In these uncertain financial times, it is more important than ever to have a sound financial plan.  Planning for future goals and retirement is a critical activity for everyone, no matter their age or financial status.   While it is possible to manage personal finances independently, it may be prudent to consult with a financial professional when considering larger investments, specific retirement plans and estate planning.

Check Credentials

Before beginning any professional relationship with a financial advisor, take time to make sure they are properly licensed and credentialed to handle your monetary affairs.  The Australian Securities and Exchange Commission website registry, found here: http://www.search.asic.gov.au/fsr/flb.html, can verify any provider’s licensure status.  The ASIC also maintains an Info line with licensure information on 1300 300 630.

Know What You Want

Before consulting with a financial advisor, it’s important to have clear financial goals.  Is money needed for retirement?  Are there large bills to be paid? Are there children to send to college? Different individuals and families will have different needs; the financial advisor needs to be aware of any specific needs and wants a potential client has before developing the best plan.

Find the Right Provider

The best source for references to a reputable financial advisor is word of mouth.  Speak with friends and family who have financial plans for recommendations.  Frequently colleagues at work may have suggestions as well.  The Financial Planning Association (FPA) and CPA Australia websites also offer lists of providers categorized by areas served.   Do a quick search on the internet of any provider you are considering; many third party consumer opinion sites may have information relevant to other customers’ experiences.

Do Your Homework

Before seeking any advice, ask about any fees or charges that may accrue during a consultation.  Some providers may offer some advice for free, but most providers will charge for any advice given.   Report any individual or agency that behaves suspiciously or fraudulently to the appropriate authority.

Talk to several different providers before making a decision.  Money management is important enough to spend extra time researching and interviewing potential advisors.   Ask for financial reports on the products they represent covering several years.  Many financial advisors are only able to offer limited numbers of products, as they often represent specific financial institutions or interests.  Visiting many potential advisors will provide a larger picture of what services are available and how each has performed over a span of time.

Ask a lot of questions, and listen carefully to the responses.   It’s important to have a trustworthy and open relationship with anyone entrusted with the financial future.

Key Questions to Ask:

• How experienced is the provider?  Does he or she have any specialized training or certifications?
• How can the provider be contacted if there are questions or concerns?
• Can changes be easily made to the plan if a change in life situation occurs?
• Are there references or testimonials from previous customers?
• Does the provider have long-term customers, or is there a high rate of turnover?

Photo by Digital Sextant

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