Klevah™ - Advice Gap

The Financial Advice Gap

What is this all about?

Financial advice gap Too Expensive Open Secret
Never Going Back Back to Home

Financial advice gap

¥ There is a financial advice gap that most people cannot bridge. If people generally understood the share market then they would almost certainly invest much of their savings in it. Superannuation forces you to do that for a reason. The benefits can be enormous over a lifetime. The options for people to get Super-like results on their own are there, and they are simple, but the overall topic seems so complex that people can’t get involved. These days it is more difficult than ever to get professional advice, and you won’t find any here. Even professional advice is not necessarily reliable. There is a huge disparity in the quality of advisors within the industry.

¥ There are a very significant amount of people who are missing out on so much more wealth due to a lack of knowledge. Where people do invest, without knowledge of what they are doing, there are so many ways it could end in failure. Many want to invest in shares but give up and buy cryptocurrency instead. If you are looking to make small share investments, but don’t have the knowledge, you will need to find another way. You will have to learn enough and find a safe way to invest yourself.

Professional Advice Too Expensive

¥ Professional advice is too expensive because of the costs of the advisor’s time and of running the business they work at. Advisors will usually not take on clients investing under $1m. The amount of compliance work that is required for every new client is astounding. Brokerage rates charged on trades are often 2% or more and/or thousands of dollars in management fees are taken each year. Advisors will also generally not give away any information that sounds like advice to their family or friends for fear of breaking the rules, getting sued, or causing fights.

¥ Some say that school kids should be taught all about shares but nobody offers to do it due to the risks involved. Some people are lucky enough to become competent from an early age and they stand to gain massively from compounding gains at high rates over their lifetimes. Having that knowledge when you are young makes it very likely that you will become wealthy. There is, though, plenty of time yet for all 20s, 30s, and even 40s to get ahead before it becomes all about Superannuation for most over 50s.

Open Secret

¥ There is a gap from having no savings to about $1m where you cannot get advice of any kind about shares. That means that the only advice you may come across is that of a friend, or just an anecdote, or your Uber driver, or ChatGPT. The only advice that will really help is to show you that there is a massive opportunity here and you need to learn enough about it to make a start and own your own share investment project. You still face the problem that you don’t know how to make a start. You don’t know who to trust. You won’t be able to tell if you know what you are doing or not, even as you learn more. Literally nobody can help you with that. That includes this website. And yet surely there are so many people with less than $1m to invest that would benefit so much from owning shares. The gains are there to be had and the task is very doable. It will take common sense, perseverance, and some trust in yourself to ultimately be a successful starter. This site may help you get yourself to the starting line by making you aware of many of the important things to consider.

¥ What if there was good advice for everyone? So many people would invest in the share market that the prices of all the shares would rise too much and the rates of return available would fall closer to interest rates – probably. This is the opportunity of shares. Because so few invest, the prices of the shares are lower than they would otherwise be - giving better returns for those who do invest. The fact that it seems hard to invest in shares is a big reason why it is so profitable. It is not exclusive, as some imagine it to be, but you should see it as an open secret. There are some people all around you who are quietly taking the chance to build wealth through shares. They are putting more money away now, but they will be able to enjoy the use of much more of it down the track. They do not feel the need to show their success and share the pressure it takes off them financially.

Never Going Back

¥ What could one person do if good advice was freely available? A young person who invests consistently from their first job could have a way bigger deposit for a home sooner. If they choose to rent when they move out, then they can leave their capital in shares and be shielded from costly house price rises. People with enough to invest a little, but not enough to afford an investment property, can become investors and make great gains. Every chance in life to save away a little extra for a few years could become a building block towards true financial independence.

¥ Once people have become investors, they become much more likely to stick with it and progress to bigger and better things. They either get burned early and never go back to the share market or have some success and never stop investing. Most people never make a serious investment outside of their home and Super. They never really even consider it in the first place. This website wants you to think hard about that opportunity. Whether those who choose not to invest might have kept it small or gone big, it is a real lost opportunity. The best advice is to start early, make a small start, and keep learning as you go. See an example on this site of how people have made a start investing sensibly in share funds. Click here for Strategy Page

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