Are you searching for a financial planner for the first time? Or are you seeking out a new financial planner? If so, you are probably preparing a list of questions that you have for him or her, along with your financial information. Preparing to see a financial planner may seem like an overwhelming process, but it’s important to make sure that when you get to your meeting, you ask a few different questions that are very important. Today we’re going to share with you the 5 questions you should ask your financial planner so that you’re not only prepared but that you also end up with a financial planner who is right for you.
Is the Planner a Member of the FPA?
The Financial Planning Association of Australia has over 12,000 members. In order to become a member, planner have to perform continuing education and meet certain ethical standards that are higher than what the law requires. If your planner is a member of the FPA, you can have the confidence of knowing that they are continuing to learn and grow in their field and that they meet stringent requirements.
Is the Planner Certified?
Outside of being a member of the FPA, it’s also important to ensure that your planner is certified. A CFP is considered to have achieved the highest financial qualification in the world. Out of the 12,000 FPA members, only around 5500 are certified, which shows how CFPs are a cut above the rest.
Is the Firm Your Planner Works with Certified to Offer Advice?
Not only should your financial planner be certified, but the firm they work for should also be licensed through the AFS (Australian Financial Services). The AFS is issued by the Australian Securities and Investments Commission.
How Are Services Charged For?
Not all financial planners charge the same fees or have the same fee structure. However, by law, all financial planners are required to disclose any and all payments and fees that they receive and charge for. For example, administration fees may be charged on top of other types of fees. Either way, all fees have to be disclosed so it’s important to ask about fees and structuring so that you can choose a financial planner that meets your needs.
What is Your Planner Specialised In?
Financial planners often specialise in certain areas. For example, some planners focus entirely on retirement planning, while others specialise in superannuations. If you’re looking to focus on one area of your financial situation, it’s important to make sure to choose a planner who is well versed in what you need.
Now that you know the 5 questions you should be asking your financial planner, take note of them so that you’re prepared at your next meeting and so you can ask the questions that will help you find your perfect planner.