Sure. it’s a dopey name but, hey, that means there’s plenty of room for highly paid marketing types to get paid oodles to workshop, focus group test etc.
But seriously, the idea is simple after the state of your health, and your access to health care (Medicare, get it?) another big thing that determines your life outcomes is your ability to manage your finances, and particularly risk, over many decades. This is no easy matter. It’s getting more complex all the time especially as people live longer and spend longer in retirement.
Every market downturn, or bust, we see thousands and thousands lose much more than they should have because they badly misunderstood the nature of risk and didn’t manage it properly. As we have seen recently many of these people have to apply for the pension because they can no longer support themselves.
The rich have access to good financial advice, most of the rest of us don’t. We used to rely on our friendly local (and prudent) bank managers but they, just like much of the rest of the finance industry, are better described as sales people then disinterested advisers.
A medicare equivalent on financial advice could see medical centre type outfits in large suburban centres and regional towns where people could get independent consultations before making major decisions like taking out a mortgage of investing in superannuation.
The advisers in these centres would be properly qualified and registered with ASIC or a similar body and they would not be able to get any payments of any kind in relation to the investments they recommend. Perhaps the not-for-profit sector could also play a role in running some centres. The centres would be government-subsidised and there would also be a means-tested co-payment as well.
The macro benefits could be a muting of the bubble affect we seem to see about once every decade or so and a stronger financial system.
Well, it’s an idea with some merits I think.
2 Comments
Ugh – nanny state begone!
When you have Mr Rudd pump priming the economy like there’s no tomorrow, what makes you think his “moneycare” bureaucrats would know how to give proper financial advice?
Err..Actually Trevor, I suspect there’s a distinct lack of truly qualified people to staff your proposed financial advice centers.
Heck, even the rich, who had (supposedly) excellent advice from Bernie Madoff, seem to have taken a bath.
Mind you, I *do* like the idea of a “safe haven”, where the clientele know they’re not going to be ripped off for commissions and trailing fees.
Perhaps, as the financial industry implodes, there might even be enough out of work accountants etc to staff the place. Who knows, with a bit of further training, they might even offer some sensible advice for a change.