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How to find a quality financial advisor
I hear a lot of advice to consult a 'quality' financial advisor. What are the key points to identify a quality advisor? Ben. Wollongong.
To find a great financial advisor is not easy, but if you put in some smart homework and follow my advice it will reduce the chances of ending up with a dud or a crook.
You want someone who will come to learn to know your goals, such as, to own a house, to retire with a million dollars in the bank or the equivalent adjusted for inflation, and maybe a rental property at a favourite location where you might one day retire. You need an advisor to check out how you are going for these goals and then create a plan to make sure it happens.
To find a great financial planner or advisor, I recommend the following as a starting point:
- Make sure you ask them about their qualifications and experience.
- Ask them if they are independent?
- Ask them if they are a Certified Financial Planner?
- Use referrals from friends & family.
- Ask them how they charge?
- Ask if they accept commissions as payment?
- Ask if they are fee for service?
- Ask to see their Financial Services Guide.
- Make sure they want to create a plan for you and not just flog your products.
- Make sure you will get your advice in writing.
- Go to the FPA website where you will be given some good questions to ask and issues to check. But a word of warning, just because they are a member of the FPA is no guarantee that they are good or honest. You will have to check them out. Make sure you know all of your charges - both payments to the adviser and anyone else who provides services or products, such as fund managers. You should get a good plan for around $4000 depending on your complications. If you have simple issues, it could be cheaper but if you are a lot of work, the charges will rise.
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