Do I need a financial adviser?

Good financial advice from an experienced, well-informed adviser can help you set your financial goals (and hopefully meet them), feel in control of your finances, get any government benefits you are entitled to, and protect your assets.

If your question is simple (for example, if you are thinking about changing your super contributions), you may be able to get financial advice over the phone. Simple financial advice on superannuation is available from the EISS by phoning 1300 307 844. This advice is provided by staff of Mercer Financial Advice, and is at no cost to members.

Complicated situations (for example retirement) will need an appointment with a licensed financial adviser.

In either case, the actual amount of savings or assets doesn’t matter – a strategy can be used by anyone.

What happens on the first appointment?

Your first appointment should be free. It is a chance for the planner to find out your expectations, needs and goals, and get a picture of your assets, debts, income and expenses, as well as how comfortable you are with risk.

You can take some of this information to the appointment, or sometimes you will be sent a questionnaire before the appointment so that the planner can get details on your situation. You may also be asked to provide the planner with authority to ask for info from your super funds and other investment products.

What will I pay?

The fees will depend on:

• Your needs, as the more complex your situation, the higher the fee.

• The planner, as some people will just charge more. Remember that expensive isn’t necessarily good, and low cost isn’t the same as good value.

Some planners may appear more expensive than others because the fee is all upfront. Other planners make money from ongoing fees. Just be sure you know what you are going to pay over, say, the next 5 years. Ask the planner to detail it for you. Also find out exactly what you get for your money.

The cost of a pre-retirement plan (or ongoing advice) may be deducted from your EISS benefit. The form is available on the EISS website.

What if I don’t understand what I get told?

Ask questions. If you don’t understand the answer, ask again. Taking some notes at the appointment(s) might also help. If the planner can’t or won’t explain things to you, consider whether you may be better off with a planner who can.

Remember, it’s your money, and the planner is working for you.

What if I don’t like the person?

Go somewhere else. You are not obliged to use a planner just because you have had an initial appointment with them.

In fact, even if you do like them, get a second opinion. Yes, it’ll cost more, but it’s your financial future.

Financial Planning What to expect when seeing a Financial Adviser?You may be hesitant about seeing a financial planner, but you shouldn’t be. Remember that this is a step in taking charge of your financial future.

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www.eiss.superfacts.com

STREET ADDRESSLevel 1, 70 Pirie St Adelaide SA 5000

POSTAL ADDRESS GPO Box 4303, Melbourne VIC 3001

GENERAL INQUIRIES1300 307 844

TRUSTEE OFFICE(08) 8224 6400

FAX (08) 8224 6499

EMAILinquiries@electricsuper.com.au

Contacting the Scheme

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How do I know I can trust them?

The vast majority of financial planners that we come across are trying to do the right thing by their clients. There are several ways to help yourself feel more comfortable:

1. Ask to see their qualifications, and make sure that they are at least a member of a professional association (such as the Financial Planning Association).

2. Ask if they have links to any financial organisations (ie are they independent?)

3. Trust your instincts. If you’re not sure, don’t commit to anything.

4. Get referrals from your friends and workmates to professional financial planners that they have used. Or ask the planner for references from existing clients.

5. See a second planner for another opinion.

6. Go to some free seminars. Most financial planning firms run them. Check out the company and make sure that their message doesn’t come across as a sell job. EISS runs some seminars, which are advertised on our website and in newsletters.

7. Get somebody you trust to review the advice that you’ve been given. Does it make sense to a third person?

8. Future meetings may be needed to review your changing needs - are you comfortable with dealing with the planner on that basis?

We can refer you to Mercer Financial Advice who have knowledge of the Scheme and its benefits. While we do not recommend any specific company, Mercer have experience with the Scheme, and they also have other members as clients.

Their details are as follows:

MERCER FINANCIAL ADVICELevel 6, 70 Franklin Street, Adelaide SA 5000 – 08 8110 3458.

You are not required to see Mercer. If you have your own adviser, we will do our best to work with them and provide them with all the information they need.

Where can I get more information?

ASIC (the Australian Securities and Investments Commission) is the Federal Government regulator of financial markets, including financial advisers. ASIC runs a website called MoneySmart which you can find at www.moneysmart.gov.au. This is full of useful information on managing your money and investments. You can also contact the ASIC Infoline on 1300 300 630.

ASIC have also published a booklet on what you should think about if you need financial advice, which can be found at www.moneysmart.gov.au/media/460600/financial-advice-and-you.pdf

This newsletter has been prepared by Electricity Industry Superannuation Board ABN 57 923 283 236 as Trustee of the Electricity Industry Superannuation Scheme. This material includes general advice. The general advice had been prepared without taking into account your personal objectives, financial situation or needs. Therefore, before acting on this advice you should consider the appropriateness of the advice having regard to your personal objectives, financial situation and needs. You should also consult a licensed or appropriately authorised financial adviser before making any investment decision.

‘MERCER’ is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917. Copyright 2016 Mercer LLC. All rights reserved.

© EISS July 2017