Finding a financial planner

If you are going trust someone with your financial future then it really does pay to take your time finding the right one for you. Acting upon a friend’s recommendation can be a good way to go if you and your friend have similar investment goals, incomes and values but otherwise, you may need to shop around. But how do you know when you’ve found a good one? Here are some of the best questions to ask to find a financial planner who will adequately meet your needs.

Top ten questions to ask

1. Are you a member of the Financial Planning Association?
2. Are you a certified financial planning professional?
3. Do you have a copy of the Financial Services Guide for me to read?
4. How long have you been working as a financial planner?
5. Do you have an area that you choose to specialise in?
6. How much will it cost me to hire you and how do you make your income from me if I decide to do business with you?
7. Will you prepare a written plan for me?
8. How often will my plan be reviewed and will this cost extra?
9. If I decide not to take your advice do I still have to pay for it? What if I don’t want to work with you anymore?
10. Who owns your business? Are you independent or part of a bigger financial group?

Employing your planner

It is also important that the planner you decide to work with is someone you like, get on with and feel you can trust. Having similar communication styles may also help. It might be important to you that the planner you choose is clearly well off – that may indicate that they practice what they preach – or perhaps are older and more experienced. A planner who has survived various share market fluctuations and come out on top may be better able to advise you than an individual who hasn’t yet faced significant challenges in this arena. That said, some younger planners may have been exposed to more modern wealth-building strategies as part of their (on-going) education.

The Financial Planning Association of Australia has a great range of resources for new investors seeking financial advice and can also help you locate a planner by suburb using their online tool.