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How Do You Find A Good Financial Adviser?

With the spotlight on all the issues in this industry, it is becoming tougher to choose a good financial adviser. There is so much information online but how do you trust someone(usually a stranger!) with your hard-earned money? How do you know they have your best interests at heart?

The good news is that there are some good tools you can use and the process is not so mind-boggling if you follow a clear checklist.

Compliance first;

 

1. Do check if they are registered on the Financial Adviser Register – https://moneysmart.gov.au/financial-advice/financial-advisers-register.      

  •  This register will show who they are authorized under namely the AFSL and what products and services they can advise on.                                                               This step is really important and should not be avoided despite all the word-of-mouth referrals and wonderful things you have heard about them.         (Remember Melissa Caddick, I really wish one of her clients had checked this register rather than only looking at her glowing share performance reports.)
2. Look at their FSG(Financial Services Guide) either on their website or when you meet them and go through this document thoroughly before you sign on the dotted           line. It is a legal requirement that this is the first document that an adviser should explain and clarify for you.
  • This document will reveal the name of the licensee and their associations with other related companies. It will show how your adviser gets remunerated and any commissions that the firm may receive. A firm can be called “independent” only if they do not receive any commissions. Most firms receive insurance commissions if they successfully place a policy and this should be revealed in the Statement of Advice.

Obligation free consultation

 
I know many are divided on this option. And that there is no such thing as a free lunch. There is a belief that if an adviser gives a free consultation they will recoup the cost when they quote you a fee. 
Partially true and there are advisers who now charge a nominal fee for the first meeting as well in order to avoid tyre kickers. Either way, it is important that you have a good chat so that you can determine whether you like them and their approach. This is your chance to ask all your doubts and if you are not comfortable with the answers then it is time to move on till you find your preferred adviser. 
Everyone’s situation is unique and you do not want a cookie-cutter approach and so it is also important to know if they have the skills and experience to advise you. The adage “Penny wise and pound foolish” holds true in this industry too. You can’t compare an adviser who predominantly has super and insurance experience to one who has dealt with complex structures like trusts and SMSFs. So be on your guard and understand the real value that you will obtain from this engagement rather than just looking at the fee.
 

Need Help In Finding A Financial Adviser?

1. I can help you with this overwhelming decision.

2. I can find one who has the necessary experience and expertise to suit your circumstances

3. I will prepare a customized checklist based on the questions you want clarified

4. My charges will be based on the hours involved

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