Find an adviser that suits you and your goals
A good financial adviser works with you to understand your needs, your financial goals, and helps you to create a plan to achieve them. Anyone who gives financial advice must have a Financial Service Provider (FSP) License.
1. Decide what you want from financial advice
Before you get financial advice, decide what you want to get out of it, depending on your stage of life, how much money you have, and what you are trying to achieve.
A financial adviser can help you make financial decisions and plan for the future. This might include advice about budgeting, investing, retirement planning, estate planning, insurance, and taxation.
2. Choose the right financial advice for you
Any financial adviser can give you general financial advice.This type of advice does not consider your situation or goals or how it might affect you personally.
However, a good financial adviser can also give personal financial advice. This advice is tailored to your financial situation and goals and is in your best interests. It can include:
- Simple, single-issue advice — Help with one financial issue, for example, how much to contribute to your retirement, or what to do if you inherit shares.
- Comprehensive financial advice — Help to develop a financial plan to reach your financial goals. This covers things like savings, investments, insurance, and retirement planning.
- Ongoing advice — Regular monitoring and review of your financial plan and affairs.
3. Meet and compare financial advisers
Once you know what you want, find an adviser who offers the right services for you.
Financial advisers do not usually charge you for the first meeting. This makes it easy to meet with a few different advisers to compare the different offerings.
When you meet an adviser, ask them about the following:
- What are their qualifications, size of client base, and specialty areas?
- What fees will you have to pay for, and how often and what you’ll get in return?
- How will they manage your money?
- How often you will meet?
- What information will you receive and how often?
- How will they consult you on decisions?
- How will they monitor and manage your investments?
- What commissions or incentives do they receive from financial products, and how they will choose products to recommend to you?
- Who will look after your account when they are away?
- How they will deal with complaints?
- How to end your agreement with them?
A good adviser will get to know you, keep you informed, and help you achieve your goals. They will also discuss how much risk you are comfortable with.