The right type of financial advice can be priceless.
Choosing a financial advisor can help you to secure a stable financial future, lead to an impressive investment portfolio or even help you break into the market for the first time.
But in contrast, failing to find the right financial advisor for your needs can be extremely costly.
With more and more people claiming to operate as expert financial advisors, it’s becoming increasingly difficult to determine just where to find sound financial advice. In fact, since November 2009, Australia has experienced a 41 percent increase in the number of operational financial advisors.
It has never been more important to choose your financial advisor wisely.
To take the guessing work out of choosing the right one, Inovayt Wealth’s Financial Advisor, Tony Stewart has compiled his top tips to keep in mind when making your selection:
Check the Financial Advisers Register
With past behavior so often the key indicator towards future performance, the government’s Financial Advisers Register is the perfect place to start your research. Taking the time to do this search will make sure you don’t end up taking advice from just anyone– it’s imperative that your financial advisor is the real deal.
Simply perform a search for your financial advisor on the Australia Securities and Investment Commission (ASIC) Financial Advisers Register. The database provides you with each adviser’s qualifications, experience, and employment history and will even tell you whether the adviser has been the subject of disciplinary action by ASIC.
Avoid the bank’s financial advisors
The Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry is the topic on everyone’s lips at the moment. This Royal Commission has uncovered serious conflicts of interest in the financial advice industry which has led to poor advice.
The majority of the issues identified have been with financial advisors employed by the top four banks. The conflict of Interest occurs as these financial advisors are strongly encouraged by their employers to recommend their bank’s superannuation, insurance, and investment products. The end outcome Is that the bank makes money from the financial advice given as well as from the Investment products recommended, however, the Royal Commission has shown that this advice Is sometimes not In the best Interests of the client.
If you’re looking for a financial advisor who will offer impartial advice which is best suited to your individual financial needs, look for an expert who isn’t linked to a bank.
Make a face-to-face appointment
Trusting Google as your consultant or a phone call is a risk that’s not worth taking when it comes to the weighty decision of choosing the right advisor.
Selecting an expert to help you grow and protect your wealth is an investment in a major decision – and whether you get your choice right or wrong will have a long-lasting impact on your future financial state.
Keep in mind that a quality financial advisor will listen to your goals, instead of lecturing you on their own recommendations.
Scheduling the time to meet with a prospective financial advisor will provide you with immediate clarity on whether the partnership is a perfect match, as well as enough time to discuss your finances in detail to achieve the best outcome from the partnership.
You may wish to consider talking to a couple of different financial advisers to compare and contrast their approach, knowledge and fee structure. Most financial advisors will provide a free Initial Consultation.
Our financial advisors at Inovayt Wealth specialise in superannuation, retirement, insurance, investment strategies, and budget and finance structures and are available to meet with you in person to discuss your options.