A financial adviser is there to help you make financial decisions and plan for your future. Whether it’s planning your savings or helping you once you’ve retired from working, it’s best for your plan to be personalised for you. Using someone with specialist knowledge in the area is a great first step.
Selecting your financial adviser
It’s important to work out what you want to get from the advice. An adviser should take the time to discuss what’s important to you and ask about your short and long term goals before they make any recommendations. And importantly too, your adviser and you need to be able to work well together. You both need to be comfortable, have a rapport and develop trust with each other for the relationship to be mutually beneficial.
When first meeting the adviser, there are a few things you should aim to learn:
- how much they will cost
- what their qualifications are
- what payment options are available for their services
- how often you’ll get their advice
- how they’ll consult with you on decisions
- if there are any exit fees if you decide you no longer need their services.
You’ll likely be asked to give a brief overview of your financial situation on the first consultation. Following this, you’ll need to prepare a host of information so that you can make the most of the advice you’re getting. This will likely include personal information (like your age and relationship status), your assets, debts, income, expenses and your insurance policies
How to set (and achieve) your goals
Having provided your information, the next step is to figure out some realistic financial goals you want to achieve.
Your goals will be dependent on where you’re at in your financial journey. If you’re just getting started, this might involve creating an investment strategy to make the most of your savings – or figuring out how to best save for a house while maintaining a comfortable lifestyle, or what your insurance needs might be. For others, your focus might be on maximising the return from your long-standing investments or planning for retirement.
Your financial adviser will be able to provide you with options catering to different risk levels. You can use these to inform your decision, then begin working towards a healthier financial future.
Once you’ve worked out an approach, they’ll then provide you with a financial plan that is known as a Statement of Advice (SOA).
What’s in a SOA?
A good SOA should:
- address your financial goals
- accurately list your financial details
- explain how you will reach your financial goals through advice
- be at a level of risk that suits you
- outline all the fees you pay and what advice is provided for them
- explain how your finances should be managed
- describe any products that’ll help you reach your goals.
You and your adviser should review your goals regularly and assess if you’re on track. Ideally, your life shouldn’t be disrupted by the financial decisions that have been put in place as part of your financial plan.
If you need to find an adviser in Australia, visit the Financial Advice Association and in New Zealand, you can visit the Financial Markets Authority.
Preparation of this document and the opinions expressed in it may involve material elements of subjective judgement and analysis. Unless specifically stated otherwise: they are current on the date of this document and are subject to change without notice.
Important information
Resolution Life Australasia Limited (Resolution Life) ABN 84 079 300 379, AFSL No. 233671 in Australia and NZ Company No. 281363 are the issuer of this article in Australia and New Zealand.
Any advice in this article is provided by Resolution Life and is general advice and does not take into account your objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the relevant product disclosure statement and/or policy document, available from Resolution Life in Australia at resolutionlife.com.au or by calling 133 731, or in New Zealand at resolutionlife.co.nz or by calling 0800 808 267, before making a decision about the product.
Resolution Life is part of the Resolution Life Group and can be contacted via Contact us - Resolution Life (Australia) or Contact us - Resolution Life (New Zealand).
