The realm of personal finance can be complex. You may be good at saving or making money but can you make your savings grow? In order to meet your long-term financial goals, it can be a good idea to seek professional financial advice. Not sure where to begin or how to find a reputable advisor? Read on for an introduction to the basics.
What can a financial planner help me with?
Having a financial advisor can help you gain direction and meaning where your financial decisions are concerned, as well as assisting you in understanding how decisions you make affect other areas of your finances. Purchasing one investment product, for instance, might help you pay off your mortgage faster or – heaven forbid! – it might mean you have to delay your retirement.
Common areas that people seek assistance with are:
- Debt management
- Estate planning
- Investment
- Retirement planning
- Superannuation
- Wealth accumulation
Tips for finding a quality advisor
In order to find a decent, trustworthy and, ultimately, helpful financial planner take note of the following tips:
- First of all, decide what it is you need advice about. Think about what goals you want to achieve. Is it just a stress-free retirement or do you need to pay for several kids to get through university?
- Speak to friends and family to see if they have a good financial planner. Other organisations are there to assist as well, such as the Financial Planning Association or CPA Australia. They can help you locate a planner by suburb and offer other handy tips.
- It may seem obvious, but deal with professionals, that is, only advisors and planners who hold an Australian Financial Services Licence (AFSL) or those authorised to represent a business licensed through the Australian Securities and Investment Commission (ASIC). You can check with ASIC if you are not sure what the planner’s status is.
- As well as shopping around and asking for different services guides, which must legally be presented if requested, ask what area an adviser specialises in. Be sure to match yourself with a planner who is experienced in your area of need.
- Find out how much the service will be. Is there a basic fee or is the advisor one of the many who take a commission if you invest in a particular company? Furthermore, are they offering you the full range of schemes or just ones from their own company? Be careful - you could quite easily miss out on a deal more suitable for your needs.
Where do I start?
One of the best places to seek financial advice is the Financial Planning Association of Australia. The FPA is the peak professional body for financial planners, currently representing around 12,000 individuals and businesses. Members of the association are required to follow a code of ethics as well as rules of professional conduct, with the aim of protecting those who seek professional financial advice.
Misconceptions where financial planning is concerned
- As “financial services” is a broadly applicable term, an “accountant” can not help with all of your needs, unless they are covered by an AFSL Licence or are a representative of a holder of one. Unless covered, a garden-variety accountant can’t offer investment advice or specific financial products.
- Don’t you need to be wealthy? It is not just the wealthy would use finance professionals, so no, you don’t have to be swimming in cash to employ an advisor. It money is a bit tight, ask about expenses and fee costs upfront. That said, don’t be scared off by the prices: a good planner can help set you up for life and save you money as well. Think of their fee as an investment.
