In Where’s My Money?  I talk about the importance of choosing expert advisers if you want to maximise and secure your financial future. The complexities and changing regulations in the areas of accounting, tax, and financial services (eg super, mortgages) make it very difficult for someone to go it alone and make the right choices. I can get overwhelmed, and I do this stuff for a living!

That’s why I encourage my clients to get expert assistance with the following areas:

• A proactive Accountant
• Financial Adviser
• Mortgage / Finance Broker
• Lawyer

There are several reasons why a Financial Adviser is an important member of your team of experts:

1. Monitor changing market conditions, and keep abreast of latest products

Not only will your circumstances change over time, there will be impacts on different investment options, legislation changes, and new products released that may better suit your needs. It’s an adviser’s job to keep on top of this – and the learning and development requirements to maintain their licence further ensure they are fully informed of any changes or updates.

2. The importance of cash flow

Cash flow is the single most important factor in the development of a successful wealth creation strategy. Surplus cash flow will enable you to generate multiple income streams. An adviser should first work with you to review your current position (income vs expenditure), and identify ways you can free up surplus cash for wealth creation activities – while still giving you the freedom to enjoy life along the way.

3. Develop a strategy to achieve your goals

In order to get to where you want to be, you need a clear plan. A key role of a Financial Adviser is to help you develop a strategy for building wealth. This strategy will take into account your current situation (income and expenses), future expectations (eg if you are planning to have a child or take an overseas holiday). They’ll then help you develop clear goals that the strategy will focus on helping you achieve.

But these strategies shouldn’t be ‘set and forget’ – you want an adviser with a proactive attitude who wants an ongoing relationship, so they can monitor your strategy and ensure it remains on track depending on your changing needs and market conditions.

4. Peace of mind

The ultimate benefit of using a Financial Adviser is the comfort that comes from knowing you’ve got a strategy in place to secure your family’s financial future.

Questions to ask when choosing a Financial Adviser

How do you get paid?

Is it an up-front fee for service, or do they receive a percentage fee of funds invested and / or commissions from investment or superannuation firms that they will place your money with?

If so, how big is that percentage? How long do you charge it for? What would be the size of their fee if you invested $100,000 with them?

Who do they receive commissions from? How much?

Who owns you?

Are they owned by a bank or other financial institution which may influence the investments or products they select for you? Or are they independently owned, meaning they are not aligned to a financial institution (and therefore more likely to offer a range of products)?

Are you licensed?

Always look for a planner who works for a firm that holds an Australian Financial Services (AFS) License issued by the Australian Securities and Investments Commission (ASIC). (In fact, it’s illegal to provide advice without an AFS licence.) And always ask for a copy of their Financial Services Guide (FSG).

Are you a member of the Financial Planning Association (FPA)?

The FPA is Australia’s leading professional community of financial planners. Members of the FPA must meet stricter criteria and higher standards than required by law.

Are you a Certified Financial Planner?

Technically, you can do a two-week course and call yourself a ‘financial planner’. Frightening, really.

Certified Financial Planner (CFP) is the highest qualification you can attain in the Financial Planning industry. As well as extensive study to achieve CFP, there are ongoing professional development training and education requirements to maintain your qualification.

What’s your focus?

Choose an adviser that focuses on the strategy to help you achieve your specific goals, rather than investment ‘salespeople’ who charge a percentage fee structure. I firmly believe that a percentage fee (even fee for service) incentivises advisers to recommend clients invest more money with them when it may not be the most appropriate strategy.

Jay’s Hot Tip: Choosing a Financial Adviser

• Get recommendations from trusted sources (eg friends, or other advisers)
• Meet prospective advisers in person, and ask them these questions
• Focus on strategy
• Get an up-front price for their services
• Make sure you feel comfortable with them before proceeding

Disclaimer: always discuss your personal situation with an expert before making important financial decisions.

In Where’s My Money?  I talk about the importance of choosing expert advisers if you want to maximise and secure your financial future. The complexities and changing regulations in the areas of accounting, tax, and financial services (eg super, mortgages) make it very difficult for someone to go it alone and make the right choices. I can get overwhelmed, and I do this stuff for a living!

That’s why I encourage my clients to get expert assistance with the following areas:

• A proactive Accountant
• Financial Adviser
• Mortgage / Finance Broker
• Lawyer

There are several reasons why a Financial Adviser is an important member of your team of experts:

1. Monitor changing market conditions, and keep abreast of latest products

Not only will your circumstances change over time, there will be impacts on different investment options, legislation changes, and new products released that may better suit your needs. It’s an adviser’s job to keep on top of this – and the learning and development requirements to maintain their licence further ensure they are fully informed of any changes or updates.

2. The importance of cash flow

Cash flow is the single most important factor in the development of a successful wealth creation strategy. Surplus cash flow will enable you to generate multiple income streams. An adviser should first work with you to review your current position (income vs expenditure), and identify ways you can free up surplus cash for wealth creation activities – while still giving you the freedom to enjoy life along the way.

3. Develop a strategy to achieve your goals

In order to get to where you want to be, you need a clear plan. A key role of a Financial Adviser is to help you develop a strategy for building wealth. This strategy will take into account your current situation (income and expenses), future expectations (eg if you are planning to have a child or take an overseas holiday). They’ll then help you develop clear goals that the strategy will focus on helping you achieve.

But these strategies shouldn’t be ‘set and forget’ – you want an adviser with a proactive attitude who wants an ongoing relationship, so they can monitor your strategy and ensure it remains on track depending on your changing needs and market conditions.

4. Peace of mind

The ultimate benefit of using a Financial Adviser is the comfort that comes from knowing you’ve got a strategy in place to secure your family’s financial future.

Questions to ask when choosing a Financial Adviser

How do you get paid?

Is it an up-front fee for service, or do they receive a percentage fee of funds invested and / or commissions from investment or superannuation firms that they will place your money with?

If so, how big is that percentage? How long do you charge it for? What would be the size of their fee if you invested $100,000 with them?

Who do they receive commissions from? How much?

Who owns you?

Are they owned by a bank or other financial institution which may influence the investments or products they select for you? Or are they independently owned, meaning they are not aligned to a financial institution (and therefore more likely to offer a range of products)?

Are you licensed?

Always look for a planner who works for a firm that holds an Australian Financial Services (AFS) License issued by the Australian Securities and Investments Commission (ASIC). (In fact, it’s illegal to provide advice without an AFS licence.) And always ask for a copy of their Financial Services Guide (FSG).

Are you a member of the Financial Planning Association (FPA)?

The FPA is Australia’s leading professional community of financial planners. Members of the FPA must meet stricter criteria and higher standards than required by law.

Are you a Certified Financial Planner?

Technically, you can do a two-week course and call yourself a ‘financial planner’. Frightening, really.

Certified Financial Planner (CFP) is the highest qualification you can attain in the Financial Planning industry. As well as extensive study to achieve CFP, there are ongoing professional development training and education requirements to maintain your qualification.

What’s your focus?

Choose an adviser that focuses on the strategy to help you achieve your specific goals, rather than investment ‘salespeople’ who charge a percentage fee structure. I firmly believe that a percentage fee (even fee for service) incentivises advisers to recommend clients invest more money with them when it may not be the most appropriate strategy.

Jay’s Hot Tip: Choosing a Financial Adviser

• Get recommendations from trusted sources (eg friends, or other advisers)
• Meet prospective advisers in person, and ask them these questions
• Focus on strategy
• Get an up-front price for their services
• Make sure you feel comfortable with them before proceeding

Disclaimer: always discuss your personal situation with an expert before making important financial decisions.