Appropriate product selection

Scenario:

Mr and Mrs Robertson had been seeing the same financial adviser for many years. Recently the adviser had changed the company it was licenced by and during their annual review the adviser recommended they change superannuation account providers.  The new account was what is known as a “wrap” account and was affiliated with the new licensee company.  The fees of the wrap account were very high and despite the adviser’s claims it was a superior product, she sought a second opinion from Andep regarding the advice.

Strategy:

Andep reviewed the advice given to Mr and Mrs Robertson and discussed with them their situation and investment preferences.  They were not interested in, nor needed, an overly complex account and since they were in pension phase all of their existing assets could be sold tax free and moved to a more appropriate account.  Instead of paying $___ per annum in fees for two pension wrap accounts and an investment wrap account they are now instead paying $___ per annum for two pension accounts with a major Industry Superannuation Fund and no annual fee for share investments purchased through an online broker.  Andep offers light touch financial advice and prefers, where possible, for client’s to retain complete control of their own finances.

*name has been changed to protect the client’s privacy.