A pro can guide you to a sound financial future
IF you are planning to buy a house, hoping to set some long-term financial goals, planning your retirement or have a lump sum of cash to invest, you should seek some professional advice.
Good financial advice can make managing your money a whole lot easier but it’s important to know who you are dealing with, that they are putting your best interests first and what’s in it for them!
Before deciding on a Financial Planner you should ask a few questions:
REQUEST a copy of their Financial Services Guide to be sent via email, fax or post before your first meeting — and be sure to read it;
DISCUSS the planner’s background and qualifications;
DISCUSS whether there are any limits to the advice they can provide;
FIND out exactly who the planner represents and ask if they have any preference for a particular type of investment or fund manager and why; and,
GAUGE the planner’s attitude to risk. Does it match yours?
Most pricing structures are set out in the Financial Services Guide but they aren’t set in stone and are open to negotiation.
Generally, you will pay an upfront plan fee to document the advice in a Statement of Advice.
You should not proceed with any investment recommendations without this document.
It includes the basis for the recommendations, how the advice meets your needs, the risks involved if any and all associated costs with both products recommended and advice fees. Most advisers charge a flat dollar fee to prep prepare the Statement of Advice so you should know exactly what you are paying for before proceeding.
You may also be offered an ongoing review service (usually annually) and portfolio management. No plan should be ‘set and forget’, but a simple review for an agreed modest fee is usually adequate unless your circumstances have changed.
One way to seek the services of a professional is through recommendations from someone who has had a positive experience. Quality advice can make a big difference to meeting your goals and objectives when it comes to your money but do your research. — Sam Stevenson is an authorised representative and credit representative of JSSJ Financial Pty Ltd (ABN 556 126 054 37) trading as Edge Advisory Partners is an authorised representatives of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee