How to choose a financial planner

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How to Find a Financial Planner at http://www.simplewealth.com.au Finding the right Financial Planner can be a daunting task. Here are a few tips to help you on your way.

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HOW TO CHOOSE A FINANCIAL PLANNER: 

HOW TO CHOOSE A FINANCIAL PLANNER

Finding a Financial Planner is not an easy task : 

Finding a Financial Planner is not an easy task

You are out there trying to find someone who you can trust to manage your superannuation or life savings and relying on their expertise to help you achieve your financial goals: 

You are out there trying to find someone who you can trust to manage your superannuation or life savings and relying on their expertise to help you achieve your financial goals

You are unlikely to have ever met them so unless they were referred by friends or colleagues, you’ve probably never even heard of them : 

You are unlikely to have ever met them so unless they were referred by friends or colleagues, you’ve probably never even heard of them

So where do you start?  The Financial Planning Association has published a guide which is quite informative but here are a few tips to help get you started : 

So where do you start?  The Financial Planning Association has published a guide which is quite informative but here are a few tips to help get you started

The first thing you need to do is shop around! : 

The first thing you need to do is shop around!

Interview a few advisers until you find someone you feel comfortable with : 

Interview a few advisers until you find someone you feel comfortable with

Most advisers will offer a free initial consultation to find out what it is that you are looking for. Take this time to ask questions about them and the organisation that they are working for : 

Most advisers will offer a free initial consultation to find out what it is that you are looking for. Take this time to ask questions about them and the organisation that they are working for

One of the first things that you want to ask is What are your Qualifications?  Entry requirements to financial planning can be very basic : 

One of the first things that you want to ask is What are your Qualifications? Entry requirements to financial planning can be very basic

A good start is to look for an adviser who has the Certified Financial Planner Designation (CFP) : 

A good start is to look for an adviser who has the Certified Financial Planner Designation (CFP)

Certified Financial Planner is the highest designation an adviser can achieve and is recognized worldwide : 

Certified Financial Planner is the highest designation an adviser can achieve and is recognized worldwide

It means that the adviser has completed a course of study well above the minimum required by law and that they are bound by the Financial Planning Associations Code of Ethics and Professional Standards of Behaviour : 

It means that the adviser has completed a course of study well above the minimum required by law and that they are bound by the Financial Planning Associations Code of Ethics and Professional Standards of Behaviour

Secondly, find out how they are remunerated : 

Secondly, find out how they are remunerated

They may charge you a fee for service like your accountant or lawyer or they may charge a fee based on the value of investments they manage for you : 

They may charge you a fee for service like your accountant or lawyer or they may charge a fee based on the value of investments they manage for you

Some may use a combination of both. Other advisers may charge you little or nothing initially but receive their revenue from the product providers that they invest your funds in : 

Some may use a combination of b oth. Other advisers may charge you little or nothing initially but receive their revenue from the product providers that they invest your funds in

I’d believe that this is the least preferred method in my opinion for two reasons: 

I’d believe that this is the least preferred method in my opinion for two reasons

1. Not all commissions are created equal and you might find yourself in an investment that is great for the adviser but not so good for you and: 

1. Not all commissions are created equal and you might find yourself in an investment that is great for the adviser but not so good for you and

2. In the latest survey by ASIC on the quality of financial advice, it was found that advice provided by commission advisers was generally of a lower quality than that provided by their non-commission colleagues : 

2. In the latest survey by ASIC on the quality of financial advice, it was found that advice provided by commission advisers was generally of a lower quality than that provided by their non-commission colleagues

The third piece of information I suggest you find out is who ultimately owns the financial organisation that you are considering dealing with : 

The third piece of information I suggest you find out is who ultimately owns the financial organisation that you are considering dealing with

Almost 70% of advisers work for an organisation that is either directly or indirectly owned by a bank, insurance or other financial institution : 

Almost 70% of advisers work for an organisation that is either directly or indirectly owned by a bank, insurance or other financial institution

This is not necessarily a bad thing in itself however, you need to be aware that advisers may be incentivized for recommending their parent companies products : 

This is not necessarily a bad thing in itself however, you need to be aware that advisers may be incentivized for recommending their parent companies products

Lastly, find out what you are getting for your ongoing fees! : 

Lastly, find out what you are getting for your ongoing fees!

The adviser should be able to clearly articulate their ongoing service package : 

The adviser should be able to clearly articulate their ongoing service package

You need to establish that you are getting value for money as well as an appropriate level of adviser / client engagement : 

You need to establish that you are getting value for money as well as an appropriate level of adviser / client engagement

This is by no means an exhaustive list of questions that you should ask prospective advisers however I hope it provides you with a good starting point : 

This is by no means an exhaustive list of questions that you should ask prospective advisers however I hope it provides you with a good starting point

For more helpful tips and interesting information regarding financial planning and investing, click on the link below www.simplewealth.com.au or put the address into your browser: 

For more helpful tips and interesting information regarding financial planning and investing, click on the link below www.simplewealth.com.au or put the address into your browser