Updated August 2022
Who doesn’t want a financial adviser you can trust, relate to and who gets results? 3 tips for getting your best financial planner – question, build a relationship and credentials.
In Day5 you saw just how many articles, rating, comparison, and “find a” sites there are that analyse the performance of financial advisers (see the Big Directory). Tomorrow we look more closely at them.
But even with so many sites and government regulation, how come?
… some of the biggest crooks in financial services are the most highly qualified(CEO ASFA. June 2015 Money Magazine Susan Hely
Retirement advice by financial advisers
33% is poor, 58% is adequate and 3% is goodASIC study
Let’s expand on 3 tips for making sure you get your perfect financial adviser:
- Talk to them and ask a lot of questions
There’s a huge lack of faith and trust in the financial advice industry, building trust is now an integral part of business survival. Competition for your business is fierce! So don’t hesitate to get clear and written answers to financial issues important to you.
Here are the areas MoneySmart (ASIC) suggests you cover in its Questions to ask a potential financial adviser. We’ve attached our MoneySmartFinancialPlannerQuestions, so you can add to them, print them out and, better still, send them to any adviser you’re considering.
- Financial qualifications and experience
- Client’s needs
- Financial advice fees and charges
- Independence | Financial products and sales incentives
- What to look for in financial advice
- Build a Relationship
Build a long term relationship of trust with a financial adviser, like you would with your doctor suggests Mark Bouris in “How to pick a planner”.
find your ‘financial doctor’Mark Bouris
How much responsibility will you accept? Do you want:
- Control? If you want to add to, or alter their decisions. You’ll have to put in more time and research.
- Your adviser to make all, or most, of the decisions?
Good advisers are good ‘people people”, suggests Bouris. Flexible enough to adjust and meet your needs. Ask them if, and how they can adapt. So if your circumstances change and you want to change or exit your strategy, can they?
Do you and the planner’s personalities ‘fit’?
“If you don’t ‘click’ [with them] think twice.Mark Bouris
Your relationship should never be focused on a one-off transaction but an ongoing series of engagements over many years.
This allows them to develop a great understanding of you also.
This makes a big difference to the quality of the advice they deliver.
Remember advice is more than just data and facts.
Teaming up with a planner is just as much about gut feel and comfort – just like any other relationship
… good planners will also be quietly assessing you to as a fit for their business.”
- Check out their credentials and experience yourself
For many this just involves word of mouth or phone a friend. If you want to rely on friends, family or acquaintances – up to you. But you can check them out on rating sites (Day10) and or Day11 the “Investing Information Tsunami”.
Your Task/s today:
Hopefully you’ve done your part of the Challenge – checking out BiG’s Posts and doing your Worksheets – as you start moving towards getting a start on, or improving your investing.
Day10 “How to choose a financial adviser and advice you can trust. Part 2 Rate the Raters! Investing Rating sites, Top 10 …, Best …”
Day11 “How to choose a financial adviser and advice you can trust. It’s all about the faith! Part 3 The Investing Information Tsunami! Media, Books, Magazines, Websites, Blogs, Podcasts, Webinars …”
Day12 “How to choose a financial adviser and advice you can trust. It’s all about the faith! Part 4 Less Regulated Advisers – Analysts, Commentators and Gurus”
I’d be delighted if you find my work helpful and share it with friends and family. All the very best with your investing.