Question: When borrowing for my DIY fund, I have been asked by the bank to provide a letter of advice from a planner (RG146 qualified). From my research, it seems as though this is a little redundant as the loan is a limited recourse loan as well as the advice would be execution only advice rather than part of a full financial plan. Is this a new rule or are the banks just putting extra hurdles in place with this?
Answer (By Paul Rickard): It is not a new rule – however the more enlightened banks don’t require it. It is a very competitive market – I would try another bank.
Question 2: Can you please recommend an Australian bank or company, which will facilitate me trading on the Dow and S&P500, as I currently do through NABtrade. They tell me they do not offer the facility?
Answer 2 (By Paul Rickard): CommSec or ETrade both offer these services.
We also wrote about buying international shares [1] earlier this year. But check with the brokers, as costs may have changed since then.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
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