Just doing the Big Challenge you’d know that recent ASIC research found that – of retirement advice from financial advisers 33% was poor, 58% was adequate and 3% was good.
This is despite extensive regulation, the many tips and tools available for you to find a good financial adviser. Let alone the wealth of sites that compare, rate and award people and products in the financial planning and investment industries (see Days 9 and 10).
So, if it’s so hard to get good advice from a licenced planner, how can you find and rate investing information and advice from unregulated or unlicensed, so called experts or gurus?
You can compare quantitative data and ‘success’ fairly easily when you look at the financial performance of a company, share, fund or product. But how do you compare the success of other, often more qualitative, wealth creation vehicles, business or property investing strategies?
Many of the tips and tools to help you choose financial advisers we saw in Day 9 and 10, will also help you rate and compare these other providers, such as their:
- experience – generally and with the specific product or strategy. How many years, typical clients and testimonials. Can you speak to their clients?
- memberships of industry associations and professional bodies
- ongoing professional development
- commitment to ongoing service – what will you get from your investment
- fees – up front, ongoing, service, administration
- independence: relationships with other providers – any commissions, benefits or bonuses they receive; suitability of their product or service to my needs
In ABOUT GURUS|GURU COPS and with our Traffic Light Rating System, we suggest you research as much as possible about:
- Their STRATEGIES – and any pros and cons (are they ones anyone could use, or do they involve complex or specific skills or resources. Are they conservative or higher risk?)
- Any CONTRARIANS – Analysts and Commentators, peers, or others who may have ‘issues’ with the Guru, their strategies, or practices.
- Any GURU COPS – individuals or organisations (government and non -government) there to protect us from others or ourselves
- Their ASSOCIATES – business associates or other connections
- Any experiences – of clients and others – good and not so good
What we do then is rate gurus – red, yellow, or green:
Red – Stop and think: there appears to be negative information and feedback. Some ‘Guru Cops’ or contrarians may be critical of them and/or their methods or strategies may not suit most investors, be risky or less conservative than others.
Yellow – Get ready to go: There are no, or few contrarians, but still not enough information or recognition to confidently accelerate. Their strategies may be complex or out of the ordinary, and you may need special skills or resources to succeed with them.
Green – Good to Go: From all the information and experiences of ours and others, following them and their systems should lead to successful investing for most investors.
Our rating system is by no means complete or foolproof. But we hope it and the other resources we give you throughout BiG and the Challenge, help you save time and money and to quickly compare advice and information.
Tomorrow we help you choose the investment advisers that best suit you.
Love to get your feedback – email or leave a comment.
I’d also be delighted if you find BiG and my work helpful, and share it with friends, family and others who want to build on their investments. (Just click on the “Subscribe” green button to the right and be part of the Challenge and receive our updates – free!)
All the very best with your investing!
the Bucket List Investing Chick
Where to next:
Day 19 – Who are the best investment gurus? Part 4| Choose a Guru
Week 4 – Time to invest – just do it!
Where we’ve been – 30 Day Challenge Blog overview:
Day 5 – Who Can You Turn to for Investing Help? People and ‘Players’ in the Investment Industry (Day 7-8 W/E)
Day 12 – Part 4 Less Regulated Advisers – Analysts, Commentators and Gurus (Day 13-14 W/E)