How to choose a financial planner
How to choose a financial planner
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A financial planner is someone who works closely with you and gets to know you well.
Based on their understanding of who you are and what you want to achieve, they can set realistic financial goals and make plans to help you achieve them. Whether your goals are short or long-term, the financial plan they put together for you will be unique to your situation.
A financial planner can also assist you staying focused on your goals. You can think of them as a fitness coach for your finances or even a sounding-board for bigger financial decisions you want to make.
With the help of the right financial planner, you may feel more confident and optimistic about your financial future.
Financial planners should be fully licensed and qualified as financial planning is a specialist profession. They should have extensive industry knowledge and access to research.
Before deciding on a financial planner, you should:
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Check their AFS licence
Make sure your financial planner has an Australian Financial Services (AFS) licence or is an authorised representative of an AFS licencee. If in doubt, you can double check their qualifications here.
Think about what you want from your financial planner
Financial planners can help with a lot of different things. You need to decide what. Do you want help investing your money for greater returns? Choosing premixed investment options? Getting ready to stop working? Or something else?
Read the financial planner’s Financial Services Guide
The Financial Services Guide will provide information of the financial planner’s fees and services as well as what your rights are if things don’t go to plan.
Take the time to understand the cost of receiving advice and how it will be paid
You should have a chat with a few different planners to learn to obtain an estimate of their fees and how they will charge for the services you are seeking. Some charge more than others and may not fit your budget range.
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A financial planner should take the time to understand who you are and what you want to achieve.
They should be
• Easy to talk to - Good at engaging your attention
• Easy to understand - Able to articulate the benefits of what they do with clarity
• A good listener - Someone you can trust
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What can a financial planner help you with?
✓ Taking control of your budget✓ Getting out of debt sooner then later
✓ Making the most of an inheritance
✓ Growing and managing your wealth
✓ Saving for your first home
✓ Saving for holidays
✓ Investing your money in a more tax-effective way
✓ Protecting your income with the right kinds of insurance
✓ Understanding the long-term benefits (or consequences) of your financial choices
✓ Making the most out of your current income and/or growing it
✓ Planning for a family and loss of income during maternity leave
✓ Planning finances after a redundancy or during a job change
✓ Enhancing superannuation opportunities
✓ Establishing an Income Stream
✓ Determining if you have enough super for the retirement lifestyle you want
✓ Taking advantage of any available options to boost super such as Transition to Retirement (TTR)
✓ Exploring the Age Pension and other Centrelink benefits
✓ Making sure you always have enough money to live comfortably in retirement
