OK, Im getting the old “experienced applicants only” line whenever I apply for a job as a financial planner. Of course they wont GIVE anyone experience, but they are demand it from new employees.
So I thought I could get some “experience” by helping a few people here. Preferably people who have already visited a planner, so that:a) whatever I say is not taken as advice
b) I can compare my answers with those given by someone with a clueI realise its gonna sound stupid when an employer asks me about where I got my experience, but having none at all is getting me nowhere, so I got nothin to lose. Anything I learn will be valuable, so use & abuse me.
Hell even invent a situation if you dont want a strange dude on the net lookin into your finances.
I do have a DPF so I have done all the theory.email me in confidence:
hi crashy
would it be ok to email you and run some numbers by.
regards
alfI’m surprised they want any experience. Most of those that I’ve spoken to in the past haven’t had a clue.
Rod.
Rod
I think what they really mean by experience is
“can you sell our products even though they are not the ideal product for the client, and pretend you know what you are doing?”
Hmm – and you are pursuing this career why exactly …. sounds like torture!
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Melactually I was getting some careers advice from SIA yesterday, was told the DFA (advising) I have is better than the old DFP (planning), DFA has 8 modules, while DFP has 4, which means, anyone with DFP only knows 50% of what they should……hmmm….they prefer 50% knowledge and some experience to 100% knowledge with no experience. strange
Not strange – suss – are they looking for existing ‘experience’ or cold hard cash paying existing ‘clients’ ?!?
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MelMel
lol that could be it.
what makes me laugh is that in the job ad they state “we are an ethical and responsible equal opportunity employer”
“can you sell our products even though they are not the ideal product for the client, and pretend you know what you are doing?”Yep, those are the ones I met.
Rod.
Hey crashy,
I just noticed you’ve got your 100.
Well done.
Rod.
awww geez no 3rd star? booo
Vince – you emailed me but your address is getting bounced. got another email?
Hi Crashy, congrats on your 100. I’ve always enjoyed reading your posts.. keep them coming[
]well I got 5 or 6 emails, obviously everyone here thinks they have perfect finances, or maybe they just dont trust me
OK, free for all, ask me anything.
Heres a sample of a question I was asked, identity witheld of course:
“I have $80k in shares, $20k personal loan, $6k credit cards 17%, negative geared sydney IP, sydney PPoR mortgage, $100k in term deposit, and earning $200k. Any ideas?”
My reply:
1. sell the shares, cop the CGT. with the all ords up here, theres not much upside for a while.
2. either open a deal4free account, invest $4k @ 5% margin (your $80k back on) OR wait for the market to fall before doing this.
3. this leaves $76k (assuming no CGT), use $20k of it to pay off personal loan.
4. this leaves $56k, pay off $6k credit card.
5. this leaves $50k. the sydney IP should be sold, you wont get a better price for 10 years. consider using these funds plus your spare 50k to buy several properties in QLD. or you could pay off your PPoR, but with rates @ 6% you are better off investing in a fund paying 9% rather than reducing debt costing 6%. you might also look at a managed fund. funds can make money when the market falls also.
6. if you dont have health insurance, get it. not having it means you pay medicare surcharge of extra 1%, or $2k a year, so does your partner.
7. consider salary sacrifice into super. pay 15% tax rather than 48.5%. possibly set up a DIY super, and invest in QLD property.
8. set up an interest offset account between your mortgage and term deposit. you are paying 48.5% tax on term deposit interest, while claiming nothing on PPoR interest. offsetting this interest will save about $2500 a year in tax. once the term is up, pay off your mortgage.
old “experienced applicants only”Would you really want to take advice from an old financial planner who is still working???
I personally would go for the young Finanicial wiz who quit working b4 he was 30 or younger. He’s the guy I’d rather learn from.
Please.. Financial planners plan for you who want to be poor when you retire. I plan to retire young and retire rich:)
I fired my financial planner who was 62 when I bought my second IP.. He had advised me to put that money into my super fund… hehehehe..
Calron the Alcamist
Turning things into gold is fun.
[email protected].a[]In truth there is no right or wrong answer or question for that matter. Only the one that is never asked is open for debate !
[8D]
minus the shades he he
MichaelSounds like the sound of one-hand clapping (see Simpsons for solution to Koan) or the tree falling in the forest with no-one around!
Crashy wouldn’t the tax on Super be 30%, 15% + 15% surcharge as earnings over 100K?
Cheers[
]Crashy, congrats on your motivation, you probably don’t fit the fin planner ‘image’, at least the ones I have seen and wasted my time on in the past.
Agree with above advise, get rid of any consumer, non-deductible debts first.
Shares, could do cov calls against them, extra income.I would love a share portfiolio for that purpose.If the shares have been held less than a year, extra CGT.Deal for free, risky, unless you have a water tight trading strategy. My sister is using “osprey system”, fantastic return so far, you must stick to the rules though.
I haven’t been game to try it yet.
Use residex to suss out growth/good rental demand areas, QLD is about the only area left.
don’t know if sydney property is at is peak, check with residex, if still growing, hold it a bit longer, especially against good income, one or two neg geared properties don’t matter that much if the growth is there.
I have only one or two financial adviser who are the best because he supports the cash pos. concept and thats Ed Burton and Steve, who can also give you good ideas.Hi again, just edited the last post.
Crashy, my only other concern re free advise, I wonder if you might have some liability issues?
You never know these days.
Usually, all professionals have public liability insurance if employed in their profession.Regina,
The Tort of Negligent Mistatement says that three conditions must exist to be liable:
1. a legal duty of care owing
2. a breach of that care
3. financial loss as a result of the breachIt is very difficult to prove #2, even if #1 is by the book. I doubt #3 could result could result based on my comments, and #1 would not be established. Secondly I do not take direct control of their finances and never have access to them, in fact I do not even know their identity. But I do see your point.
“Shares, could do cov calls against them, extra income.I would love a share portfiolio for that purpose.If the shares have been held less than a year, extra CGT.
Deal for free, risky, unless you have a water tight trading strategy.”
Covered calls are where you write one call, and buy another call with a higher strike. This has an element of risk (if you do not own the underlying shares) if there is a slow uptrend. perhaps what you mean is a buy-write, where you write calls on the stock you own, producing extra income, thus increasing the yield of the investment. I recommend this strategy, as it gives the best risk/reward of any option strategy. Just make sure you only do it on high yield div stocks. You could compare this strategy to positive geared IP’s, in fact, a lot of my book will be about positive geared share strategies.
You could do covered calls on your stock as well, but its a bit like trying to have your cake and eat it too. Its messy, stressful, and returns will not be as good as buy write alone, as you are spending part of your income on higher strike calls. it is fairly likely your stock will not jump 30% suddenly one day, which is the only reason you would buy the extra call. in a slow uptrend, you can have the written calls expiring worthless (assuming you were not greedy by writing them at the money), while also benefitting from capital growth in the fpo. But you probably already know all this. If not, feel free to ask.re D4F, in this case I was suggesting they replace the shares they already had, but at 5% margin rather than the existing 100%. risk therefore is the same. I wasnt suggesting they take up trading, just because they open a D4F account. It can be used as an investment vehicle also.
brianhc
“Crashy wouldn’t the tax on Super be 30%, 15% + 15% surcharge as earnings over 100K?”
Quite right, thanks for correcting me. ‘experience is knowing you have made the same mistake before’. However in this case it didnt matter, as the person was self employed. still, I would rather pay 30% than 48.5%. dont you just love our tax system?
Hi Crashy,
Help is on the way. Your appeal is that you have not been corrupted by your industry yet. [][8D][]
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