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

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