Market for lemons: Why super fund members don't want to pay for adviceBY JASON ANDRIESSEN | THURSDAY, 1 FEB 2018 4:54PM It's a shame for super funds that so few of their members access advice in the years around retirement. For members, accessing advice supports better financial decisions, which ... Upgrade your subscription to access this article
Join the growing community of superannuation
professionals with unlimited access to our latest news, research and analysis of the industry.
Become a premium subscriber today. |
Latest News
Up to two million Aussies could face super tax: FSC
New modelling from the Financial Services Council (FSC) shows that up to 1.8 million Australians currently in the workforce could be impacted by the proposed superannuation tax under one of the four scenarios.
MP says Coalition will 'fight to the death' over $3m super tax
Nationals Senator Matt Canavan says the Coalition will "fight to the death" to ensure the taxing of unrealised capital gains is abandoned.
HESTA turns the lights back on after service shutdown
HESTA has completed the transition of its member administration services to GROW Inc, restoring online services after a seven-week disruption to transactions and app access.
Super needs customised, personalised approach: FSC
The Financial Services Council (FSC) says superannuation funds have the power to provide a sophisticated and personalised approach to meet members' retirement needs and must prioritise this amid the government applying pressure via the Retirement Income Covenant and the proposed Best Practice Principles ...
Further Reading
Cover Story
Climbing to the top
DANIEL SHRIMSKI
MANAGING DIRECTOR
VANGUARD INVESTMENTS AUSTRALIA LTD
MANAGING DIRECTOR
VANGUARD INVESTMENTS AUSTRALIA LTD
Vanguard Australia managing director Daniel Shrimski is determined to propel the investment giant's superannuation product into the top 10 funds by assets under management by 2030. It's an audacious goal, even for a fund backed by the world's second largest asset manager. Andrew McKean writes.
Expert Feed
Elevating your emerging markets game plan
Do emerging markets still belong in a modern investment strategy? If so, how do we appropriately weight emerging markets exposure?
Inflows into fixed income ETFs gather pace
While the penetration of fixed income into the ETF structure has lagged way behind equities, we expect flows to accelerate.
Managing uncertainty in a rapidly changing economic landscape
As we distill the first quarter's volatility and confusion, there is further economic moderation ahead with sizable risks to the downside.
AI, alternative data and sustainability in focus
As AI and alternative data reshape quantitative investing, here are some key insights from discussions with institutional investors.
There is an assumption in this article that low cost advice must be poor quality. What we are seeing though is that technology is enabling lower cost advice to be better quality than high quality advice. We might not quite be there yet, but watch this space.
This article rings true for me. Over many years I have found that, by spending considerable time with a client showing them modelling etc., they begin to understand the value of advice and are willing to pay for it. The challenge is to be able to spend sufficient time in the approach without scaring the prospective client away with price. I have developed the attitude that, like many other businesses, we are "tendering" for new work and this is a built-in cost to the business so our fees attempt to "recoup" this cost. The "charge by the hour" philosophy does not work if this is your model.
The ability to deliver quality advice to members cost effectively is here and we are currently trialling with a few funds. For most members their advice needs are relatively straight forward and can easily be met with a hybrid approach combining a digital advice tool at the core with advisors supporting the platform. The advent of new technology has meant that we can now replace many low advice tasks digitally and let advisors focus on delivering high value. We have come a long way since we launched Snowball in the late 1990's.