If you ever wanted an illustration of the disconnect between the media and real financial advice, it was delivered wrapped with a bow this week.
Robert Gottliebsen has spent more years writing about business and finance than I’ve been alive. On my desk sits a BRW someone left there. They thought I’d be interested. I was. It’s from 1999. Superannuation was undergoing more changes. Gottliebsen was the editor. And he looked like an old guy then. With more than 50 years experience under his belt, you’d think he’d seen it all.
Traditionally, advice is about finance. But in this boom, finance comes second to the aims of achieving overall personal happiness, an increase in peace of mind, fewer arguments with loved ones and reduced stress and anxiety.
I was stunned to discover that Australia’s first institutional advice organisation – the combination of IOOF and MLC – aims to achieve the above goals for its customers first. Financial planning comes second.
Quite a revolutionary idea Robert happened upon. Imagine well being and goals being the primary focus. I wonder who came up with it?
I touched on this subject but I had not fully grasped the radical nature of the IOOF plan, which has been conceived by Mota and his chairman Allan Griffiths.
Traditionally bank, life office and other financial advisers were about recommending a series of “in house” investments. Usually about three quarters of the client’s portfolio ended up “in house”. It was a horribly conflicted system often infected with secret commissions.
Yes, ‘traditionally’. It was certainly en vogue for a time. Some abandoned it back in the late 80’s and early 90’s. Although many have persisted with the idea until very recently.
The radical nature of this IOOF plan is nothing more than what goals based advisers have been doing for over 30 years. Now when a big institution comes to the party to save its skin, it gets a pat on the head from Australia’s most experienced business journalist? C’mon Bob.
This week the staff at Mancell Financial Group held a surprise event for Peter Mancell. Mancell Financial Group turned 40 this year. With COVID and the business moving office, there hasn’t been much attention given to the milestone. Part of my job was soliciting testimonials. They came from colleagues and clients.
These were people who had entrusted Peter with more than just their money. They’d given him a full insight into their lives and their goals. He’d given them trusted counsel. For all those years of service they were now paying tribute to him. A trusted adviser in more than money.
On the colleague side, one of the testimonials came from Jeff Troutner. Jeff is featured in the Dimensional video below. He’s been doing the same for nearly 30 years. Which shows the concept is a worldwide movement. I can’t speak of any of the other advisers in the video, but I’d imagine most have at least a decade of goals based advice under their belts.
It’s a serious disservice to the advisers who have made this commitment to putting their clients at the forefront to now suggest IOOF has conceived of such a revolutionary idea.
This represents general information only. Before making any financial or investment decisions, I suggest you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs. Don’t make financial or investment decisions on the basis of blog post or sourcing advice from internet forums, if you’d like a introduction to investing, please consider reading Your Investment Philosophy, which offers an evidence based primer for building your own investment philosophy.
