financial advice Tag

There’s a lot of discussion happening at the moment about insurance commissions, and their place in the advice industry. Setting aside the reactions that advisers will go out of business, and we'll worsen the underinsurance problem in Australia, when we get right down to the heart of the matter, the question evolves from ...
  • will clients pay for risk advice?, to
  • should clients pay for risk advice, to
  • why would clients pay for risk advice?
If you’ve ever questioned the value proposition when providing advice on insurance, read on…

I believe one of the key roles of an adviser is to change clients behaviour for the better. Most people do not make the best financial decisions. Whether it be failing to save enough, chasing returns, keeping Foxtel but cancelling insurance or simply listening to our hearts more than our heads, all but the best of us are guilty of making less-than-wise choices.

A year ago ago, I made the jump across to Apple, with my first MacBook Pro. Since then, I’ve been asked a number of times whether it’s realistic for advisers to do the same in an industry that intrinsically favours Windows. Many businesses asked me whether, given the potential for compatibility issues, it was really possible for an advice business to make the switch from PC to Apple.

We are often asked by advisers to take a look at their pricing model and let them know if they “have it right”. This begs the question, “is there such a thing as the right pricing model?” The answer is “yes”, although what is the “right” model will vary for every firm. So here is a list of questions to ask yourself when considering whether or not you have got your pricing right: