Financial planners

If you've got a financial planner, how did you find them?
Was it a recommendation or a random yellow pages search?

Any other good advice on finding and using a financial planner?

Thx

Hi Nitro,

As I am a financial planner I can't really answer the first question.

As a member of the Financial Planning Association I would suggest that make sure that your financial planner is an FPA member, as this means that they have certain rules to follow as members.

I also prefer larger licensees, purely for the fact that they have deeper pockets if there are issues. Smaller licensees will close shop and clients may be out of pocket, larger licensees will stay open and also have reputations to uphold so they may right any wrongs.

You can also ask a prospective financial planner, what they specialise in, how they charge for work, how long they have been a planner for and what they were doing before being a financial planner (this is an interesting question to ask ). Also why they chose to work for their licensee over other financial planning licensees, how long their licensee has been around for and also how many client's they look after (the less the better for you, you don't want them to spread themselves to thin to be able to service you properly).

I hope this helps Nitro.

Cheers,

Dan

Nitro

Even the banks have FP's but they will steer you towards their own products.
I much prefer FP's who have an open mind to investing and can suggest a variety of structures and products.

Often we don't like to talk about our situation in public but if it was me I would get ideas from FP's, my accountant, friends etc but before finalising my decision I'd start asking questions in an investment forum such as this one or somersoft etc.

A lot of people who socialise in such forums are very experienced professionals
and can be of great help.
Additionaly, considering the advise some people get from some FP's I often wonder if they could get better advise in forums like this one and free.

Cheers

Firstly i would ask your accountant if they recommend anyone in particular.

Secondly when you see the planner tell them you were referred by x client of their's. The point of telling them this is very important, it shows that you are willing to talk to other people about your experience, which means referrals, which means he will try to do a good job.

Thirdly, obviously check they are with the FPA.

Fourthly, I would check how the fees are charged. Are they fee-for-service or commission based.

Fifthly, when you ring them up ask them if there is any charge for the first interview. Most FP's shouldn't charge you for the first meeting and you have no obligation if you think they can't help to pay a cent!!

Sixthly, stay away from Banks, they are known product floggers, some big companies are exactly the same.

Seventhly, if the FP recommends you use any product, make sure you ask why they recommended that product. Be careful that alot of people get kickbacks that are not specifically addressed and that is the reason they recommend certain products.

Its important that you feel comfortable with the FP. Having a first meeting, which should be free, is the best way to do it. If you don't like them or don't gel you should be able to walk away commitment free.

It's funny, the day after I posted this we had a guy come and speak to us at work.
The company I work for has assessed the work force and realised that the average age is 45+, so they're looking at ways to help the company and the employees cope with planning for the future.
The presentation was manly about super and how to make tax effective gains there.
We got a chance to quiz him a bit after wards.

I think the main conclusion I've come to is that you have to be comfortable with the person and why they are going to advise you in a certain direction. And that they should be FPA registered.
The fees vs commission and small company vs big company/bank is a personal preference (mainly what you are most comfortable with i.e if they earn a commission but you think you'll be better off the go with that).

Prehaps someone isn't interested in spending hours in forums like this. They want a plan, and leave it to a 'expert' to manage for them.

Learning often entails mistakes, and costly mistakes. So getting 'free' advise is often not the 'best' advise for everyone. Plus having someone to run things by first before making a decision is also worth the price of gold.

Most people don't have the emotion either to make proper decisions.

A financial planner is just as important as having a good doctor, tax accountant or legal adviser..

I would say that 'free' advice is not the best advice ever (unless it's coming from someone you are absolutely sure knows their stuff). Most of the 'advice' given on forums is, although well intentioned, questionable. Especially from some people who act like they know what they are talking about but don't really. A lot of armchair experts frequent the internet and they are all the more bold in their 'advice' because no one knows who they are. They can say whatever the hell they want without ramifications.

Also it kind of worries me that there are quite a lot of people on here who are looking for and willing to take on 'advice' from what essentially amounts to anonymous nick names on a public internet forum. You might as well ask random people in the street for advice.

Be careful who you listen to - on forums or in person - , because it can end up costing you a lot of money.

Mark

I have recently started DFS(financial planning) from Kaplan Uni., and i have got previous experiance from india, now i am looking for entry level job in financial Industry, can any one guide me how to start and to whom i approch.? I have sound knowledge of Equity, future & options, commodites, managed funds, ETF.

SEEK - Australia's no. 1 jobs, employment, career and recruitment site

That's where I got my foot in the door.

Mark

Hi Nige

Second the opinions already posted to ensure they're fully licensed, have a good track record and experience. Personal referrals are often the best, though your individual circumstances will dictate who it is that can assist you specifically.