Making the step to speak with a Financial Planner can appear daunting for some. It shouldn’t be. To make it easier, the Financial Advice Association Australia (FAAA) (previously the Financial Planning Association FPA), of which Stephan Independent Advisory is a member and an accredited Professional Practice, have released these tips that can help you.
A CERTIFIED FINANCIAL PLANNER® professional will help you understand your financial situation, develop a strategy and give you guidance on things such as funding your children’s education, helping with budgeting, tax planning, having enough money to live comfortably in your retirement, insurance, estate planning and so on.
It’s all about helping you set your goals and devising a plan to give you the confidence that your financial future is secure. A CERTIFIED FINANCIAL PLANNER® professional can give you the peace of mind and security that comes with being prepared for the future.
What you should expect
A good rapport is essential. Your financial planner is going to know more about you than your accountant or doctor, as he or she will have details of your finances, medical history and family situation. If you can’t establish a good bond early on in your first meeting with a financial planner, keep looking.
Ask these questions:
Do you have ownership links or affiliations with product manufacturers.
Impartiality is impossible where an adviser has links to a product manufacturer. Ownership links create an environment where the adviser resembles, at best, a well-intentioned salesperson.
Do you receive commissions or engage in incentive payments from product manufacturers.
Commissions are payments made by product manufacturers to their distribution network. They create a conflict of interest between advisers and their clients.
Are you a member of CIFAA?
This is the Certified Independent Financial Advisers Association of Australia (CIFAA) and only includes financial advisers who practice without incentives from third parties and without conflicts of being owned by a third party.
Stephan Independent Advisory are proud Independent Financial Advisors and are members of the CIFAA.
What qualifications do you have?
The simplest way to make sure they have the necessary qualifications is to narrow your selection to a CERTIFIED FINANCIAL PLANNER® professional. Do they hold an Australian Financial Services (AFS) License issued by the Australian Securities and Investments Commission (ASIC)?
What is your speciality?
Different Financial Planners have specific expertise in different areas, for example superannuation or retirement planning.
What is your ongoing service commitment?
Financial planning is a relationship business and not just a one-off meeting. Ask plenty of questions about their plans for ongoing, regular reviews and adjustments.
