We all know more or less about financial planners and what they do. But, how do we know if the advices from one of them are going to really benefit the client i.e. you? Here are some tips on choosing the right financial adviser who can guide you properly on saving, investing and also can make your money grow.
A financial adviser is nothing if he/she can’t help you tackle a specific financial goal. The goal can be anything; from purchasing a property, acquiring assets to even paying off mortgages and loans. As you ready yourself towards that specific goal or goals, put your emphasize on a financial adviser who specializes in the field of your interest.
Financial advisers are not stockbrokers! Neither are they accountants; nor insurance agents. Do not be lured into things which will complicate things further.
Buying a life insurance policy or lowering your tax bill is fine as long as you got sufficient money to put behind them. A financial adviser tells you how to save the money that you need to go after all those things, for both of the abovementioned procedures involve some sort of investment and if your financial position is weak, you may end up as a defaulter and travel further downwards the financial vortex. A financial advisor will help you escape such downward spirals.
So how do you know if the person you chose can really help you out with your finances? Simple, just watch out for just three letters following their respective names! CFP or certified financial planner is held as the most significant credential in the field; it signifies he or she has been through acid tests administered by the Certified Tax Accountant Sydney Board of Standards and regularly monitored by a governing body.
The best thing about choosing a CFP is you remain confident that they are up to date with the current finance-related laws, for it is must for them to continue education on financial matters and ethics. Else, maintaining their designation is impossible.
However, despite the CFP credential being a good sign, there’s difference between writing an exam and applying the obtained knowledge in real life. Though it’s like one in a million, but sometimes we do come across certified financial planners who come up short on skills and therefore; credibility. So, a bit of a hose sense goes a long way.
That’s to say, never forget to check the credentials or client testimonials. Find out how they charge and whether the fees are to be paid upfront or after the job is done. Business Advice Services Sydney either charge by commissions or by hourly or flat rates; it’s always better to avoid financial planners who charge you with commissions from your total fund. You certainly do not want to be steered towards particular products to make them benefit. Paying a flat fee is always better, if you do not want to pay by the hours.