Hedware, so glad you brought up the Real Estate Agent example and Doctor. Lets discuss.Estate Agent. I will use a simple example with only a 2% charge on sale for the Real Estate Agent. When the Agent is looking to sell a property, there are two main sale types. One, simple sale for a principle residence. Secondly, the sale where the buyer is looking to rent the place out. Now, remember the Agent is being paid by the seller and the Agent not only wants the sale, they may also want to be the letting agent (remember, Real Estate Agency's valuation is largely about their rent roll). So, is who's interest is the Agent acting?Let's put some numbers to it for you as Brad Hodge asked AMP (Jack) why Financial Planner don't charge like Agents (perhaps we should).Sale at $825,000 gives commission of $17,500.Lease fees (Lease prep, Letting Fee and about 0.6% management fee on income plus Admin Fee) there are more but the example I am using conservative. Total fees on rent of $23,920 pa is $2,066.52 pa or 8.64% or another way, 0.25% pa on initial purchase price. I would love that sort of money and no responsibility, big numbers and no BID.
Doctors - well. that is an interesting example since we have Medicare in this country and I am assuming you will be using the same reasoning for them - if their service is so valuable then they should have no problem charging a fee. Hell, that didn't even work for Tony Abbott with $7 per visit.
So, if your example is so great, do it to everyone - and stop pretending Industry Super charge Inter Fund Advice Fees are not a simple form of commissions - they are.
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