When it comes to financial happiness and investment performance, did you know that people tend to feel happier and more successful if they have the right financial adviser? But picking the right advisor may not be as simple as going online and finding a website. There are questions that you’re going to want to ask to ensure that you’re picking an advisor that can meet your financial needs now and in the future. Here are 10 questions you must ask when picking a financial adviser:
- How much do your services cost? In Australia, financial planners and advisers have to be upfront with their fees. This means you have to know how much it’s going to cost before services are performed.
- Are you licensed and what other qualifications do you have? All planners in Australia have to be licensed with ASIC. In addition, it’s helpful if your planner has a background in financial planning with their education and other certifications.
- What services are offered? You need to make sure that your financial adviser can take care of your specific needs. If they don’t offer one or more services that you need, you may want to move onto one who does.
- Is there a specific type of client you specialise in? Some financial planners only have clients that are worth a certain amount, while others specialise in those who are just starting out in life. Ask what the adviser’s ideal client is to get a good feel for if they are right for you.
- Can you show me examples of your work or of a sample financial plan? A good financial adviser will be able to show you a sample of a financial plan. Many will tell you that they’ve earned “x” client “this much” in returns, but what you really want to see is their planning abilities and strategies.
- How do you approach investments? For example, some financial planners are conservative and don’t take many risks, while others are always on the hunt for high, but risky returns.
- How much time do you spend with your clients? Ask on average how much time the adviser spends talking to their clients per week, month, year, etc. If you receive an answer of a very short period of time and you need more than that, you know it’s time to keep searching.
- Who will I be working with? Some advisers work one on one with their clients while others will provide you with a whole team and you end up working with many different planners.
- What sets you apart from other planners and advisers? Ask the adviser about what treatment or services that their clients get that can’t be matched by other advisers.
- How much attention did you receive from the adviser? While this isn’t a question to ask, it’s helpful to observe how the planner acted when taking the time to speak with you. Did they seem rushed? Were they attentive and seem interested in what you had to say?
Now that you know the 10 questions to ask when picking a financial adviser, you are better equipped to find the perfect financial partner who will help you reach your goals.