The first visit to a financial planner is a pretty daunting experience for lots of people. No doubt the current climate of distrust towards the advice industry doesn’t help put people’s minds at rest either.
Which is probably why I was contacted recently by a ‘friend of a friend’ and asked what sort of financial bits and pieces should they bring along to their first visit? My immediate response was “not a lot”. Yes, I know, the large institutions suggest a list longer than a Leonard Cohen song, but for me, the first visit shouldn’t be all about ‘you’, rather it’s the ideal opportunity to also see if the adviser is going to be the right fit.
Yes, you will need a few key bits of information which will obviously depend on the exact reason you want advice, but nothing more detailed than a few figures written on the back of the proverbial envelope. Such information as how much is in your superannuation, how much savings you have and any other assets you might own. Now, throw in any debts and you’re done. Bingo, nice and easy.
Have no fear if you think this seems a bit ‘light- on’ in regards to being able to analyse your situation. I can assure you that these few sketchy figures will eventually be replaced by the financial planner for a very detailed compilation of your financial situation, including your tolerance towards investment risk and your goals and aspirations.
But your ‘envelope’ information is certainly enough to allow any financial planner to get a good understanding of whether they can be of help whilst you’re not handing over the intimate details of your financial situation to someone who is at this point, a total stranger.
Question Time
And now, for the main game! It is important that you also get enough information from the adviser in order for you to get to know them. Start with their experience in the industry, their academic qualifications and how long they have been with their current employer. You ideally want to deal with someone who has at least 5 years experience and hold a recognised academic qualification such as a degree.
Next, find out about the services the financial planner offers and check if an appointment is always necessary or can you drop in. Many people complain about a lack of communication with their adviser, so get to know what they do in that respect.
Find out exactly how many ‘touches’ are done throughout the year, and by what method. Are there phone conversations, face to face meetings, regular seminars, and/or regular newsletters or similar.
Don’t forget to inquire about the costs to get the ‘ball rolling’ so to speak and any ongoing costs. There is nothing worse than suddenly getting an invoice for an amount you were never ready for.
Remember to dig deep and make sure the financial planner is specific and detailed. Don’t accept that they can’t give you at least an estimation of costs because they most certainly can.
The Financial Services Guide
By the way, there is a document that is legislated to be given out to all new clients at this first inter- view. It’s called the “Financial Services Guide” and it actually provides in writing the answers to a lot of the questions we have just outlined. Take it when offered, but don’t let it be a substitute for the adviser actually answering your questions.
And finally, keep asking those questions until you are thoroughly satisfied; after all, you are choosing someone who is going to be looking after your financial future for what could be a very long time!
If you have any stories about your financial planner I would love to hear about them.
