Hello all,
A friend has directed my attention to the below website after seeing a segment on today tonight
http://www.yourshare.com.au/howitworks.aspx
Anyone have any thoughts on this?
Very clever way to cut out all the middlemen, take a small cut and give the balance back to the consumer. I like what I’ve read and will follow it through more.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of HumourThere are a few of these companies. I've been using http://www.rebatefinance.com.au for a few years with my managed investments. Others that I looked at include http://www.investsmart.com.au and http://www.2020directinvest.com.au all appeared in an article last year by Choice magazine and are legitimate businesses licensed by ASIC.
I see plenty of positives to using such a company.. hey even if they keep some its money that I didnt have before.
But what are the negatives.. surely there are negatives!
The only negative is that you get no advice, but if you don't want any advice then there really isn't a downside. These companies survive because the current way the system operates is that you pay for advice whether you want it or not. I've had managed investments with Rebate Finance for a few years and I get my cheque three times a year as advertised, there is no other way that I know of to get the commissions back.
So do I have to re-do my loans and insurance using them as brokers?
I just cant understand… I understand that there are commissions payable in the industries of finance and insurance. I understand that if I dont use a broker the bank or the bank consultant recieves these commissions. I tend to think that fair enough, thats how they earn they pay packet (well maybe not the bank but the broker and or the consultant etc). If I use one of these companies what do they do contact NAB and my bank manager and say by the way you know those commissions you get paid, well we are going to take them and give them back to the client…. dont suppose that make my bank manager very happy.. and wont it send all the brokers broke?
What am I missing
If you use them for a loan then you have to refinance and go through the whole process. This is not the case with products such as managed funds and personal insurance. The institution issuing these products has room in their records for a "plan adviser" who receives the commissions that are payable,
Yes, you are right. If you love your broker or banker that much, then it’s all about choice….keep paying them for the next 30 years for signing you up to that loan. Or, on the other hand you would like some of that money back in your pocket – then you can get the same loan, from the same lenders and collect money every single year through YourShare.com.au Home Loans team.
Commissions paid to brokers for Home Loans are around $1000 a year for $500,000 loan..that broker would be getting the same 0.2% every year of the balance of your loan for the next 30 years.Managed Funds, Investments, Personal Insurance, Super, Allocated Pensions etc are all straight forward broker transfers..takes a few secs to fill in the form and that’s it.
Sorry, I meant to add that with these financial products, you can simply have the Plan adviser changed without there being any change to the underlying product. The plan adviser, in many cases, has the ability to alter commission levels down. Most of the rebating services remove upfront and contribution fees and make their money from trails, many also rebate part of the trail. For my products i have no contribution fees and receive half the trail back.
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