retirement planning

Butcher vs. Nutritionist: Which Adviser Will Help You Thrive in Retirement?

Do you hate jumping on the phone with a financial adviser, only to be led down the path to being sold a financial product? Disguised as financial advice…

You probably witnessed many ads on facebook or google which are doing just that, trying to sell you a product masked as advice.

There’s one financial services provider from the US, a major player, who promotes guide’s such as the “5 minute Retirement Plan”. You’ve probably seen it from time to time. Great click bait by the way. But what they are really doing is selling their very expensive investment products.

I’ve seen a number of the plans and not one of them addresses anything about how the person is going to achieve their retirement. 100% focused on getting them into their product and taking substantial fees in the process. Their marketing is good, but sometimes you’ve got to look below the surface.

Then you have other financial services providers promoting a comparison of super fund performance. Tucking at the heart strings and preying on human greed. With the main aim, to sell you a financial product which they receive a nice fee from.

I’ve seen too many people fall prey to this one and it generally goes like this. They review your current super fund. Compare it to the investment portfolio they are running. One which has outperformed yours.

They then show you how much better off you’ll be by projecting that same outperformance into future years. All of a sudden you’re better off for retirement. But that’s only if that outperformance continues.

It’s like they have their own crystal ball…

Got to admit mine broke decades ago…but today people still fall for this one and end up being charged substantial fees and locked in for periods of time. How do I know? Well I’ve sat in front of people who fell for this talk, looked at the documents and once again the sole purpose was to sell them a product.

Then there’s the use your super to buy an investment property type. Gear up and increase your returns. Now for the right property, timeframe and the right reason, this could be a great strategy.

But I’ve seen just as many people lose as have gained through property. And who wins, the provider. They get the fees for administering and managing the Self Managed Super Fund, fees for finding the property and commissions for the loan taken out.

In the right circumstances and with the right timelines, some of these strategies could well be beneficial.

However, from what I’ve observed over the last two decades with some of these financial services firms, they are the butcher variety of financial planner.

Butcher Style Financial Planner

My local butcher closed down recently. But I’d go in there a couple of times a week. Paul was his name. I like to charcoal my meat and pork belly is my thing. Sometimes, I’d roll in and he’d say, Glenn I just had this nice cut of pork come in. You want it…

I’d take a look at it, and say yeah. Without thinking twice about how bad it could be even though it tasted really good.

At times, they’d just have some cabana just come out of the oven. Paul’s offsider would appear from out back with it, you want some? It was the best…

But Paul, my local butcher, wouldn’t tell me, “mate, you’re probably eating too much meat, you should really get a nice piece of salmon“.

He’d never do that, Paul’s job was to sell me meat.

It’s no different than going into a Mazda dealership. They are only going to sell you a Mazda.

That’s the case with some of these financial services businesses, they promote their product to help you plan for retirement, to invest your money better but they are really there to line their pockets and in most cases charge you a hefty fee for the privilege.

And some of us are suckers for this…once again greed comes into play…

Dietitian Style Financial Adviser

I know if I go an see a dietitian they are going to take lots of tests, take all my measurements and ask lots of questions.

I want to achieve a bikini body in time for the summer…

I want rock hard abs ready for summer…

I want to be fitter to keep up with my kids…

I want to build more strength so my day to day is easier…

I just want to be healthier and feel better…

The dietitian will do all the analysis and give you their best thinking and best plan for achieving those goals.

They are going to give you advice which is in your best interests, whether they’re a meat lover or vegetarian.

Here’s the thing, all would require a slightly different approach to achieve these goals.

The problem is many think their butcher is a dietitian.

A good financial planner who specialises in retirement planning is like a good dietitian. They are not there to sell you a financial product. When we meet clients for the first time, I don’t even know if they require a financial product or not. Once we’ve completed a full analysis of what they need, then we’re in a position to determine the right fit financial product if in fact they need one.

Yes, I only specialise in retirement planning and have over two decades of experience in this space. So I know a thing or two about retirement planning…

You want someone who is going to listen to you and understand the struggles you’re facing in terms of planning your retirement.

They should be able to clearly articulate the process or framework they use to help like minded people like you.

They’ll take the time to understand what you are truly looking to achieve in retirement (and it’s xx percentage of investment return).

In more cases than not, it’s more time. Time to finally hook up the caravan and not look back.

Time to plan those overseas trips you’ve been thinking about. Time to spend with people you care about. Time to pursue other hobbies and interests.

It’s about creating experiences and memories…

A good financial planner will help you get clear on what you really want.

Then, if they are a really good financial planner, they’ll complete an assessment of where you are currently and whether you are on track to fund your ideal retirement lifestyle. We call this the Retirement Feasibility Assessment.

It’s where the planner will map out your financial life over the next 10, 20, 30 years or more to determine whether your money will last the distance under certain assumptions.

Not only does it tell you how your financial life might pan out (i.e. will you be okay?), but identifies all the blind spots you have not thought about differently.

This data allows you to run various scenarios, what about if we spend more, what will that look like?  What if we retire earlier, how will that look? What if we went part-time and transitioned into retirement, what would that look like?

The financial planner you work with should involve a collaboration between you and them to build out a feasible plan you are comfortable with, not the planner. They are simply there as your guide.

Now you’re in a position to make your plan resilient. In other words, work on protecting yourself from life’s surprises by implementing some form of safety margins.

Optimising your plan at this stage is critical to make use of any tactics and strategies you can to bolster your retirement pot of gold before you retire.

It’s only at this time you should be considering whether the financial product you have is appropriate or not. It may or it may not. You see, I don’t even know if clients require a financial product when they first come to see us.

The reality is with the super system we have in Australia, it’s likely, but I’m agnostic in terms of financial products. What I will not compromise on is the structure of personalised plan because we know it works after working in this space over the last two decades or so.

If you’re trying to figure out your pathway to retirement. Wanting to understand if you’ll be okay financially in retirement and make confident decisions.

It’s time to book your complimentary Retirement Clarity Call. We’ll jump on a quick call and provide some insights into what needs addressing in your retirement plan and what may get in the way of achieving your dream retirement.

If you’re ready to gain more clarity, confidence and control as your approach retirement.

Book your Retirement Clarity Call by clicking here. We’ll have a quick chat about what you’re struggling with and brainstorm how you can resolve your retirement worries.

Glenn Doherty – CFP – Financial Planner | Retirement Planning Specialist |Retirement Planning Made Simple for over 55’s within 7 years of retirement

We work with people in Adelaide and around Australia virtually via zoom!

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Advice Disclaimer: Any reference in this publication to the provision of advice refers to advice of a generic nature, and should not be taken as product or investment recommendations. Before any action is taken based on the information provided, independent financial advice from a licensed financial adviser should be sought. Financial Freedom Project Pty Ltd ATF GA & DC Doherty Family Trust Trading as Jigsaw Private Wealth is a Corporate Authorised Representative of Exelsuper Advice Pty Ltd. The information contained in this publication is of a factual nature only and is not intended to constitute financial product advice. Information is current as at date of publication. This is an online information blog. It does not imply an offering of securities.

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