "invest in stocks/ETFs". I have considered seeing a financial advisor to get validation of these suggestions prior to undertaking them, however, I'm finding it hard to assess their expertise and qualifications online because they all feel like marketing gimmicks. Further no one in my family is overly financially 'savvy' so they are not too helpful.

My question is can you please recommend a good financial advisor/agency, or any great books on saving that would be worth reading? If not, do you have any strong financial planning or savings tips for me?

Thanks!

Financial Financial Plan Financial Planning

Comments

  • Godric on 24/04/2018 - 20:34
    +6

    Ozbargain

    Godric on 24/04/2018 - 20:34 (Collapsed - Offtopic. Show)
  • [Deactivated] on 24/04/2018 - 20:49
    +1

    your bank

    [Deactivated] on 24/04/2018 - 20:49 (Collapsed - Offtopic. Show)
    • RockyRaccoon on 24/04/2018 - 22:01
      +3

      Guess some cant see humour when its presented to them……

    • JIMB0 on 24/04/2018 - 22:13

      Which bank?

  • Detective Pikachu on 24/04/2018 - 20:56
    +3
  • 2ndeffort on 24/04/2018 - 21:10
    +4

    After reading about the Financial Services Royal Commission I'm not sure there are any worth trusting

  • dcep on 24/04/2018 - 21:11
    +3

    wrong move bro!

    you could've 70k high yield investment instead of paying down hecs

    dcep on 24/04/2018 - 21:11 (Collapsed - Offtopic. Show)
  • lbsyc on 24/04/2018 - 21:19
    +1

    I think it's fine meeting a few financial advisors from bank, they don't charge for initial consultation afterall. You don't have to trust anything they say but you'll still learn from them just treat it as free lessons.

    • kahn on 24/04/2018 - 21:28
      +2

      You don't have to trust anything they say but you'll still learn from them just treat it as ~free~ lessons.

      Reminds me of my visits to the local whorehouse.

      kahn on 24/04/2018 - 21:28 (Collapsed - Offtopic. Show)
  • Randxyz123 on 24/04/2018 - 21:20
    +2

    Why on earth would you pay off hecs instead of a overseas holiday ?

    • dunedinscum on 26/04/2018 - 19:06

      I'm from NZ so my student loan had up to 4.5% interest with annual minimum repayment requirements. Figured paying down a mandatory 4.5% interest loan was better than the risk of investing short term or keeping it in the bank.

  • kahn on 24/04/2018 - 21:25
    +3

    As your trusted Ozbargain-approved financial advisor, I advise buying a Merc A200 as a high yield investment and pay off your new car loan.

    kahn on 24/04/2018 - 21:25 (Collapsed - Offtopic. Show)
    • 2ndeffort on 24/04/2018 - 21:38
      +1

      Rich wise man once told me the secret to getting rich was: If it flies, floats or F&^%ks ….. rent it

      • kahn on 24/04/2018 - 21:44
        +3

        Nothing about submarines?

  • PissLUR on 24/04/2018 - 21:57
    +1

    High Interest Savings Account. 3%pa.

    RAMS, UBank.

  • mskeggs on 24/04/2018 - 22:05
    +4

    I understand that people would like to get an expert to advise them on finance, after all, if your pipes are blocked you call a plumber and if your car won't start you call a mechanic.
    I'd urge you, however, to spend some time becoming familiar with financial matters yourself.
    Consider that a plumber might charge a few hundred dollars and a mechanic a few thousand, but a poor financial decision can cost hundreds of thousands.

    If nothing else, knowing a bit about finance allows you to assess the advice your receive, in the same way learning a bit about cars would allow you to understand if a car won't start it isn't because of a blown headgasket or worn transmission, if a dishonest mechanic tried to scam you by claiming so.

    So my 3 point plan to understand finance:
    - find a trust worthy accountant to do your taxes. This is not essential, but I think it is helpful to have somebody to look at your income and tax deductions and make sure you are claiming the deductions that are applicable, and to be able to have somebody with financial expertise who has some familiarity with your affairs if you need to ask a question like "I am thinking of an investment property, would it be tax effective?". I think this is an area where pro help is useful, as the detail of tax law changes regularly, and it pays to have somebody across it.
    - Get familiar with https://www.moneysmart.gov.au/ It offers basic info on financial topics like debt, investments etc. It is free and assumes no prior knowledge. It is organised by topic to allow you to look at what is of interest, and it is all Australian.
    - Start learning about investments. There is no rush for this. A super secure high yield bank account will pay close to 3%, while a diverse investment mix might deliver 7% but with somewhat increased risk. So if it takes a year or so to begin to learn about investing, it isn't the end of the world, only a few dollars a year difference for each $00 you are investing. Of course, that doesn't mean you can put it off forever, as those few dollars compound and add up over years.
    I think a good source for mainstream investing info, and generally up to date finance info, is Money Magazine. Most libraries have it for free, and it is generally written for generalists, not experts, and with at least a couple of columnists who are articulate. Other people recommend Scott Papes' book, which I haven't read, but it has been on the best seller list so long it is as mainstream as it gets.

    Once you have understood what everyone else is doing, you can start to decide where you want to invest, what level of risk you are comfortable with, and the type of investments that seem sensible to you.

    In the future, you might have more money and more sophisticated investing needs (hopefully!) and want to get a financial advisor to contribute ideas and plans, but by spending time learning about finance previously, you will be able to better assess the quality of their advice, and protect yourself from bad ideas or scams.
    The thing I really, strongly, advise against is using a financial adviser before you have a good level of knowledge yourself. That is how all the people scammed in the banking royal commission, and how bad advisors stay in business.

    • Master Bates on 25/04/2018 - 00:18
      +1

      people recommend Scott Papes' book

      The Barefoot Investor book gives you a step by step approach to pay down your debts, set up fee free bank accounts, open a low cost super account and more, in order to create financial security. It's pretty straight forward stuff aimed more at the financially incompetent. You seem like you already have a handle on the basics, so it you might want to skip it. Then again you can get the Audio Book for free using this deal.

      If you're keen to invest, you might be better off signing up to the Barefoot Blueprint where Scott and Mike Kemp (the Blueprints' Chief Analyst) recommend stocks to buy on a monthly basis. Scott actually invests his own money in the stocks he recommends. The Barefoot Blueprint cost $397 per year, but there is a 365 day satisfaction guarantee on the subscription. There is also a forum and other useful articles provided.

      • jhmtaylor on 25/04/2018 - 09:22

        I think investing in stocks is an excellent long term strategy. I would not invest in individual stocks unless you are prepared to work at it 1 hour per day. Most small investors think they can out perform the market. Less than 20% actually achieve this. Instead invest in low cost LICs or ETFs that closely track the ASX 200. Also consider the same that track overseas indexes. This is low risk, low effort. It is also comforting to know that you will outperform 80% of the other investors.

      • Lastchancetosee on 25/04/2018 - 09:57

        First, well done on having the discipline to save so much. Getting a home paid off could be a good next step. Agree that The Barefoot Investor is useful, as it also covers aspects of financial goal-setting. Haven't tried the Blueprint, so can't comment.

      • jsheroes on 26/04/2018 - 19:30

        Have you used the blueprint? Recommend it? Made $?

  • RockyRaccoon on 24/04/2018 - 22:07
    +2

    Getting financial advice means nothing, unless you have some sort of direction to give any registered financial planner.

    Garbage in Garbage out.

    What do you want to achieve.

    Early retirement?
    Planning for a Dynasty?
    An Estate (house home Property portfolio )?
    Fancy cars/women?
    Family?

    Different advice will come depending on what you want to achieve

    Hence the example you gave on online suggestions. Each maybe appropriate depending on what you want to acheive.

    • 2ndeffort on 24/04/2018 - 23:37
      +1

      Out of interest what's the advice for Fancy cars/women …. asking for a mate!

  • chumlee on 25/04/2018 - 07:06

    Seems like you are young so don't put money into super as it's untouchable til late in life.

    Save up a few months worth of expenses. Then put money aside in an interest account and keep building on it each month. Put some into shares if you like, such as CSL but best to keep saving for a property. Rent it out if you don't need to live in it.

    You seem like you are good at saving so keep doing it.

    The royal commission into banks is showing you need to take your financial future into your own hands. No one cares more about you than you.

  • dp1 on 25/04/2018 - 08:40
    +5

    Mate, the average Australian saves less than $600 a month (depending on which source you believe). You have managed nearly $3000 a month for 2 years. I suggest YOU become a financial adviser!

  • [Deactivated] on 25/04/2018 - 09:32

    I would suggest reading and building up your financial literacy and making your own decisions.

    If you want financial advice, you should try out a few advisers to get a sense of the spin and run around they will give you.

    In the end, the best chance of getting quality advice is to pay upfront (rather than hidden trailing commissions). But you don't have many assets to begin with. And the advice won't be worth it. You'll get the same advice in my other places.

  • CactusReloaded on 25/04/2018 - 13:42

    All in crypto. You only live once. No joke. Bit the best you can.

  • Dont Care on 26/04/2018 - 19:22

    hookers and drugs

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