Hiring the right financial planner in Sydney is vital

If you have followed some tips to finding a good financial planner/adviser, and have identified a few that you feel might be a good match, it is time to make a few phone calls or set up meetings so that you can interview them and ask some important questions.

Just as you would never make an important financial decision such as purchasing a home without inspecting the property, you should not hire a financial planner/adviser simply because they are local or their ad looks good. Not all planners and advisors have the same qualifications or experience, so before deciding whom to work with, here are 5 questions to ask when hiring a financial planner/adviser.

1. What services do you offer and how often?

Even if a trusted friend has recommended a financial planner/adviser, it is important to remember that they do not all offer the same services, and what might work for your friend, may not work for you. You may be interested in creating a savings plan or looking for tax preparation and advice. Or maybe you want a local financial planner/adviser who can help you managed a stock portfolio, or one that will help you create a manageable budget and eliminate your debts.

Whatever your needs are, make sure that you choose a planner who can meet all of them. You are also within your rights to ask what he or she will do to help implement, maintain, and update any financial plan that you create together.

2. What type of qualifications do you have?

It is important to check that any potential financial planner/adviser that you might use has the right experience and qualifications to suit your needs. Get details about any certificates and diplomas that they may have, and ensure that they hold an Australian Financial Services Licence (AFSL), and that the licence covers the services you are looking for.

3. Who are some of your other clients and can I talk to some?

Asking a potential planner/adviser to put you in touch with some of his or her clients is a great way to get references and recommendations. Try to talk to people who use similar services to those you are seeking. Ask them if they are happy with their adviser, how often they communicate and in what ways, whether he or she responds quickly to questions, and anything else you may feel is important.

4. What is your performance record?

Request proof from any prospective planner or adviser that he or she has performed adequately for clients in the past. Ask if their books are regularly audited, and if so by whom. Then talk to the auditor if possible and obtain their feedback. You can also do some web searches on the planner to see if they have been involved in any disciplinary proceedings, ethics violations, or been involved in any legal proceedings.

5. How do I pay you?

The fee structure can vary greatly between different financial planners/advisers. However, in most cases you pay either a flat fee per month or an hourly rate. Some may charge a percentage of the assets they manage, which is typically no more than 2%. Others may charge a commission on financial products and securities that are purchased and sold.

Before you commit to a planner or adviser, you should ensure that their rates, fee structure, and commission schedule are clearly defined so that you are not surprised later on.

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