Hi everybody long time lurker. I’ve been investing for seven years and have built quite a large and successful portfolio on a very low income max was $45k. Its a great story and I’ve helped so many people over the last few years on a social level I’m at the stage now were I’m close to being able to retire but I would love to start a business mentoring program to keep me busy. Nothing to do with being a buyers agents or selling people products just helping young couples get their heads around the strategies and budgeting issues. Essentially the things people face when they first start what to look for, how to negotiate, different structures to buy in etc. I’m just confused about how to set it up. I don’t want to be giving people financial advice(obviosuly there is high risk involved/I would hate to see someone lose money on something I suggested) and I don’t want to get a financial advisers licence(Courses are not for me). Is it still possible to give people advice on strategies without needing a licence? Would I need personal indemnity insurance for myself?
Hi Dboyle,
I am sure there would be many on here who could learn things from you – for one thing, how to succeed on a wage of $45k maximum.Like many who come here to share their experiences, why not jump in to answer questions of less experienced folk when their question is one you have particular knowledge of. Your answers can provide help, and you can derive the pleasure of knowing that you were able to lift someone else up to a higher level today.
Who knows just where such a hobby might lead,
Benny
Hi Dboyle
Well done on achieving what you have.
Hate to say any form of advice will require some form of licensing whether it it be strategy, credit or otherwise.
This day and age their is a license for everything and the cost of compliance mounts daily.
You can probably answer the odd question on the forum with a general statement but need to be careful.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi guys thanks for the replies more than happy to help people. Richard do you know what sort of licensing you would need for strategy advice would it be a financial services licence?
Hi Dboyle
Would all depend on how you define strategy advice but from what you have stated i would think it would be a Financial Planning License & Credit License.
Then you have compliance issues as you are required to produce a Statement of Advice on each matter etc.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Actually there are no licencing issues with this sort of thing if you can keep a narrow focus. Property advice is unregulated. You will need a licence to sell or rent or act as a buyers agent, but not do do similar to what Steve McKnight does. Structure advice is legal advice so you could not advise on what names on titles or the tax implications. You couldn’t advise on loans without a credit licence. An AFSL or financial planning licence is only needed if giving advice on financial products – shares or super or insurance basically.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry well the original plan was just to really teach people about savings and the mindset of saving over wasting your money by using spreadsheets and app a friend is developing so people can track their progress and see how much they are saving etc. Part of the teachings would obviously explain how different savings accounts work so I guess to get around of maybe finding the best account I could just give the pros and cons for each type of account. Its the property investing advice I’m kind of worried about, I’d hate to overstep the boundaries but I guess if its just simple advice on what to look for, Negotiating tips, understanding the market cycles etc I should be all good.
Savings accounts are financial products I think. You may need an AFSL.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yep they certainly are.
Be surprised how many brokers don’t realise they are unable to give advise on offset accounts without breaking the law.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Richard, wasn’t there an exemption added for offset accounts about 5 years ago?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Okay so savings account help is out :(
Terry no I that is not the case.
Many lenders (AMP are a good example) get you to confirm that you either have not given any advice in relation to an offset product or you are licensed to provide the advice.
Rather ridiculous in my opinion.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
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