Calling in the experts – when you need a financial adviser

When you want to build a home, you engage an architect to do the designs. If something goes wrong with the plumbing, you call in the in tradies.

It’s the same for financial advice. While some people feel comfortable handling their own investments, many do not.

The reality is that many people are out of their depth in planning their finances and need the advice of a professional to help get them on track.

• They don’t know enough about the disciplines of budgeting.
• They have no real idea of how much they actually spend and where their money is going.
• And when it comes to investing or saving, they have little knowledge of the range of products out there and how they are regulated and taxed.

The investment landscape is complex and challenging even for experienced and engaged individual investors and planning for retirement can be a minefield. Many people feel the need to engage financial advice as retirement age comes into view.

They feel they haven’t done enough to save for retirement and are dissatisfied with their progress towards investment goals.

Some need financial advice because of life-changing events, others simply lack the time required to be as vigilant as they need to be.

In recent years, the concept of coaching and mentoring has become popular in many aspects of life. People have coaches for their businesses and their careers. They seek out experienced mentors to guide them along their way.

In the same way, financial advisers can be seen as money coaches. They are there to help guide people with goal setting and finance strategy.

They are there as a sounding board to give people feedback on how they can get to where they want to be on their financial journey and achieve the lifestyle they seek.

The financial advice profession has also gone through significant changes in Australia. With the advent in 2013 of the Future of Financial Advice (FOFA) reforms, the world of advice is now more transparent than ever before.

The FOFA reforms were designed to ensure the integrity of the financial advice industry and deliver a system offering affordable and accessible financial advice to the Australian community.

Like other partners in life, your adviser can be a great support in uncertain times and is there to celebrate the highs with you. In choosing the right adviser, here are a few key steps.

Step 1:

Decide what you want to achieve. Make some notes on your future goals and what’s important to you right now.

Step 2:

Think about what you are looking for in an adviser, in terms of their location, the type of advice they offer, their qualifications, professional association membership and experience. Then do some research. Look at how they charge – check out the process and their fee schedule – for more, see question 3 on the next page. Review their financial services guide, which will tell you the services they offer and the areas in which they are qualified to provide advice. Next, verify their information by checking on the ASIC Financial Adviser Register at moneysmart.gov.au.

Step 3:

Meet with advisers. When making a decision about any professional you’ll engage with, it’s important to meet with them to confirm you’re a good match. This is one of the most important professional relationships you will have and ensuring you fit together is critical. Don’t rush this part of the process. See as many advisers as it takes for you to find one that you want to work with. Remember, it’s not just the financial adviser you’ll be dealing with, it’s their team as well.