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How to CHooSE A FINANCIAL PLANNER
ESSEntial information for anyonE wanting to do morE witH tHEir monEy
S T E P S
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by Adrian McPhee
B.Comm (Acc), B.Laws, DFP
essential criteria for finding an adviser that’s right for you5
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FINANCIAL planning
At some stage of our lives, most of us will be faced with debts. There are many benefits
to working with a licensed financial planner. This guide will give you an insight to what
a financial planner does and how they can help you identify opportunities and grow your
wealth. Read on to discover what to look for (as well as some of the hidden traps) when
seeking professional financial advice.
Taking you in the right direction...
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do I need a financial planner?
Many people are unsure whether
they need a financial planner (also
known as a financial adviser). Some
people believe financial planners are only
for wealthy people, while others don’t
fully understand the benefits of getting
professional advice.
People usually seek the services of a
financial planner when they go through a
major life event, such as getting married,
buying a home, starting a business or
when they are approaching retirement.
These types of events often bring
about challenges in regards to money
management, taxation and investing. Expert
advice and guidance from an experienced
professional can help you make sense of
these challenges.
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Consulting a financial planner is a good idea if you want to:
• Develop a budget and create (or
enhance) your savings plan.
• Restructure debts to allow you to pay out
these debt faster and more efficiently
• Protect your income and assets from
an unforeseeable change in you or your
family’s circumstances
• Identify investment strategies that may
be suitable for you
• Prepare for a major life change such as
having a baby or buying a house
• Improve your financial habits so that you
can raise you and your family’s standard
of living
• Enjoy financial security so that you
can provide your children with every
opportunity to make the most of their
future
• Prepare for retirement and ensure that
you have certainty about what financial
products you’ll need, how much money
you’ll have and the type of lifestyle you
and your family will be able to lead
A good financial plan can help you achieve all of these goals. It’s also important to know
that while a financial planner can help you with specific products and managing one-off
events, it’s almost always beneficial to receive advice about your entire financial situation.
If you have all aspects of your financial circumstances working together as part of a cohesive
strategy, you’ll have a much greater chance of achieving your financial goals.
The important thing to know is that a financial planner can help you achieve positive
outcomes, to explore what’s possible, regardless of where you are at in life.
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Financial planners can give you a
‘big picture’ view of your financial
circumstances, help you explore your
possibilities and identify options, and help you
develop a wealth creation strategy so that you
and your family can enjoy a more prosperous
and secure future.
You may simply need advice on a specific
area of your finances, such as managed
investments or estate planning. On the other
hand, you might require comprehensive advice
about every aspect of your finances for peace
of mind that you are making the most of your
hard-earned money.
• Planning for retirement – how
to maximise savings, claim
superannuation, setting up a SMSF
and choose the right financial products
• Investing your money – both in
managed funds and in self-managed
super
• Banking products – savings accounts,
home loans and investment loans
• Will and testament advice – drafting,
investment and tax-related matters
• Taxation – personal and business tax
advice and tax-effective investing
• Insurance policies – life, trauma,
income protection and more
• Business planning – taxation, investing
profits and succession strategies
what does a financial planner do?
Some of the things that financial planners can help you with include:
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what can I expect?
Most financial planners work in
a similar way, and under law
there are certain things which you
must be provided to ‘Retail’ investors.
‘Sophisticated’ or ‘Wholesale’ investors
have different rules, so we’ll stick to
the rules for normal investors.
1. InItIal appoIntment
The financial planner will arrange a meeting
to discuss your goals and the type of advice
you need. They will also explain how they
work in more detail.
You may be asked to complete
documentation or gather information in
advance, such bank statements or records of
income and expenses. The better prepared
you are for this meeting, the easier you will
make it for the financial planner to provide
you with great advice.
2. agreement
If the initial meeting goes well, the next step
is to enter into an official agreement with
your chosen financial planner. You will need
to sign an agreement that clearly states what
advice the financial planner will provide, as
well as the fees involved.
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3. advIce
Your plan will be presented to you in the
form of a Statement of Advice (SOA).
Required by law, this document details every
aspect of your financial plan and strategy.
You should also receive a product disclosure
statement for each financial product that is
recommended.
4. ImplementatIon
When you have agreed to the
recommendations in your SOA, the next step
is to implement the advice. This may include
setting up structures to maximise your
benefits including purchasing, or investing
your money in, various financial products,
such as insurance policies, managed funds
and debt consolidation packages. Your
financial planner will guide you through
this process to ensure that everything is
implemented correctly and that all of your
questions are answered.
Your financial planner will guide you through
this process to ensure that everything is
implemented correctly and that all of your
questions are answered.
5. revIew
Regular reviews are important to ensure
that you remain on track with your
finances. Reviews are usually conducted
once a year, however a shorter timeframe
may be appropriate if there is a significant
change in your circumstances.
During a review it’s important to highlight
changes to your lifestyle or financial
situation that may require alterations to
your financial plan.
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what should I look for in a planner?
1. choose a lIcensed advIser
Only work with a financial planner who is
employed by, or authorised to represent, a
business that holds an Australian Financial
Services License (AFSL). Furthermore, it’s
also important to make sure the license
covers the specific services for which you
are seeking advice.
2. check experIence and qualIfIcatIons
Ensure your financial planner is well qualified
for the job. Typical qualifications in Australia
include a Certified Financial Planner (CFP)
qualification or a Diploma in Financial
Planning (DFP).
To ensure that you have confidence in the
service you are being provided, it’s worthwhile
to ask your financial planner how they keep
up-to-date with changes in the industry,
regulations and new financial products.
You would also be wise to peruse your
financial planner’s Financial Services Guide.
This document outlines important information
such as the financial planner’s services, fees,
commissions and how they actively go about
resolving complaints.
Increase your chances of success by working with the right financial planner to suit your needs. Here are five things to consider when choosing a financial planner:
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3. understand the costs Involved
Different financial planners charge different
types of fees. Costs will also vary depending
on the services you require. While there is no
standard fee system, every financial planner
will be able to provide you with a Financial
Services Guide that will clearly outline their
fee structure. You can use this as a basis to
compare the cost of financial advice from
different service providers.
4. research the fInancIal products and servIces on offer
Some financial planners are specialists and
some financial planners are generalist, some
planners have access to specialist teams
and a panel of experts and some work solo
or in small teams.
Some Financial planners may specialise in
certain areas, such as risk management or
superannuation, and some will have more
experience than others. Other financial
planners may have access to a panel of
experts that allow for more comprehensive
offering. For example, not all financial
planners can provide you with advice on
taxation.
In addition, some financial planners may
only recommend products issued by their
parent companies (i.e. large financial
institutions). Others may offer a wider
selection of products, but may not offer
the products you currently have or require.
A good planner will recommend the right strategy for you in a
transparent manner rather than trying to recommend products
from which they receive a higher commission.
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5. ask questIons
At your first meeting, it’s a good idea to ask
as many questions as possible. Here’s a
checklist of suggested questions to cover off
during the initial consultation:
• Does the financial planner have any
professional qualifications? If so, what?
• What kind of people do they advise?
• Do they specialise in particular financial
products?
• Do they work solo or in a team?
• If they work in a team how big and
experienced is this team, how many people
support them and what is there role?
• How is their advice/strategies
developed? Do they use a panel of
experts to review all advice/strategies?
• How often will they review your plan?
• What type of information will you be
given?
• Who owns the business and authorises
the financial advice?*
This will help you to get a feel for whether
or not the particular financial planner is
suited to you and your needs.
*Many financial planning businesses are owned by large financial institutions. This often means that the financial planner
you are working with will only offer advice on their own financial products and services. If this is of concern to you, then
you may wish to seek an independently owned financial planning company.
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REmEmbER: it pays to get professional advice
Many people dismiss the thought of
seeing a financial planner because they
are concerned about the cost. Others think
that financial advice is really complicated and
that it requires a lot of time and knowledge
to process large amounts of information.
Then there are those who think that receiving
financial advice is only beneficial for people
who already have significant financial
resources at their disposal. The reality is
that all of these notions are common
misconceptions that could not be further
from the truth.
Financial planning is not a luxury or a
privilege that is preserved for the rich,
and it does not necessarily require
massive changes to your lifestyle choices
or a dramatic increase in discipline in
regards to your spending habits.
Good financial planning is about utilising
the resources that you have available
to you, working with a professional to
organise those resources in an efficient
way, and then routinely monitoring the
progress of your finances to ensure
that you are actively realising the
goals outlined in your plan. With this
structured approach to managing your
money, financial planning becomes a
way of life that enables you to effectively
create wealth for your retirement.
Financial planning is about working with a professional to explore possibilities so that you can achieve positive financial outcomes.
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How are we different from your average financial planner?
Future Assist is truly independent in
the sense that we have no institutional
shareholders and no investors such as
banks or investment groups. This means
we are able to focus purely on strategy.
Our main objective is to provide strategic
advice, not sell financial plans as a means
of distributing products. We are motivated to
get the strategy correct based on your goals,
your needs and your objectives.
The advice we provide to clients is delivered
from a panel of experts with 60+ years of
collective industry experience between them.
We take into consideration all aspects of
your life and develop a plan that will help
you achieve your goals. We are helping
hundreds of Australians each year keep on
track to reach their retirement goals and
provide a better lifestyle for their family.
how can we help?
Future Assist provides financial planning, budgeting, debt consolidation and other financial
services to customers throughout Australia. We are a privately owned specialist financial
planning firm committed to providing ‘whole of life’ wealth management expertise to
motivated Australians.
The information provided in this article general in nature only. It should not be used as the basis of any investment decision as it has not taken any person’s personal situation, needs, wants or goals into consideration.
Future Assist Financial Service Group Pty Ltd FSL No# 413674; ABN 24 151 337 843 recommends that you seek personal advice from the an authorised adviser of an Australian Financial Services Licensee before making any investment decisions.
Future Assist Financial Services Group Pty LtdAustralian Financial Services License No. 434674
Future Assist Home Loans Pty Ltd ABN 14 140 670 908. ACL 393 356
Future Assist Accountants Pty LtdAustralian Tax Agent No. 07502006
Future Assist Property Services Pty LtdLicensed real estate agent in NSW, VIC, QLD, SA, TAS
Call 1300 118 618 now to SpEak to a finanCial adviSEr or viSit FuTuREASSIST.Com.Au
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