Advisers told to get more involved

Financial advisers need to “get off their chuffs” and actively take part in Money Week or the low turnout for this year’s pro bono initiative could be repeated next year, Liz Koh says.

Thursday, September 13th 2012, 6:34AM 4 Comments

by Niko Kloeten

The Moneymax adviser was one of about 100 advisers who signed up to provide an hour of free advice as part of the Institute of Financial Advisers-run programme last week; she also ran four seminars during the week.

Koh said the low take-up of the free offer (only 30 enquiries were fielded throughout the entire week) was partly due to a lack of promotion by advisers themselves.

“Advisers need to get off their chuffs and promote the fact there’s free advice during the week,” she said.

“If people were looking for it as a way to bring people into their business it’s up to advisers to promote it themselves not for others to do it for them.”

Koh only had one query during the week, which she said was property-related with a family wanting to pitch in to buy a home for their retired parents, who are still renting.

“If you’re in a situation where you’ve got to pay rent or a mortgage in retirement, you’re knackered,” she said.

Jordi Garcia of New Zealand Financial Planning was another who took part in the initiative, helping a “distraught” woman in her late 50s/early 60s who was looking at using equity from her house to pull some money out and pay for her daily costs, including caring for her sick daughter.

Garcia said if it hadn’t been for the offer of free advice she wouldn’t have approached a financial adviser at all.

“When I looked at her situation it was partly of her own doing; it turned out in her case her mother had left her a sizeable inheritance 15 years ago and she decided she wasn’t going to work again and she used it all up.

“If she had got financial advice 15 years ago she wouldn’t have been in the situation she was in. People don’t really look long-term and think 10 years down the track.”

Niko Kloeten can be contacted at niko@goodreturns.co.nz

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Comments from our readers

On 13 September 2012 at 3:27 pm Steve said:

Perhaps people don't need advice. With KiwiSaver their retirement is taken care of - isn't it? Advisers getting off their chuffs seems a little harsh - consumers don't actually care as much as you think.

On 13 September 2012 at 5:28 pm Allistar Walker said:

Would have been good if we had known about it (but why tell an RFA)and agree that could consumers really care or would the latest i-phone be more interesting.

On 13 September 2012 at 5:51 pm traveller said:

The occasional bad court case fouls the nest of the whole financial planning/advisory business and tars all advisers with the same brush. It doesn't help either that there is still a large body of advisers wedded to a financial institution where the range of product offerings is restricted. Do all you like with controlling legislation but in the end it comes down to honesty and ethical conduct.

On 14 September 2012 at 1:17 pm Paul Carrick said:

The current Money Week result appears little different to events run in the past and as an adviser in conjunction with others - we have certainly "got off our Chuffs" in the past with disappointing results. While money week can be seen a positive publicity push, this article ignores what advisers are doing on a daily basis, providing advise and mentoring to those people who want the advise and want the relationship.
These advisers are in the main, contributing below the radar and making a difference one person at a time, I also suspect that there are many advisers giving "class advice and Pro bono services" all year around.
For those who have contributed to the Money week in some way - well done (FYI I did not receive one call).
Another point to consider if "the advice is free, then is it worthwhile and does it have value?" and perhaps the whole money week concept needs revisiting.
Have a fun day

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