Choosing the right financial adviser is a complex decision and one of the most important you will ever make. With the number of websites, sources and advisers available, you might start to feel overwhelmed by the possible options. 

Nevertheless, the type of adviser you decide to partner with is critical to ensuring a successful financial future. 

We understand the importance of this choice and aim to guide you through the process. Here’s what to look out for when selecting an adviser, including the importance of choosing an independent financial planner.

Choosing a financial adviser

Importance of Independence in Financial Planning

Choosing an independent financial planner offers distinct advantages. Independent advisers are not tied to specific financial products or institutions, allowing them to provide unbiased recommendations tailored solely to your needs and objectives. This independence ensures transparency, eliminates conflicts of interest and builds trust.

Tip: Seek out independent financial planners who meet the Corporations Law definition of Independent. Anything else is a compromise and a potential threat to receiving advice that is in your best interests.

Qualifications and Credentials

You should always verify an adviser’s qualifications and credentials. Look at their formal study in both undergraduate & post graduate fields. Accreditations, such as Certified Financial Planner (CFP) or memberships in reputable professional bodies like the Financial Advice Association Australia (FAAA) or Self-Managed Superannuation Association (SMSF) are good signs and indicate a commitment to high ethical standards and ongoing professional development. An adviser's license and qualifications can be verified on the government’s Financial Adviser Register: Financial advisers register - Moneysmart.gov.au

Tip: Inquire about the adviser's experience and expertise in areas critical to your financial objectives, be it wealth accumulation, superannuation, retirement planning and estate planning.

Specialisation and Expertise

Choose an adviser who specialises in areas relevant to your needs, whether it's retirement planning, wealth management, business succession, or superannuation. Specialised knowledge ensures tailored advice that aligns with your specific financial objectives and circumstances. Importantly, you may wish to find an adviser that provides holistic advice (including a focus on financial wellbeing) to ensure all facets of your financial life are being catered for.

Tip: Ask about their track record (how long have they worked in this area) and success stories of clients with similar financial situations or goals as yours. Do they have testimonials, either written or verbal.

Fee Structure and Transparency

Understanding the adviser’s fee structure is crucial for transparency and managing expectations. A subset of the financial planning profession (including Strategy First) operates on a fee-for-service basis, ensuring unbiased advice that prioritizes your best interests. This contrasts with advisers who may earn commissions from recommending specific financial products or charge a percentage of assets traded or managed.

Tip: Request a clear breakdown of fees and any conflicts of interest that might exist and impact their recommendations. Be clear on the total or “all in” cost, so you can determine value for money.

Personalised Approach, Effective Communication & Trust

Effective communication is essential in the adviser-client relationship. Look for an adviser who takes the time to understand your personal circumstances, goals & objectives, experience and tolerance to risk. They should communicate clearly, respond promptly to your queries, and provide regular updates on your progress towards both your personal & financial goals.

Above all else, you should feel you can trust your adviser, on both a personal and professional level. A successful advice relationship will last many years, if not decades, so it’s important you feel comfortable with your adviser.

Tip: Schedule an initial consultation to gauge their communication style and how well they listen to your concerns. Come prepared with a list of questions relevant to you and what you want to achieve, so that you can compare the responses. Your goal is transparency, understanding and a pathway to advice that is specific to you and your needs.

Conclusion

Selecting the right adviser is a pivotal step in securing your financial future and achieving financial wellbeing. At Strategy First Financial Planning, we believe in personalised service, qualified & experienced staff, expertise across a broad range of areas (wealth accumulation, superannuation, Aged Care, retirement planning & estate planning) and transparency in financial advice.

No matter your financial planning needs or background (business owner, busy professional or wealthy retiree), our team of independent financial planners is dedicated to guiding you with integrity and professionalism. Contact Strategy First Financial Planning today to schedule a meeting and experience the benefits of independent, client-focused financial advice.

Choose wisely. Plan effectively. Secure your future with Strategy First Financial Planning.