Choosing the right Financial Adviser is a complex decision and one of the most important you will ever make. With the number of Advisers, websites and sources available, you might start to feel overwhelmed by the possible options.
Nevertheless, who you decide to partner with is critical to ensuring a successful financial future. We understand the importance of finding a good Financial Adviser and aim to guide you through the process.
Here’s what to look out for when deciding which Financial Adviser to choose.
Things to consider when choosing a Financial Adviser
Importance of Independence in Financial Planning
Independence in Financial Planning refers to having no influence from or association with financial product providers.
Choosing an independent Financial Adviser offers distinct advantages, as they aren't 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.
Book a call with an Independent Financial Adviser
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.
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 prioritises 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 financial advice fees and any conflicts of interest that might exist and impact an Advisers recommendation. Be clear on the total or “all in” cost, so you can determine value for money.
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.
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.
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.
In Summary, when finding a Financial Adviser to manage your assets, remember the following questions:
- Are they Independent
- Do they have good communication and understand your needs
- Do they offer a fee-for-service structure
- Can they specialise in areas relevant to your needs
- Do they have up-to-date and legitimate qualifications
If you are looking for advice, you can book a free consultation with a Financial Adviser using the booking form below.
The free consultation will help you understand where you are financially, what your goals are, and what can be done to achieve them.
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