“Do you know a good financial planner?” is one question that would certainly keep me well fed. Presuming that is, that I was provided with a ‘hot dinner’ each time it was asked.
Unfortunately, I’m not in a position to know lots of planners these days so I thought I would show you how I would go about it. There are many variables when selecting someone to give you advice. You know, all of those little things that can easily turn someone off. Always remember though, it is your choice at the end, so take your time, and choose carefully.
An interesting aside to keep in mind is that ASIC, the industry watchdog, doesn’t demand a financial planner give the best advice. Rather, they expect a financial planner to always provide the most appropriate advice. Many people are totally unaware of this, not surprisingly. I have often heard said, that ” a good financial planner needs to be rich”. I can assure you, personal wealth is never going to be on the selection criteria, ever!
Attributes of a good financial planner
When searching for a financial planner, look for someone who will be easy to develop a working relationship with. Remember, you’re choosing the person who will be dealing with your money so open communication is a must. And make certain you won’t be afraid to ask, “I don’t understand, could you please explain it again”.
For me, a good financial planner is someone with an excellent knowledge of their role. They should have a level of experience that has exposed them to an array of market and economic conditions.
Of course, they will be licensed, with a clean record. And they should have a stable employment re- cord with some years in their current position. And finally, they will be personable, a good listener and have the ability to explain complex financial strategies, simply.
How do I find my perfect financial planner?
So where can you can you find this perfect financial planner? Well, the search starts at the Financial Planning Association or other recognised associations allied to the industry.
Being the industry body, membership indicates to me, that this person is committed to their chosen career. But more importantly, associations need members to abide by strict levels of client behaviour, and the FPA does this through their Code of Professional Practice. Take a bit of time to have a look at this code, it does emphasise what you should expect in your new financial planner.
The job now is to use the FPA’s search facility to look for some likely candidates among the association’s membership. Thankfully they have made the job very simple. Take a look.
But the FPA is only the first stop. Next, armed with a list of potential candidates, the next stop is the Australian Securities & Investments Commission (ASIC) site. These guys are the industry watchdog, and they have lots of easily accessible information. A search of their Financial Advisers Register reveals some very important information about your selected financial planners. Here you can discover;
Qualifications, experience, and employment history All the product areas the adviser can give advice about
If the adviser has been the subject of disciplinary action by ASIC
The name and number of their Australian Financial Services license holder
And all the details about who owns or controls the license holder
When you have narrowed down the field to some likely candidates, it’s now time to get to know them. And the only way to do this is to make an appointment for an introduction. Normally the first consultation is free, so take advantage of this.
During these interviews see whether the planner has the attributes you consider to be important and they are the one to guide both you and your hard-earned money. I have written a post about this first appointment so make sure to take a look.
Finally, once you have met them all, it is just a matter to select the one that ticks all the boxes. A good financial planner will become a partner, so choose carefully. And, if you don’t find anyone suit- able first time around, there are plenty more to look at.
Thanks for reading and I hope to see you very soon. Homepage
