Choosing a Financial Planner

How Families Can Find the Right Money Planning Adviser

Jun 30, 2009 Wei Yin Wong

When choosing a financial planner, get referrals from friends, read up on financial planning, shortlist only licensed planners and ask for a Financial Service Guide.

The best way for households to achieve financial goals is through the help of a financial planner. However, choosing the right financial adviser may be rather tricky. Here are some tips to help families find the right money planning adviser.

Get Referrals from Friends

According to data from the Australian Financial Planning Association (FPA) Consumer Attitudes to Financial Planning Study conducted in 2007, more than half the people who used a financial planner were referred by a friend. As such, it’s wise to get referrals from friends, particularly those with similar financial circumstances and goals. Ask friends how they have benefited from the services of their financial planners. Shortlist a few names and do a background search on them.

Read About Financial Planning

Families keen on engaging a financial planner should empower themselves with some basic knowledge on money planning. The FPA, for instance, provides free publications such as Money Well Spent and Getting Advice that can be downloaded from its website. Other helpful organizations are the Australian Securities and Investment Commission and the Financial Industry Complaints Services.

Choose Only Licensed and Registered Financial Planners

Ideally, engage only a licensed and registered financial planner. In Australia, the FPA is the foremost financial planning body. Therefore it’s sensible to find a planner associated with FPA. To know whether a financial planning professional is an FPA member, go to the “Find a Planner” service page on the FPA website. It’s the easiest and fastest way to find contact details of more than 5,500 Certified Financial Planners (CPF) across Australia.

Ask for a Financial Service Guide

After shortlisting a few names, make contact with them. Ask each prospective financial planner a copy of his Financial Service Guide (FSG), which explains the nature of the financial services offered, the fees charged and the proposed relationship between planner and client. A financial adviser is required by law to provide a copy of this document before providing any financial service. Never use a financial planning firm that doesn’t have an FSG.

Be Prepared for Initial Appointment With Financial Adviser

Many initial appointments with a financial planner are non-obligatory and free. However, do confirm this in advance to avoid nasty surprises. Prepare the meeting by providing some relevant financial details about the family income, insurance, debts, assets, investments, tax return details and financial expectations. Ask lots of questions about the financial planning services too. Choose a financial planner who is open, well informed and happy to answer any questions asked.

It’s important to choose the right family financial planner. Picking the wrong planner for the job can be very costly. Before choosing an adviser, get referrals from friends, read as much as possible on financial planning, shortlist only licensed financial professionals, ask for a Financial Service Guide and be prepared for the initial appointment with a planner.

Found this article useful? Read also Questions for a Prospective Financial Planner, Understanding Financial Planning and Benefits of Financial Planning.

The copyright of the article Choosing a Financial Planner in Family Finances is owned by Wei Yin Wong. Permission to republish Choosing a Financial Planner in print or online must be granted by the author in writing.

Choose the Right Financial Planner