Where are You Getting Your Financial Advice?
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.*