How To Choose A Financial Adviser - NASDAQ Investing

The following article will help you make the all the important decisions of how to choose a financial adviser you can trust.

There are 3 easy steps for choosing a financial planner in Australia.

Step 1 ? Understand Your Advice Needs

Not all financial advisers provide all types of financial advice. Some advisers are experts in wealth building strategies, other work only in personal protection insurance.

Therefore, you must choose a financial adviser who?s a match for the specific sort of financial advice you need.

The most common areas of specialisation are:

* Personal Protection Advice

* Wealth building and cash-flow management

* Advice for retirees or people looking to retire

* Self-Managed Superannuation Funds

Financial planners with many years of diverse experience may have knowledge in one, many or all of these advice areas. However, most are not experts in every area of advice because different types of advice require knowledge of the different strategies, legislation and loop-holes. That?s why it?s critical to choose a financial adviser who specialises in the type of advice you require.

Step 2 ? 5 Different Way To Choose A Financial Planner

Now that you understand the type of advice you require you can start searching for a financial planner to match your advice needs. Here are five different ways to choose a financial planner.

1. Ask Your Existing Service Providers

2. Ask A Friend

3. Contact Professional Associations

4. Conduct A Specific Search Engine Search

5. Use The Find A Financial Planner Matching Service

Let?s look at each of these options in more detail.

1. Ask Your Professional Service Providers

Your existing accountant, finance broker or general insurance consultant may be able to help you choose a financial planner. Be sure to explain the type of advice you require so they can refer you to a specialist financial planner.

One pitfall with this approach is that many finance companies also own financial products and may refer you to one of their internal planners who may only recommend their internal products. Also be cautious if the referrer will receive a referral fee for connecting you with a financial planner. If this is the case, then the referral may be in their best interest and not yours.

2. Ask A Friend or Family Member

Often you will find that friends or family members in a like situation have received financial advice. If so than ask about their experience, were they satisfied with the advice received?

Keep in mind that not all financial advisers specialise in all types of advice, so if it is insurance advice you are after it may not be sensible to ask a retiree for a referral to see their retirement adviser, and so on.

3. Contact Professional Organisations

There are several professional associations who can assist you to find a financial planner from their member database.

* Association of Independent Financial Advisers

* Australian Financial Advisers Association

* Financial Planning Client Advocate

* Financial Planning Association

Professional organisations like these can only refer you to a financial adviser on their member base.

4. Specific Google Search

Try conducting a specific internet search. Include in your search the advice type and a locations, for example, ?Investment Advice Brisbane?. Keep in mind that there are no third party recommendations with this method, as with all the other methods discussed in this article and this is the biggest risk.

5. Use Our Online Matching Service

Want a trustworthy hassle free way to be matched with a specialist financial adviser? The Find A Financial Planner websites is a free service designed to match you based on the type of advice you require and your location with a financial adviser that best meets your needs.

Another benefit of this matching service is that the financial planners need to pass an accreditation by the Financial Planning Client Advocate (FPCA) before they can be listed, which means you get an extra layer of security.

Step 3 ? Qualify Your Financial Planner

When searching for a financial adviser on FindAFinancialPlanner.com.au you know your adviser is FPCA approved, they have had background checks and an accreditation process to guarantee that they meet our high standards.

If you choose to go it alone, the following are some tips to help you qualify the financial planner you choose.

1. Check They?re Licensed ? In Australia, financial planners must hold, or be employed by a business that holds an Australian Financial Services (AFS) licence.

2. Request A Financial Services Guide (FSG) ? A Financial Service Guide (FSG) outlines the services offered, fees involved and what to do in the unfortunate event of a complaints. Obtaining a copy of the FSG which will help you assess a financial planner.

3. What Are The Fees & How Are They Charged? - Before you proceed with any advice, make sure you understand exactly what the fees are and how they will be charged?

4. Who?s Backing The Advice ? Who?s behind the advice if something goes wrong? Do they hold insurance? Are there any ownership conflicts of interest? A financial planning firm can be owned by or licensed by a financial institutions, fund managers or life insurance company. This can lead to conflicts of interest if the adviser is limited to recommending only that companies products.

The Financial Planning Client Advocate (FPCA) can help you when choosing a financial planner. Simply visit the FPCA?s find a financial adviser website to be matched with a finanical planner based on your location and advice needs.

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Source: http://nasdaqtradingnews.com/2012/02/28/how-to-choose-a-financial-adviser/

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