Choosing A Financial Planner
If you want to know how to choose a financial planner you can trust, then you’re in the right place.
With over 15,000 financial planners in Australia, choosing the right financial planner can appear to be a daunting task.
That’s why, in this article we’ll discuss the 3 steps for choosing a financial planner.
Step 1 – Get Clear On Your Advice Needs
Different financial planners provide different types of advice. Some specialise in investments, while other specialise in insurance, or retirement planning.
Choosing a financial planner who’s qualified for the type of advice you require is essential.
The most common areas of specialisation are:
- Insurance Advice
- Wealth accumulation, debt reduction and budgeting
- Retirement Advice & Pre-Retirement Planning
- Self-Managed Superannuation Funds
While a financial planner may be competent in one or more of these types of advice, they may not have experience in them all. That’s because each areas of advice has unique rules, legislation and strategies, so it’s important to choose a financial planner who specialises in the type of advice you require.
Step 2 – Five Methods For Choosing A Financial Planner
Now that you understand the type of advice you require you can start searching for a financial planner to match your advice needs. Here are five different ways to choose a financial planner.
- Ask Your Existing Service Providers
- Ask A Friend
- Contact Professional Associations
- Specific Google Search
- Use The FREE Find A Financial Planner Matching Service
Let’s look at each of these options in more detail.
1. Ask Existing Service Providers
Your existing accountant, finance broker or general insurance consultant may be able to help you choose a financial planner. Be sure to explain the type of advice you require so they can refer you to a specialist financial planner.
One pitfall with this approach is that many finance companies also own financial products and may refer you to one of their internal planners who may only recommend their internal products. Also be cautious if the referrer will receive a referral fee for connecting you with a financial planner. If this is the case, then the referral may be in their best interest and not yours.
2. Ask A Friend
Do you have friends or family members in a similar situation who have received financial advice? Ask them how they found the experience and if they were happy with the advice they received.
Remember, not all financial advisers specialise in all types of advice, so if you are trying to find a financial planner who provides insurance advice it may not be wise to ask a retiree for a referral to their retirement adviser, and vice versa.
3. Contact Professional Organisations
There are several professional associations who can assist you to find a financial planner from their member database.
- Association of Independent Financial Advisers (AIFA)
- Australian Financial Advisers Association (AFA)
- Financial Planning Client Advocate (FPCA)
- Financial Planning Association (FPA)
Obviously, professional organisation will only refer you to a financial planner who is part of their member base.
4. Specific Google Search
You could conduct a specific internet search. Make sure your search includes the advice type and a location, for example, “Retirement Advice Melbourne.”
The biggest risk with this method is that there is no third party recommendation, as with all the other methods mentioned in this article.
5. Use Our Online Matching Service
The Find A Financial Planner website is a free service that matches you with a financial planner based on your location and the type of advice you require. This means you will be matched with a specialist financial planner.
Another benefit of this matching service is that the financial planners need to pass an accreditation by the Financial Planning Client Advocate (FPCA) before they can be listed, which means you get an extra layer of security.
Click here to start your FREE search now.
Step 3 – Qualify Your Financial Planner
If you search for a financial planner on www.FindAFinancialPlanner.com.au then the FPCA has already completed background checks and an accreditation process to ensure the adviser meet our high standards.
If you choose to go it alone, the following are some tips to help you qualify the financial planner you choose.
- Check They’re Licensed – In Australia, financial planners must hold, or be employed by a business that holds an Australian Financial Services (AFS) licence.
- Ask For A Financial Services Guide (FSG) – A Financial Service Guide (FSG) is an important document containing information such as the services offered, how they charge and how they handle complaints. Check the planner’s website, or call their office to obtain a copy of their FSG. Reading the FSG will give you much of the information required to assess a financial planner.
- What Are The Fees & How Are They Charged? – Before you proceed with any advice, make sure you understand exactly what the fees are and how they will be charged?
- Understand Who’s Behind The Advice – Many financial planning firms are either owned by or licensed by financial institutions like banks, fund managers and life insurance companies. When this is the case their advisers may be limited to recommending that companies products. Understanding who’s behind the advice will help you identify potential conflicts of interest.