Plan for better future
Published in the Geelong Advertiser, March 2013 by Dale Gillham
The past few weeks have seen many announcements regarding changes in the financial services industry, including conflicted remuneration and whether financial planners should have a degree.
These changes have essentially come as a result of the GFC and Storm Financial collapse.
However, will they encourage more people to use a financial planner?
Current statistics suggest about 20 per cent of people will use the services of a financial planner.
I find it interesting that we are all happy to pay a solicitor or accountant on an hourly basis to do something for us; however, when it comes to something that is far more important, like our financial future, we tend to shy away from using a professional.
Everyone wants financial security now and in retirement, but so few are willing to commit to the journey because of the unknown or lack of guarantee of success.
What we know is that certain failure is achieved by those who do not start the journey or only travel part of the way.
My hope with the new changes to the financial services industry is that people will have as much, if not more, confidence in their adviser as they do their accountant.
So what do we expect in the market?
The Australian share market continued to defy history again this week as it trekked higher to 5174.4 points on Tuesday, which I believe may be the peak in the market that I have been expecting.
Interestingly, I note that the market traded higher early in the week to create 17 straight weekly rises for the All Ordinaries Index.
However, it began to give up recent gains by the end of the week.
The action of opening high and closing lower for the week reminds me of a saying that is common in the market place: the uneducated open the market and the educated close it.
This is about the transfer of wealth from those with no knowledge to those in the know, and I believe we will soon see this occur once again as the market pulls back over the coming weeks to find support between 4750 and 4850 points.
That said, with this occurring I see opportunities setting up for those in the know in the not too distant future.
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