We Fix $5 Haircuts
A local barber of many years held the monopoly on a small town. Opening his store one day, he noticed a new barber shop across the road boasting the sign, ‘$15 Haircuts.’
Concerned, the longstanding barber decided to hang a sign stating ‘$10 Haircuts’, only for the new barber to respond with ‘$8 Haircuts – Cheapest in Town!’
The price war went on and on until it came to a standstill, with the competing barbers almost giving their services away with ‘$5 Haircuts’.
One morning the established barber decided to no longer play the price game and instead focused on quality, experience, and customer service. His final sign read “We Fix $5 Haircuts“.
This is exactly what is occurring in the Financial Advice industry where providers are selling products and not advice, and not acting in a clients best interest merely to make a sale.
We saw the dangers of this approach during the Global Financial Crisis and we feel we are seeing this yet again with in-appropriate sales of Self-Managed Super funds, individuals borrowing too much to buy into an overpriced property market, and investors following the latest ‘hot’ investment asset class without considering risk or the long term.
Like we saw during the GFC, these actions can have significant ramifications to an individuals financial future particularly when super funds are audited, interest rates increase, and markets crash.
To ensure you’re protected from these events and that your financial situation is set-up the right way contact us using the form below so we can give you a 2nd opinion and fix your $5 haircut!