Choosing a financial planner is a big decision, and it is important that you give it the correct care and consideration. To help you perform your due diligence and find the right financial planner for you, we have four things we think you should consider when choosing a planner. By considering these factors and following our steps carefully, you can ensure that you choose the right financial planner to help you achieve your goals.
1.Consider what you want from a financial planner
First, you should consider what you want from a financial planner. We recommend doing this before your search begins, considering the goals you want to achieve. You will also want to consider your stage of life and how much money you currently have when considering these goals to ensure they are attainable.
Consider how you want your financial planner to help you achieve these goals. Do you want them to help grow investments or focus more on managing debt? Perhaps budgeting is more important to you now, but you also want to look at investments and growth in the future? Financial planners all have different areas of interest and expertise, so by carefully considering what you want from them, you can ensure you make the right choice and that the planner you choose can help you.
Many financial planners can help you with budgeting, estate planning, superannuation, retirement planning, insurance, and taxation, but if you have specific goals or needs in mind, like exploring a personal loan for a 620 credit score to consolidate debt or fund a major purchase, or developing a strategy to retire as early as 55, make a financial planner aware of these from the start so they can determine if they can help you.
2.Consider what type of advice you want
Next, you need to consider what type of advice you want from your financial planner. Financial planners typically offer two different types of advice: personal and general financial advice. Both types of advice and support they offer are outlined below:
General financial advice
General financial advice involves offering you generalised advice that does not consider your personal situation or any goals you have. It does not consider how the advice might affect you either.
Personal financial advice
Personal financial advice is the more popular option and is tailored to your specific goals and situations. Personal advice is considered in your best interest and typically includes the following:
- Simple, single issue advice – helping you with contributing to your super, handling shares, or another single financial issue
- Comprehensive financial advice – including developing a financial plan to reach your financial goals, like savings, investments, retirement planning, and insurance
- Ongoing advice – including regularly monitoring and reviewing your financial plans
3.Narrow your options
After considering what you need and the advice you want, it’s time to narrow your choices. You will want to find a financial planner who offers the right services for you. You can rely on word of mouth to find your financial planner, or use your lender, super fund, or a financial advice professional association. When looking for a planner, we recommend asking for the Financial Services Guide (FSG). The FSG is an important document that shows you the following about any financial planner and the organisation they work for (if they are not self-employed):
- How they charge, earn commissions, and receive benefits
- How do they deal with complaints
- Their AFS license number
- Links to product providers
- The services they offer and the products they advise on
- Who owns the company
Most financial planners have their FSG listed on their website, or you can contact them directly for a copy. The FSG is a vital document that allows you to narrow your choices and find financial planners who can help with your goals and needs.
Meet planners to ask more about their services
When you have narrowed your choices, we recommend meeting with potential advisors. Meet with a few so that you can compare them and ensure that you are making the right choice. The majority of financial planners do not charge you for the first meeting, allowing you to meet them with no obligation or charge. When meeting financial planners, you will want a list of questions you can ask them to ensure they are the right fit. We recommend asking the following:
- How will they manage your money
- How often will you meet
- How will they consult you on decisions
- How will they manage your investments
- How will they deal with complaints
- How to end your agreement with them
- Their qualifications, speciality areas, and main client base
- The fees you will pay
- What information will you receive, and how often
- What commissions or incentives do they receive if they sell a financial product
- Who will look after your account if they are away
Find your financial planner today
By using our four considerations, you can easily find the right financial planner for you. You can also turn to experts, like those at Solace Financial, to find your new planner. Their team of expert financial planners have different areas of expertise and a long list of glowing recommendations that allow you to find the perfect financial planner that aligns with your needs. Contact Solace Financial Planners to arrange your first meeting today.
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