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Questions to Ask When Interviewing a Financial Planner

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Finding a Financial Planner is not an easy task. You are out there trying to find someone who you can trust to manage your superannuation or life savings and relying on their expertise to help you achieve your financial goals. You are unlikely to have ever met them and unless they were referred by friends or colleagues, you've probably never even heard of them. So where do you start? The Financial Planning Association has published a guide which is quite informative but here are a few tips to help get you started.

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The first thing you need to do is shop around. Interview a few advisers until you find someone you feel comfortable with. Most advisers will offer a free initial consultation to find out what it is that you are looking for. Take this time to ask questions about them and the organisation that they are working for.

One of the first things that you want to ask is "What are your Qualifications?" Entry requirements to financial planning can be very basic. A good start is to look for an adviser who has the Certified Financial Planner designation (CFP). Certified Financial Planner is the highest designation an adviser can achieve and is recognized worldwide. It means that the adviser has completed a course of study well above the minimum required by law and that they are bound by the Financial Planning Association's Code of Ethics and Professional Standards of Behaviour.

Secondly, find out how they are remunerated and client centered financial planning westport connecticut. They may charge you a fee for service like your accountant or lawyer or they may charge a fee based on the value of investments they manage for you. Some may use a combination of both. Other advisers may charge you little or nothing but receive their revenue from the product providers that they invest your funds in. I'd believe that this is the least preferred method in my opinion for two reasons

All commissions are created equal and client centered financial planning westport connecticut

You might find yourself in an investment that is great for the adviser but not so good for you and In the latest survey by ASIC on the quality of financial advice, it was found that advice provided by commission advisers was generally of a lower quality than that provided by their non-commission colleagues. The third piece of information I suggest you ascertain is who ultimately owns the financial organisation that you are considering dealing with. Almost 70% of advisers work for an organisation that is either directly or indirectly owned by a bank, insurance or other financial institution. This is not necessarily a bad thing in itself; however, you need to be aware that advisers may be incentivised for recommending their parent company's products.

Lastly, find out what you are getting for your ongoing fees. The adviser should be able to clearly articulate their ongoing service package. You need to establish that you are getting value for money as well as an appropriate level of adviser / client engagement.

This is by no means an exhaustive list of questions that you should ask prospective advisers; however , I hope it provides you with a good starting point.

If you need more information or would like to make an appointment for a no obligation consultation, click here to leave your details and I will be in touch with you ASAP.

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