Using graphs with meaningless timeframe’s

This is another way that some SOAs use graphs inappropriately. They extend the time period used in the graph well beyond the time required for demonstration. Here is an example:


In this case, the years 11 – 20 are useless. But many graphs include them. Once again, this is usually the fault of the SOA software, which has a default setting that the adviser does not know how to change. Accordingly, each and every SOA includes the default graphs regardless of whether they make any sense for the specific circumstances of the client.

This has at least two unfortunate circumstances. Firstly, any knowledgeable reader of the SOA (e.g. ASIC) is alerted to the fact that you used software to write the advice. Put simply, this makes the client feel less special.

Secondly, the informed reader of the SOA can clearly see that your computer skills are not up to scratch. People tend to infer competence in one area from competence in another area (which explains why people pay Shane Warne to speak in public). By giving an impression that you are not a competent user of a computer, you can create doubts about your competence as an adviser.

So, please, use graphs sparingly and use them with precision. 

The Dover Group