If there was one question you would like to ask a financial planner

LOL there are a lot of good books to read! But it is definitely on the list. I'm hoping to get to it sometime before the end of 2010! LMAO... it's on a long waiting list.

would you ask that to a real estate agent recommending you an investment property?

No, but then again, I'm not paying a rea (unless I've instructed a buyer's agent). As I have not paid the rea a fee for time or commission for a managed fund/product recommendation, I don't see a fair comparison.

Whilst I may ask questions and value some of their information, I don't take ADVICE from rea's. That's where the difference lies IMO.

how you decide to interpret and act on the advice doesn't change the fact that both planners and real estate agents are providing professional advice on your investment decisions.

not meant as a personal go at you player, just a general issue that i don't like in the way planners are perceived

Not taking it personally GG.

IMHO, a real estate agent provides a professional service, not advice. As I indicated in my original post my fin planner has been wonderful, particularly by way of insurance products, setting up SMSF, etc. I don't do managed funds as I prefer to be more active in choosing/selecting my entry/exits of more liquid assets. But for the record I'm heavy in property.

Now back to my question.....what is their net worth? If I am taking advice, I would want them to be far more advanced than myself by way of net worth so I can be guided to optimise my fin growth journey also.

In a similar vain, I guess, I wouldn't take nutritional advice from someone who eats fast food every day.

If my post causes an ill-perceived viewpoint, then that was not my intention......purely want to be guided by someone who has achieved more than me.

If a financial planner's job is to help me grow my nett worth, I think it is perfectly reasonable to ask them their nett worth. Completely up to them if they want to share their personal information, of course, but still a valid question. I know the old adage of the plumber having leaky taps, but if I'm taking my funds and 'risking' them, I would rather think that the person pointing me towards something has practised what they preach. An FP renting their house with no assets, driving a 30 year old car, threadbare elbows on their jacket, eating fried potato scallops with their morning cigarette, might cause me to be less comfortable than an independently wealthy proven performer. Having said that if he was driving a Lambo and had highrise flash offices and tons of clever salespeople I might be just as cautious

Sorry but that is not correct ... a real estate agent's job is as a salesperson working for the seller, not as an advisor working for the buyer ... completely different motivation and role, so it's an irrelevant comparison. Nowhere in your dealings with a REA do you sign anything that indicates they are providing the buyer with professional advice ... in fact most of what the buyer signs is disclaimers telling you to go and get your own advice.

Just my $0.02 (which is about my nett worth )

I only seek advice from those that I feel are at a higher level than I.

I would certainly ask about what strategies they use and their risk profile as we would need to be on the same wavelength to work well together.

I went to one guy (once only) who was so risk averse that term deposits were as exciting as he got! Not even managed funds. I am a very high risk profile and I like to be hands on. Took 4 goes to find someone who could work with me and I with him. Now I am terrified he's going to reitire to an island somewhere!

Absolutely, if they can't add any value to your situation...

I think the adviser's risk profile is irrelevant to your personal situation as they are supposed to be helping you. Certainly strategies that they may have used give you a better idea of their personal experiences.

That's extremely averse, it's about where the client feels comfortable, it is their investment and not the advisers. I've got clients ranging from bank accounts to geared managed funds and many somewhere in between.

Cheers,

Dan

Maybe the original concept is getting lost in the emotive assessment of how 'insulting' the question might be to an FP.

People risking their livelihood are these days placed in a position of assuming the worst (HIH, Kleenmaid, Bernie Madoff) and quite rightly might look for some 'personal' guarantee or PROOF of performance.

If I asked the question and the FP said "here's what I've done, here's what I'm invested in, and my nett wealth has changed 'this' much in 'this many' years" but "sorry I can't go into specifics regarding my personal nett wealth as it is irrelevant and/or personal" I would handle that fine and appreciate it.

However if they said "well after that spiel I just gave you and you asked how much I'm worth, my answer is NONE OF YOUR BUSINESS" then I would make sure the door doesn't hit me on the way out to find another FP .

Cheers

Yep.

**About faces 180 degrees and runs away**

The article below (and I don't necessarily agree with the word "shark" by the way) conveys some of the conflicts that afflict this industry especially the insto/bank based "advisors" or "salespeople"

Beware of the shark