A lot has happened recently in the financial advice sector and it has resulted in SMSF trustees showing reluctance in seeking professional advice. Scandals atop scandals and this is what happens! The mind-space of SMSF trustees is laden with the worst of fears and they know that the adviser on the other side might be a guy not interested at all in their wellness and just out to earn a commission by duping them. Certainly not the best frame of mind when you are seeking professional investment advice.
Reluctance to seek financial advice
This trend, however, may prove detrimental for the SMSF industry as a whole. Earlier, this sector was touched upon by high-wealth individuals who liked the flexibility and control of this investment vehicle. The good thing with them was that they knew the investment grind and could take the DIY route because they were not short of know-how.
“Mums and dads” may falter without financial advice
Today, many mums and dads are joining the SMSF cavalry and not all of them are well-versed with investment strategies. What should then be their natural course of action? Of course, going to the professional advisers, what else? This is why an apparent lack of belief in financial advisers can be unhealthy for the performance of the SMSF industry.
The emphasis should be on investment education
Things remaining as they are, the wannabe SMSF investors must not lose focus and try to educate themselves inasmuch as they can. Such education can be achieved by attending seminars, reading financial press, and investment-oriented literature.
Can you cite an instance where you feel you were duped by a financial adviser?