Nice guy but once again no cold hard facts just generic lingo.

Ta Paul.

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Fair comment Paul. But in this case, Jim has a $900,000 compensation payment at age 58. What I know about Jim, is the 11 lines above. What I do see with absolute clarity is he needs detailed, personal advice, that is why I steer him to his super fund member advice service or to a professional advisor. This money has to last him a lifetime, it is critical that all aspects of his situation, spending needs, attitude to risk, dependents and a whole host of detailed, personal information are taken into account.

Then it gets complicated. Jim really does need cold hard facts. But as I do not have the detailed information an advisor would need about Jim, I simply can't supply these facts, which products to invest in and so on. Our regulator ASIC defines this in detail, it is all about 'specific advice", to provide this a licensed advisor must complete the detailed "duty of care" to their client. This is quite a process. An advisor would typically charge around $3000 to cover their professional time costs to move to a Statement of Advice for the client.

Appreciate this all sounds like mumbo jumbo, but our legislation and intent of our regulator makes sense. People should not receive specific advice about investing their money, unless their complete situation is understood. So I can only give Jim general information steering him down the right path.

You'll notice this quite a bit in my answers. I can only give information and broad guidance to questions such as Jim's. Others, which do not involve securities I can provide a lot more, questions such as estate planning, property, mortgages and a whole raft of other areas involving money, here I can give solid facts.

After 40 years of doing this, I still find it frustrating not to be able to give stronger information to those in positions such as Jim, but frankly, I'd need to put my adviser hat back on and put in several days of professional time with them, to give them the critically important, detailed plan they need.

- Paul Clitheroe

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Mic drop...

Great answer Paul

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