The industry super network (ISN), in its continued assault on financial planners, recently released a self commissioned report from Rice-Warner that states financial planners will be better off under their proposed system of advice. The report also indicates that the nation may be $117 billion better off over the next 15 years under this system. Further, they have released an internal research report – Supernomics – that suggests that competition should be outlawed as the continued use of higher fee super funds implies competition has failed. The reports, however, do not stand up to much scrutiny on a number of grounds. The ISN suffers from a severe case of financial myopia. They seem to believe that superannuation is the source of the only significant financial decision that individuals need to make and further, that it should be seen in isolation from other financial decisions. Having worked as the executive manager of advice in a quasi-industry (not for profit) fund, my experien...
This blog is a series of short essays and thoughts relating to Financial Planning for you to consider and comment on.