How to Choose a Financial Planner

It is a very hard step to choose a financial planner who can help provide you sound financial advice without just trying to sell you all sort of financial products.

Check their credentials

A financial planner should be compliant with the RG146 / PS146 ASIC regulatory guide. They should at least have a diploma of financial planning and have a speciality in Superannuation, Investments etc. depending on your needs.

Choose a financial planner who belongs to a member of either the FPA or the AFA

The FPA and AFA are the organizational bodies which manages the code of ethics and rules of professional conduct, over and above what is required by law for a financial planner in Australia. Financial planners who belong to these organizations must also undertake continuing professional development.

Refer to the FPA or AFA site to look for a certified financial planner.

This service helps you identify financial planners in your local area.

Ask an associate for a referral

People who have good experiences with a financial planner would not have any issues referring that financial planner on to you.

Talk to a CFP professional

CFP certification is the global symbol of achievement in financial planning. The CFP Mark is awarded to individuals who have gone beyond the competency, ethics and professional practice standards required of other FPA practitioner members. Each year CFP professionals must renew their right to use the Mark.

Look for someone who can manage your confidential information

You would be sharing a lot of confidential information with your financial planner. There is a need to establish a trust relationship. Once your financial planner listens to what your base requirements and current status in your financial status is, he or she will provide a Statement of Advice which gives you a recommended strategy for achieving your target.

For your first appointment

There's no need for you to go into too much detail for the first meeting you're your financial planner. However, what you want to be prepared for is to provide him or her with all relevant information about your income, debts, what you own, and your future financial expectations. You should also ask questions about the financial planner's qualifications, experience, area of specialisation and what they expect to be able to do for you. Charges are also a key differentiating factor.

There are certain financial products which allow the planner to receive an ongoing commission even after they sell the product to you. Therefore, this has to be made clear upfront.

Read, read and read up!

Search on the internet and understand all perspectives from blogs before committing to a financial planner. Try not to be pushed up against the wall. Some financial planners tell you that you need to act before it's too late! Well, it's never too late so take your time.