Finding the right family financial planner takes some time and research. The most important requirement is shortlisting several licensed and registered financial planners associated with the Australian Financial Planning Association (FPA) or even who are global Certified Financial Planner (CFP) professionals.
Once that has been established, contact these money planning advisers to set up initial appointments. To prepare for the meetings, ask lots of questions. Here are six important questions for a prospective financial planner.
Ask for Financial Service Guide
Financial planners in Australia are required by law to produce a copy of their Financial Service Guide when requested. This guide outlines the services and products offered, fees and commissions as well as procedures in dealing with customer complaints.
Questions About Financial Services and Products
There are hundreds of financial services and products in the market and each family will have different needs. Try to understand the range of financial services offered. Many financial planners specialize in certain areas – taxation, managed funds, shares, insurance products, retirement planning, estate planning, etc.
Request Info on Financial Adviser’s Client Base
Ask a few questions about the financial consultant’s existing clients and the approaches used when dealing with those clients. This gives some idea whether the approaches will suit the family’s financial needs and lifestyle.
Ask About Financial Advising Experience
The more experienced a financial planner is, the better. This, however, may come with a higher fee. That said, there is nothing wrong with engaging a less experienced but energetic adviser with sensible risk management ideas. Families uncomfortable about having their finances managed by a younger and inexperienced financial planner should ask if someone more senior within the financial planning firm would take a look at the financial plan as well.
Question Professional Qualifications
A good money planning adviser should have a mix of educational, professional and industry-based training. Make sure the planner graduated from a university or recognized financial education provider. Also, ask how he keeps up to date with current financial practices – does he attend workshops or enroll in short courses to keep up with the ever-changing industry? It wouldn’t do to have an obsolete financial plan!
Understand Fees and Commissions
While most people would like to know about fees and commissions first, it’s best to keep this question to the end as it will give a clear understanding of the financial services against which to justify the planner’s fees and commissions. Fee-related questions include the general service cost, charges when reviewing financial plans and payment options. Some useful information on how financial planners are paid can be found on the Australian Securities and Investments Commission’s booklet entitled Don’t Kiss Your Money Goodbye.
Try to arrange several initial appointments with potential financial planners before deciding on one. Be sure to ask for a copy of the planner’s Financial Service Guide first. Then ask about the services and products, clients, financial advising experience, professional qualifications and lastly the fees and commissions.
Found this article useful? Read also Choosing a Family Financial Planner, Understanding Family Financial Planning and Benefits of Family Financial Planning.
Reference:
Curtis, Gay. Smart Girls’ Guide to Money. Queensland: Wrightbooks, 2003.
Wei Yin Wong - I started my working life as a reporter at an English daily called The Sun in Malaysia 16 years ago, writing health-related articles. ...
