POWERED BY MOMENTUM MEDIA
Retirees ‘desperately’ need advice
As interest rates seem destined to remain at historic lows, it is an “exciting” time to be a financial adviser as retirees “desperately” need advice, according to a panel.
Speaking on the Money Management Retirement Income webinar, Sunsuper chief economist, Brian Parker, said no-one could conjure yields out of thin air as interest rates were so low.
“We can’t magically turn 1.5% of risk-free rates into a 5% risk-free rate. Anyone who claims they can is a fool, a charlatan, or both,” Parker said.
“This is an environment where retirees are going to need advice. The next few years are key for advisers to step up and provide the kind of advice retirees desperately need.
“The old rules still apply to portfolios: diversification and understanding client’s risk appetite has been and will remain crucial.”
Agreeing, SMSF Association chief executive, John Maroney, said there were examples over the last 12 to 18 months of “outlandish promises” being made about high returns.
“These strategies were widely advertised but weren’t suitable for retirees to be choosing and everyone does need to be careful and that’s an area where a good trusted financial adviser can help a lot,” he said.
“Portfolio construction as well as trying to avoid some of those riskier products being offered at times of low interest rates is very important.”
Recommended for you
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
Cbus Super has unveiled Advice Essentials Plus, a new service offering affordable financial advice to both members and their partners.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
