I have just listened to Alan's "Four rules in choosing a planning adviser" and was relieved when Alan got to the last point which I had been waiting for, namely: "Make sure the planner is offering an hourly rate rather than a commissioned based payment system."
Alan diplomatically noted that most planners are decent and capable people and only singled out the bank planners as being in a compromised position (my words) when it comes to advice. The point I wish to make though is that very few planners charge other than on a commission basis. So hence the pickings are pretty thin.
I was mightily relieved to hear Minister Josh Frydenberg make this very point just two weeks ago and this is the first time I have heard any politician of any persuasion latch on to this point. In my view an advisor should not be allow to call themselves "advisor" if they are paid on a commission basis. However if the politicians have the fortitude to enact that as law then possibly best to sell down a few bank shares.
Protection against market falls
I subscribe to your service and am seeking advice on funds/products (normally equities) that provide 'downside protection' in exchange for some offset in performance (eg 2-3 per cent).
Would "Perennial Defender - Australian Shares" product be an example? Maybe you have already written about these products and you can point me in the right direction.
Editor’s response: Thanks for your letter. We published a feature (but not a recommendation) on Perennial Value’s Wealth Defender Equities on April 15: Perennial’s LIC with a twist.