You’ll need to be clear about your options and comfortable with your decisions, but how do you know when to ask for help, where to get it and whether to trust it?

Everyone’s financial situation is different and it’s important to decide what’s right for you. This is where you need to decide whether to take George’s advice over the fence, or your friend’s experience from work as a given to what will happen to you. Or you can choose to look at your options for paying for a professional financial planner to look at your scenario.

There will be times when it pays to get professional financial advice. You may have saved up or received a windfall that makes investing an option, or you might be thinking about putting a retirement savings plan into action. If you’re nearing retirement, it can be even more important to make sure your finances are in the best possible shape so you’ve got a better chance of having the kind of retirement you’d like.

You go to a professional when you are sick or not sure of what is wrong with you, then why wouldn’t you go to a professional to get your money healthy? It’s like an old cliché, but it’s true! So many people seek advice from friends and family, who, in many cases, have gone through major issues to get their money where it is today! Save yourself a lot of time and effort, and at least pick up the phone and call your nearest financial planner just to have a chat.

Generally, it wont cost anything to just sit down and talk to someone, so what have you got to lose? But how do you choose which financial planner will suit you? This article will hopefully help you.

When we decided to change our accountant again a few years ago, I was determined not to make the same mistake as the last accountants had put us through. We were going through a different transition in the business and personally, with more children and an expanding business, we needed more technical advice than what we were receiving. So, basically, we outgrew our old accountant. They were unable to give us the most efficient tax advice that we needed.

So, we set out to talk to friends and family (not about our circumstance, but about their experiences) about their accountant. The best possible way to get an idea of a service, whether it’s an accountant, or a gardener, is to ask friends first, and then interview them yourself!

So, we found someone who was strongly recommended by someone in a similar situation to us (always a good thing to compare apples with apples) and interviewed them. Within the first 20 minutes, I knew these guys were the ones for us. Young, vibrant, smart and freely gave simple advice on direction and asked many questions. That showed me they were interested in ME, not their own bottom line.

I found that I related well to them, and felt incredibly comfortable. I also asked many questions, such as the obvious like fees and experience, which all answers were returned with confidence and satisfied my criteria.

The same goes for financial planners. I am a financial planner, but I specialise in personal insurance. However, I know how the industry works. I’ll cover off more about that in the next post tomorrow.

1)    You need to feel comfortable.
2)    You need to ask questions that are answered, not talked around
3)    Do they give you an idea of what you get for your fees? (reviews & resources available)
4)    Do they offer advice outside of managed funds? (This will also depend on how much money you have.
5)    Do they charge commission and/or fee for service? (A choice is good if you don’t want to fork out large amounts upfront)
6)    Do they have a network of advisers in all the areas you are interested in? (Eg; shares, property, etc)
7)    Ask for testimonials

If they tick all of these boxes, then you should be on your way to developing a strong relationship with your financial planner.

But how much do you pay for a financial planner?
It all depends on how much work they are going to do and how much you are willing to accept for the work they are going to do. If there is a lot of messing around with super funds and tax advice, then the cost could be as much as 3-4% of your total investment. However, if you have funds over $150,000 - $200,000, then I wouldn’t pay that much. Try to keep the fees around 3% if possible. This is always negotiable with your planner.

I firmly believe everyone should at least talk to an adviser or planner just to see what they can do. One good thing is they can set up a plan for you to follow. If you don’t already have one, this is a start.

PD