Financial Planning - 1st Meeting

As part of my contract, i get a free initial session with a financial planner. I would assume it goes for about an hour.

I really want to make the most of this session, so would like to know from people's experiences as to what normally is covered in a first session with a financial planner.

....and the things I should ask or enquire about to make the most of this session.

Thanks,.

In my experience it is the FP doing the questioning during this "free" consult. They then work out if you will be a worthwhile client and whether they will spend more time with you ...

Maybe I am jaded.

Ciao,

I'd be trying to find out what they are trying to sell you first. Generally they try and get a basic idea of what sort of level of investing you will be doing and your basic assets then they will give you the spin of the great and wonderful things they will do for you.

The FP I saw basically said not to both - and wanted me to give him all my money to invest in managed funds. Then charged me $1000 to print off some reports from a company that reviews managed funds and fill out a compound interest formula in excel.

the financial planner will complete a 'risk profile' which should ask you questions to work out your tollerance toward volatility, your view on investing, your investing term and goals.

From this they develop a statement of advise which they should recommend funds based on this risk profile. this will be the next meeting along with projected outcomes and set a 6 monthly review date with you.

I would also negotiate fee's they will charge you during the first meeting.

They may also ask for all your financial details......

So you may wish to go prepared.

Assets: House valuations, Car, Value of household content insurance....
Mortgages, repayments, rents, etc.
MFs, Shares, etc.
Superannuation (This is the one that caught me out)
Life insurance, income insurance ....
etc.

They may claim they cannot give you a final report because they do not have a `full' picture of where you are at present.

Tailcat

Work out what it is that you want from:
- your assets (what do you want to invest in)
- your goals (what do you want to achieve and by when, just remember to be realistic)

Ask them:
- How are you going to help me achieve my goals and build my assets?
- Why are you recommending the structure you do?
- How is your structure pertinent to my goals?
- Are you financially independent? (if not, then: Are you working towards financial independence and how long have you got to go? Can you give me a rough idea of your own strategies, without going into personal details)

If you don't get the answers that you want (and I don't mean them just telling you what you want to hear), then walk out and don't look back. I did this many times before I found the planner I wanted.

I would tend to not try and negotiate fees, you're not buying a second hand car. A good financial planner (which is what you want) is worth the fees they charge. If you don't want to pay the fees - don't go to the planner.

Mark

Mark, how would you identify a good financial planner? Don't most just sell managed funds?

This is why I personally think its better to do it yourself, as I don't think any planner would have a silver bullet knowing which sectors will out perform and hence tilt your investment that way.

I like though to ask what have they achieved financially.. as if they drive a bomb, then you have to question their ability to lead you if they can't lead themselves.

Maybe they drive a bomb because they are putting all their money into funds/properties

Would like to go a little further on this and discuss the post-interview portion of advisers (not just f.a.'s, but mortgage brokers, accountants, solicitors, rea's etc). One of the things I personally find most frustrating as a paraplanner is when clients don't ask questions or communicate their concerns.

This is probably the most vital area of your relationships with your advisers. You as the client MUST be pro-active in keeping in regular contact with your advisers. It's not enough for you as a client to sit back and wait for them to contact you. At best, this is usually going to be once a year for your annual review or at tax time or whatever.

The phrase 'the squeeky wheel gets the grease' is pertinent here. In a practice with 200+ clients, if you have people who ring up every now and again (say, once every one or two months) to see how things are going and whatever or they ring you when they have some questions they'd like addressed and on the other side you have people who never ring, guess who gets the most attention?

So if you want to get the most out of your relationship with your advisers, go to them, rather than waiting for them to come to you.

Mark