We have provided financial services in Perth for nine years. In that time, we have built a track record based on honesty, integrity and results. When we get to know a client through an introductory consultation, one of the things we start out with is asking if they have done any investing yet.
Sometimes, we hear stories about how they got “advice” online or from well-meaning friends and it didn’t work out. We also hear stories about how they were “sold a bill of goods” by various financial advisors who provided “advice” that was just a cleverly-disguised sales pitch and was in their own self-interest.
Recently, a study led by Susan Thorp, Professor of Finance and Superannuation at the University of Technology, Sydney, indicated that financial advisors who give solid advice on the first issue are usually trusted, even if their later advice turns out to be bad. The study goes on to mention that there is potential for abuse by unscrupulous advisers who manipulate the process by providing easy, obvious advice to gain a client’s trust.*
Ms Thorp goes on to concluded that consumers “need more assistance in choosing advisers.” She also advocates tougher tests for certification as a financial advisor. Those who are interested in the full report can click the link at the bottom of the page.*
Why This Study is Important to You
This study is important because it calls attention to the fact that consumers need to be very careful when choosing a financial advisor. Advice from friends or advice obtained online can often lead to financial ruin.
Approved Financial Planners
At Approved Financial Planners, we believe our track record speaks for itself. We have a host of satisfied clients in the Perth area. We also have access to the resources of AMP Financial Planning Pty Limited, the largest independent financial services company in Australia.
Call 08 6462 0888 today.
*Susan Thorp et al, 30 March, 2014, Individual Judgment and Trust Formation: an Experimental Investigation of Online Financial Advice.