Advisor says, ‘DON’T PANIC’

Hi Scott,

My wife and I are 60 and 62. About a year ago (many years too late!) we realised we needed some financial guidance and approached a financial adviser who our accountant recommended. He told us he believed he could make us $60,000 pa from our $380,000 super, and set us up in an SMSF (Self Managed Super Fund). So far we have lost $110,000. He says “don't panic”. Do you have any advice?

Brian

Hi Brian,

I’d panic.I think that’s a perfectly acceptable emotion to be experiencing right now. After all, your financial advisor sounds like a crook. Seriously. I don’t know of any professional who would suggest to a client that they could generate a $60,000 a year return from a $380,000 investment. That’s a 16 per cent return. If that’s really what he told you, he’s not only an incredibly bad money manager, he’s a bloody liar. Truth is you went looking for a princess and you ended up kissing a toad. If it were me I’d stomp on him.

Scott