What is a good financial adviser?

· A good financial adviser is together with you to find out your wishes, set and create both short-term and long-term strategies for your financial objectives to help you reach the final accomplishment.

· Every financial adviser must have an Australian financial services (AFS) license

1) List out your needs and your plans from financial advice

Before seeking financial advice from the professionals, what you need to do is to list what you want to get from it. It depends on your lifestyle, your budget, and what you want from the final achievement.

The financial advice might include guidance on budgeting, investing (stock or real estate), superannuation, retirement planning, estate planning, insurance, and taxation. Which can better assist you in financial decision makings and preparation for the future.

2) Select the most suitable financial advice for you.

There are 2 types of financial advice: General financial advice and personal financial advice.

· General financial advice:

This type of advice does not take into account your personal situation or goals, or how it might affect you personally.

E.g. If you receive stock recommendations online, chances are, you could be receiving general advice.

à Note: the stock advice does not consider how it affects you personally as they only provide based on their opinion on shares. And the general advice always comes with a disclaimer that outlines the type of advice that is being given.

· Personal financial advice:

This advice takes into consideration your financial needs and objectives and is in your best interests. It can include:

o Simple, single-issue advice — Dealing one on one with financial difficulties, for example, how much to contribute to your super, or what to do if you inherit shares.

o Comprehensive financial advice — Assist to create a financial strategy to optimize and achieve your financial objectives. This includes things like savings, investments, insurance, and super and retirement planning.

o Ongoing advice — Regular monitoring and review of your financial plan and affairs. Meaning that you can call, email, and keep in touch with professional advisors regularly to have the right advice and make the best decisions.


3) Find a financial adviser

To find out more information about the Financial Advisers, please go through the following professional associations:

· Financial Planning Association

· Association of Financial Advisers

Check the Financial Services Guide

Based on their Financial Services Guide (FSG), you can easily see what financial advisers are offering. It should be on their website, or you can ask them for a copy.

The Financial Services Guide shows:

· The services they offer

· How they charge (see financial advice costs)

· Who owns the company

· Any links to product providers

· their AFS license number

4) Find a financial adviser

Usually, there will be no charge on your first meeting with the financial advisers. The best way is to meet and compare a few different advisers

When you meet an adviser, ask them the following questions:

· their qualifications, main client base, and specialty areas

· what fees you will pay, how often and what you'll get in return

· what their managing strategies

· how often per week or month you'll meet

· what information you'll receive and how often

· how they'll consult you on decisions

· how they'll monitor and manage your investments

· what commissions or incentives they receive fro

m financial products, and how they'll choose products to recommend to you

· who'll look after your account when they're away

· how they'll deal with complaints (see problems with a financial adviser to learn about the complaints process)

· how to end your agreement with them (including any penalties or notice periods)

A good adviser will get to know you, keep you informed, and help you achieve your goals. They'll also discuss how much risk you're comfortable with.


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