7 tips for finding the right financial adviser

There’s been a lot of talk in recent weeks over women’s financial security, with one of the biggest news pieces of the month being the release of the ANZ paper on gender equality.

With financial security at the forefront of women’s minds, it’s time to realise that things can be done to better secure your future, and they can be done now.

Ironically, 80 per cent of Australians feel their finances are out of control, yet only two out of 10 actually seek financial advice from an expert! Instead most people handle their personal finances and planning with a DIY approach, but really – like seeing a gym trainer or yoga instructor – seeing a financial adviser is what will set you on a path to personal and financial wellness, and ultimately financial freedom.

I think there’s something about financial advice that people often think is either above them because they’re not ‘rich and famous’, or is unnecessary.

In reality, some form of good quality financial advice would be beneficial to everyone, flying solo on this stuff means missed opportunities. Seeking financial advice can benefit everyone no matter what your salary level or stage of life.

Here are my seven tips to help you find the financial adviser who is right for you.

1. Find a financial adviser you connect with

Ultimately, you’re looking to find a financial adviser you connect with and feel comfortable with, because it’s critical you speak openly and honestly with them. To create a personal financial plan you will need to share your hopes, dreams, plans for the future, as well as the facts about your income, assets and lifestyle. It’s likely you will share more information with your financial adviser than most other people you know, so personal connection is important. It’s a relationship built on trust.

I’d also note that many more women are entering the profession than in days gone by, so if working with a financial adviser of a particular gender is important, you should be able to find someone to fit.

2. Specialist financial advice

Many financial advisers have an area of particular expertise, for example, they may be Self Managed Super Fund (SMSF) experts, or specialise in life insurance, families or retirement income planning. Some work with younger people who are saving for a home, specific goal or saving for children’s education. For example, my company, Wealth Enhancers, works exclusively with high-performing Gen Y who want to be the best version of themselves they can be, we also include life coaching as part of our service as we have found that this gets the best results when it comes to reaching one’s goals.

There are also financial advisers who specialise in working with particular occupation groups such as professionals, teachers or engineers, as well as those who are experts in the intricacies of public sector superannuation schemes. Basically, know what you are looking for and ensure that the financial adviser you are considering, has the skills and experience to help you.

3. Referral from a friend

Referrals from friends can be very valuable and give you a sense of comfort knowing that someone else in your circle has had a positive experience with a particular adviser. Given people rarely speak openly with friends about money, it’s likely to be something you’d have to raise and ask about. Receiving a referral will arm you with some insights into what to expect, so you’re not flying blind.

4. Try before you buy – free first meeting

Many financial advisers offer a free first meeting that gives potential clients an opportunity to meet the adviser face-to-face. The introductory meeting is a good time to ask questions about what to expect, how many meetings you’ll need to develop the financial plan, what information you will need, how they charge for their services as well as any specific concerns or interests you may have such as investing in shares, SMSF, insurance and the list goes on.

Some advisers will post or email a questionnaire prior to the first meeting so you can come prepared. They must also provide you with a Financial Services Guide (FSG) to review. The FSG is a usually a pretty dry document, however it outlines the adviser’s qualifications and the products and services they are authorised to provide advice on.

It’s ok to keep looking if this isn’t the right fit.

5. Do your research

A good way to learn more about a financial adviser is to look at their company website, have a look at their LinkedIn profile and search for them on Facebook, Instagram, Twitter or any of the other social media platforms out there. Many financial advisers are very active on social media including on sites such as Your Best Interests (YBI) so this may add another dimension to your research. You can get to know them a little from the sidelines, before making the call to have a meeting.

6. Ask the right questions

There’s so many questions that you should ask a financial adviser – both before you meet with them and early on in your relationship. Asking the right questions will help make sure they’re the right adviser for you. Websites such as the YBI site has great blogs and articles to help you with these kinds of questions. Recently YBI adviser, Anne Graham wrote a great article on ‘Is your financial planner right for you? Questions to ask yourself when seeing your planner’.

7. Choose an AFA member

Ensure the financial adviser you choose is a member of a professional body whose members commit to a Code of Conduct that governs their professional practice. The Association of Financial Advisers is Australia’s oldest membership organisation of financial advice professionals.

Sarah Riegelhuth is one of the financial advisers featured in the Association of Financial Advisers Your Best Interests campaign. Sarah is also the Co-founder of Wealth Enhancers and the League of Extraordinary Women, board member, writer, promoter of female entrepreneurs and a speaker.

The Association of Financial Advisers’ new consumer website and TV series Your Best Interests, which launched in June, will help Australians stop missing out on financial opportunities that could help better secure their future.

This article was originally published on Women’s Agenda.