Choosing a financial planner is not an easy decision. They will be taking care of your finances and helping you make financial decisions that can shape your future, so you want to be sure that they are the right choice. Knowing what to look for and the factors you need to consider when choosing a financial planner can be tricky, especially if you have never used one before.
You head online for guidance, but page after page of confusing, contradictory information leaves you frustrated, unsure where to turn or who to trust. Luckily for you, we are here to help! Today, we walk you through the 5 factors you need to consider when choosing a financial planner to ensure you make the right decision.
1. Consider What You Want from a Financial Planner
Before searching for a financial planner, you need to consider what you want from them. Consider the goals you want to achieve, the stage of life you are in, and how much money you currently have. Doing so will help you see whether the goals are attainable and whether significant changes will be needed to achieve them.
Once you have defined your goals, consider how you want a financial planner to help you achieve them. Are you looking for a planner to focus on debt management or growing investments? Is budgeting a priority, or are you focused on investing and growth for your future? It’s important to know what you want to ensure you choose a financial planner who has experience in this area. Most planners will focus on a specific area of finance, such as budgeting, retirement planning, insurance, taxes, or estate planning, so it’s worth having an idea of what you want to ensure you pick the right planner.
2. Consider Whether You Want General or Personal Advice
You also need to consider what type of advice you want from your financial planner. Financial planners typically offer two kinds of advice: general financial advice or personal advice. To help determine what kind of advice you want, we have outlined them below:
General Financial Advice
General financial advice will provide you with generalised advice that is not tailored to your personal situation or any goals you have. Financial planners can offer general advice quickly, but it often does not consider how it might affect you, so it might not be the best advice for your finances.
Personal Financial Advice
Personal financial advice is a popular option, as the advice is tailored to your specific situation and goals. Personal advice is usually given with your best interests considered and will usually include the following:
- Comprehensive advice: including developing a financial plan to help you achieve your financial goals, like insurance, retirement planning, savings, and investments
- Ongoing advice: including monitoring and reviewing your financial plans
- Simple, single-issue advice: helping with contributing to your superannuation fund, handling shares, or another single financial issue
3. Consider the Services They Offer
When choosing a financial planner, you want to ensure that their services will benefit you. Not every financial planner offers the same services, so you must consider what you want and check their services to ensure that they are suitable for your needs. Financial planners will typically offer the following services:
- High-net-worth investment services
- Investment advice
- Pre-retiree services
- Retirement planning
- Superannuation advice
- Wealth management
- Financial analysis
- Goal setting
- Insurance planning
- Tax optimisation
When you meet with a financial planner, the services they offer are essential, but you will also want to ask some questions about how they operate to ensure they are a suitable option. Typically, we recommend asking the following questions:
- How will they manage your money
- How often will you meet
- How will they consult you on decisions
- How will they manage your investments
- How will they deal with complaints
- How to end your agreement with them
- Their qualifications, speciality areas, and main client base
- The fees you will pay
- What information will you receive, and how often
- What commissions or incentives do they receive if they sell a financial product
- Who will look after your account if they are away
4. Consider their Financial Services Guide (FSG)
When narrowing your choices of financial planners, you can use word of mouth for any recommendations, or you can use a financial advice professional association to hear of recommendations or reputable planners. No matter how you narrow your choice, make sure you ask for a Financial Services Guide (FSG), which provides you with the key information you need to decide which planner is right for you. The FSG documentary typically shows:
- How they charge, earn commissions, and receive benefits
- How do they deal with complaints
- Their AFS license number
- Links to product providers
- The services they offer and the products they advise on
- Who owns the company
Reputable financial planners often list this on their websites for you to access, or you can speak to them directly to obtain a copy. Any reputable financial planner will be happy to provide you with their FSG to help you make your decision.
5. Consider Your Budget
Finally, consider your budget to ensure you find a financial planner who fits it. Consider carefully how much you are willing to pay, how long you can afford to pay, and what you want for your budget to ensure you make the right choice for your financial goals and current budget.
Find Your Financial Planner Today
By considering these 5 factors, you can easily narrow your choices and find the perfect financial planner for your goals and budget. When looking for a financial planner, we recommend checking out Solace Financial, which is a team of expert providers that can take care of your finances. Each planner has a dedicated area of expertise and can help you to overhaul your finances and achieve your goals. Contact Solace Financial to learn more about their financial planning services in Brisbane today!
