Advice from a financial professional will guide you to have a plan for the future and rely less on the government. Putting your finances in order will ensure you have enough to support yourself even after retirement.
Here are five steps to help you choose a financial adviser that’s right for you:
Industry associations such as The Financial Planning Association and the Association of Financial Advisers usually have ‘find an adviser’ services that will help you find an adviser in your area. Most associations require their members to participate in ongoing training, have a code of conduct for members to follow. You can also find an adviser here.
Once you have a short list of advisers, it’s important to check their history, qualifications and current employment status before you approach them about getting advice. Before you choose an adviser, you should check ASIC’s financial advisers register to make sure they have a license and the right experience andqualifications to give you the level of service you need.
A financial adviser can be qualified to give advice after meeting only minimum training requirements. You should look for an adviser who also has a diploma, an advanced diploma or degree qualification in a relevant discipline such as finance, economics, accounting or financial planning. Like other professionals, it’s important for an adviser to keep up with industry or regulatory changes that might affect their clients. An adviser should participate in regular training activities such as courses or seminars run by universities, industry associations, professional bodies or registered training organisations.
Ask the adviser about their typical clients. This will help you assess whether they have the experience to deal with people with similar issues and goals to you. For example, are the adviser’s other clients planning for retirement or are they young families wanting to save for their children’s education? Also find out how long they’ve been in business and if they have client testimonials you can read.
When you speak with an adviser, make sure they focus on the services and strategies they can offer you, rather than the products they can sell you. Check if the adviser can provide advice about the financial products you currently have, for example super or insurance.
Be careful of advisers who only sell one investment product or solution as this may mean the advice doesn’t meet your specific needs and objectives.
Ask the adviser for an estimate of the cost of their advice. Even a rough estimate will give you an idea of what you’ll be paying.
How confident are you in your retirement plans?
