Choosing a Financial Planner

Choosing a financial planner doesn't have to be stressful - just follow the points listed below

Why talk to a financial planner?

By talking to an experienced financial planner, you will be getting professional advice and guidance that can help you establish a financial strategy for your future. Without it, you may be leaving your financial future exposed to chance.

Financial Planners can help you with such things as life insurance, income protection insurance, superannuation, investment advice, salary packaging and planning for your retirement.

How do I choose a financial planner?

The selection of a financial planner is a very important financial decision. The planner you choose should suit your particular requirements, and the best way to find out if they are a match for you is to ask a series of targeted questions.

1. Qualified & experienced?

Ask which qualifications they hold and what level of experience they have as a financial planner. Ensure the planner is accredited to provide advice in the particular area at the level you need. There are a range of qualifications and accreditations within the financial industry (e.g. CPA Financial Planning Specialist). These range across the insurance, investment and home lending markets.

2. Member of Professional Association?

Ensure the financial planner is a member of their national body, such as the Association of Financial Advisers or the Financial Planning Association. These national associations have the ability to investigate complaints and discipline their members who must abide by the rules and regulations as required by a professional.

3. Appropriate licence to practice?

Your financial planner should either have there own (AFSL) Australian Financial Services Licence, or they should be an authorised representative of one or more financial institutions with an AFSL.

4. Stable practice history?

Ensure that the financial planner you choose offers an ongoing service who is capable of reviewing your financial plan and prepared to accommodate changes.

5. Communication skills?

You must fully understand the proposed financial strategy which is being proposed. Make sure you get a copy in writing before you commit to the financial plan and have your planner explain the plan and the implications of what your are about to implement.

6. Payment terms & structure?

There are 3 different ways in which financial planners may charge for their services:

1 - Where the planner charges you for the work done (fee for service) normally on an hourly rate; and/or
2 - Through commissions (or brokerage) they receive from the financial institution; and/or
3 - By charging a scale of fees based on the total funds you invest.

Being happy with your financial planner is an important step to implementing a sound financial plan. It is best to get financial advice from a financial planner who can accommodate your individual needs ensuring you receive the best outcome for your personal situation.

Disclaimer:

No investment advice provided to you.
This web site is not designed for the purpose of providing personal financial or investment advice. Information provided does not take into account your particular investment objectives, financial situation or investment needs.

You should assess whether the information on this web site is appropriate to your particular investment objectives, financial situation and investment needs. You should do this before making an investment decision on the basis of the information on this web site. You can either make this assessment yourself or seek the assistance of any adviser.