Choosing the right financial adviser

Naturally, you do this when thinking about any external service or product; however, in financial advice, it is wise to dig a little deeper. Money matters are big decisions; unlike a house or a fridge, you can’t see or touch the physical purchase; it is a speculative choice. The more information you can ascertain, the better positioned you are to make the best choice for your circumstances.

Here are some sample questions to help you.

• How will you develop a strategy around my individual goals?
• How do you approach investment and risk?
• How will we communicate, and how often will we meet?
• How are your fees structured?
• What happens when my circumstances or priorities change?
• What other expertise can I access if my needs become more complex?

The answers can tell you a great deal about how an adviser works. But pay attention to something else during that first conversation: the questions they ask you.

Good financial advice begins with understanding the person behind the numbers. Before recommending strategies, an adviser should want to understand your current position, financial goals, priorities and what you want your wealth to enable you to do.

It is very important that you work with an adviser who listens more than they talk. An adviser-client relationship should be long-term, and when communication is heavily one-way from the adviser, the relationship rarely yields the best results for the client.

Keep in mind that your current financial position is only part of the picture. Generally, there are many moving parts, including family, children, and your vision of retirement. There is never a one-size-fits-all solution, and your adviser must be invested in your circumstances.

Consider whether your adviser is genuinely interested in what matters to you. Are they asking thoughtful questions? Are they listening to your concerns? Do they understand your priorities, or does the conversation quickly become focused on products and investments?

The more your adviser understands you, the more personalised and relevant your financial strategy can become.

Trust is a fundamental to a successful adviser relationship. Over time, you’ll discuss your income, assets, debts, family circumstances, concerns about retirement, estate planning and some of the biggest decisions you will make. That requires a relationship in which you feel comfortable being open.

It also means your adviser should be willing to have candid conversations with you. Sometimes good advice involves challenging assumptions, reconsidering plans, or helping you avoid an emotionally driven financial decision. Trust makes those conversations possible. First Financial’s advisers describe strong client relationships as built on trust, communication, and an understanding of what clients are trying to achieve.

Most of us know our professions well. We know what works, and over time, the complexities feel easy to unravel. Financial advice has similarities. For non-financial experts, it can involve complicated strategies, but that doesn’t mean the conversation needs to be complicated.

A good adviser should be able to explain recommendations clearly, including why a particular strategy is appropriate, the potential benefits, the risks involved and how it supports your objectives. You should leave meetings feeling informed and secure, not overwhelmed or confused by financial terminology.
This is particularly important when markets become volatile or your circumstances change. Having an adviser who can provide perspective, explain your options and help you make considered decisions is enormously valuable.

It is also worth noting that the adviser you need today may be helping you with superannuation or investments. In ten years, your priorities could include retirement income, estate planning, aged care or helping the next generation. That is why it is worth considering not only the individual adviser but also the expertise and support available around them.

Choosing an adviser is as much about their qualifications and expertise as it is about their personality. Before committing, always ask, “Can I see myself working with this person for many years?”

The value of a long-term adviser relationship is the understanding that develops over time. Your adviser knows the decisions you have made and the reasons behind them.  When life changes, you are not starting the conversation again with someone new. You have a trusted adviser who understands the bigger picture and can help your strategy evolve with you.

So, when choosing a financial adviser, dig deeper than qualifications and technical expertise. Ask questions, understand their approach and consider how the relationship feels.

The team at First Financial comprises financial experts who help hundreds of Australians retire well and make informed, intelligent financial decisions. We cover everything from retirement and financial advice, investment and wealth management, superannuation and SMSF, insurance, tax, aged care, legal and lending services.

Contact us for holistic, well-rounded financial management strategies.