Hiring a financial planner can make a huge difference in your life. As almost everything is tied to finances (career, marriage, retirement etc), you are likely to live a comfortable life when this aspect is well taken care of. This is why getting the right man or woman for this job is very important once you have decided to hire one. You will likely listen to your planner’s suggestions and confide about your financial situations and transactions. When looking for a financial adviser, here are some things to consider.
Trustworthy
A financial planner needs to be, first and foremost, trustworthy. It is important in any relationship and in financial matters it could cost you your life savings. While there’s no foolproof way to gauge your adviser’s trustworthiness, you can check for signs that say otherwise. If claims seem too good to be true, be very cautious.
Qualifications & Experience
Does he have an Australian Financial Services (AFS) license? He needs one when practicing in Australia, for starters. Inquire about his education, training and certifications, too. Also ask for references to see what former clients have to say about your prospective financial planner.
Transparent Fees
Are the fees reasonable and can the adviser break down such charges? Most financial advisers don’t state exact fees until the service is rendered but they can provide estimates. You are on a quest to grow your money so make sure the amount you spend on financial planner services is a lot less than what you can gain.
Tested Approach
Make sure you are comfortable with your adviser’s approach in investing. Some may be too cautious or too aggressive for you. Although you may want to change your strategy from time to time, it’s better to have someone who won’t be too gentle or pushy. Also, work with someone you can easily communicate to.
Transparency
You are new in the investment game so it’s understandable to want to know more about it. If your adviser doesn’t have the time or patience to explain why he came up with such recommendations, don’t waste your time hiring him or her. Consider his attitude and if you feel you are dealing with a know-it-all, move on to the next applicant.