Here’s what to look for in a good financial adviser? Hopefully this can help you make a positive decision going forward in who you choose to deal with when you are making important life decisions.
Included is also ‘red flags’ on what to look out for, things to consider about what kind of service you want, the expectations you should have and more.
What to look for in a good financial adviser?
Andrew Here from Peak Wealth Management in our Sydney Headquarters.
We have been seeing a lot of people recently who are a little unsure on what to expect when seeing an adviser, and I just thought it would be a great idea to help them in what to look for in a good financial adviser.
I think first and foremost, before even beginning it is important to understand what you want from financial advice. Are you unsure what to invest in? Are you struggling to get ahead financially? Do you feel as though you aren’t taking any opportunities presented?
Also ask yourself what sort of service do you want. Do you want adhoc advice, or do you want and ongoing proactive service? It is important you understand this, to ensure it is going to meet your expectations.
Now a good adviser will ask a lot of in depth questions about yourself and what you want to achieve. It is certainly a red flag, if they begin discussing certain products (e.g. specific fund or a property) before understanding your wants and needs to help develop the strategy.
Once you understand what you want from an adviser, then that can set you on the right path to choosing the right adviser for you. It is extremely important that you pick an adviser who can deliver what you are looking for. Their Financial Services Guide can provide you a lot of this information, and also through the about us section on their website. But if you are still a little unsure, don’t hesitate to ask them that question.
Complementing this, I think it is important to review you prospective advisers educational background and also experience to really understand why that person may be uniquely positioned to help with you financial situation.
Now, it is important to recognise that when you do engage with an adviser, they are going to need to be remunerated somehow. So please spend your time understanding their fee structure and whether there are any conflicts. These are all detailed through the Advisers FSG, however I have seen it time and time again.. more conflicts do arise when commissions and kick backs are involved, and it can end up being harder for the adviser to stay independent and put your interests ahead of their own.
Find out who the prospective adviser is licensed through. In some instances, if an adviser is licensed through a product provider, then the products they can recommend may be limited to their own.
Finally, and importantly, please recognise that choosing to work with a financial adviser is like a getting into a relationship. You’ll only get out what you put in, and please ensure you feel comfortably to discuss your situation with them. If you don’t trust, like or feel comfortable with them, then the relationship is unlikely to work.
If you have any questions or want more information, please feel free to ask.
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