Once you have decided that you want a financial planner, finding a good one is the next step.

Like your personal financial situation, finding the right financial planner is a very subjective process – you need to find the best financial planner for you.

While you need to ensure your financial planner has a personality that you can ‘work with’, you need to remember you are looking for a fully qualified, licensed, expert professional that has your future interests and financial longevity at the forefront. You are not looking for a new best friend, nor someone to get horse tips for the next race at Flemington.

As such, you need to look through the veneer, peel back the blinds and ensure you use due diligence in the selection process of your financial planner – not just pick the first one that comes along.

Personal recommendations

Personal recommendations are always a great place to start, you may have a family member or friend who knows or uses a financial planner. However, this does not mean the recommendation is the ‘best fit’ for you.

A financial planner needs to be your financial coach, build your financial roadmap, and ensure they have your best interest at heart.

A personal recommendation may go a long way to achieving this goal, and it certainly navigates a lot of the time and effort that a full-scale search may entail. However, we always recommend getting at least one second opinion, meeting at least one other financial planner, if nothing else, so you can see who realises the best potential of your personal and financial goals.

Forums and Google Searches

A little bit of information is a dangerous thing, and nowhere more so than on the web. From uninformed forums, blogs and articles written by content writers with no experience in finance, no qualifications, and some with an axe to grind, many often looking to create ‘click bait’, or generate leads.

Although initial information searches are a great place to start, nothing counts more than meeting face-to-face, asking some tough questions of your ‘soon to be’ planner and ensuring things are online. Just as you should not diagnose your illness using ‘Dr. Google’, don’t put your financial future in the hands of a bunch of often misinformed - and ‘often angry’ - keyboard warriors’.

Professional recommendations

You may already have professional services that you know, use and trust. These could include accountants, lawyers, marketing, advisors etc. These professional services would often work with people within the financial sector, including financial planners.

It should always be noted that you, as the client and as the person whose financial future is at stake, should always conduct due diligence, ensuring that you are happy with your potential financial planner, not moving forward with engagement to appease your referrer.

Professional registers

In the wake of the 2019 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, it was clear that governance of the industry, rouge financial services operators and exorbitant fees – in some instances for no service, and in other examples for the recommendation of products & services that were overpriced, sometimes leading to losses, or total losses of investors’ funds – were rife.

Although it was a vital step to ‘clean up’ the financial industry, the industry was tarnished with a broad brush, and even the very best operators within the industry were subjected to unfair assumptions & vilifications.

With the Financial Planners Association of Australia (FPA) as the industry body that works with financial planners to ensure they are compliant, regulated, upskilled and promoting industry best practice, in conjunction with the Australian Governments’ Smart Money website, there are lists or registers of financial planners that are available for review and contact.

The Smart Money Financial Advisors Register and the FPA’s Find a Financial Planner webpage provide some solace that you are protected by standards and governance levels that are required to be passed and upheld by the operators within the industry.

Although you are taking on financial advice and making the ultimate decisions yourself, if you choose an FPA planner, you at least know there is recourse and an industry body that governs the transactions and activities of their members.

However, ultimately, the advice that you take on financial matters is just that, and things can change. As mentioned, it is just important that you find a trusted planner that is ideally local to your home or office, that you have been referred to or has provided testimonials from current clients and finally is a member of the FPA or on the Smart Money register.

Transparency is the key in all your financial matters, just ask yourself…is this person looking after my best interests and can I see myself meeting with them in 10, 20 or even 30 years? If so, then you are on the right track.

A financial planner can provide you with meaningful advice, realistic advice about what your financial future could look like, and importantly how to get there.

When thinking about your future, there are many things that no matter who you are, we all consider at one point in time.

How much money do I need to live the life I want? What age will I retire? Why is it that people around me are able to afford new cars, new homes and investment properties and I can’t?

Regardless of if you are 30-years old, or 60-years old a financial planner can provide meaningful and realistic advice about what your financial future could look like, and importantly how to get there.

Obviously before you move to getting financial advice, it is vital that you ask yourself (and your partner if applicable) some key questions. What am I looking to achieve? How much do I have now? How much can I realistically earn over the foreseeable future? How much of that can I invest? And importantly, what am I trying to achieve?

There is no point booking an appointment with a financial planner should you be walking in with unrealistic expectations. Such as I earn $45,000 and I want to buy a Ferrari and a holiday home on the Gold Coast in 5-years’ time. Unless you win the lottery or have some inheritance coming your way, we are sorry to say this is not going to happen.

You need to look at yourself objectively, be honest and work out the reason why you, in your current financial situation, want to see a financial planner.

Why do people use financial planners?

There are two key reasons people seek financial advice, these are general financial advice and personal financial advice.

General Financial Advice, as the name suggests, is advice that doesn’t take into account you and your individual situation. This may be advice about a particular investment vehicle, such as shares, cryptocurrency, an investment fund etc. The advice doesn’t take into consideration how you may be liable or affected by the product or service personally.

Personal Financial Advice is a more comprehensive, tailored review and advice for you, of you now, where you wish to be in the future and the mechanisms available to you, in your current financial situation to get there. A qualified and certified financial planner will ask a series of detailed questions about you, together you set goals, review products and services applicable to your personal situation, and then advise you and manage your progress moving forward. Services may include, but are not limited to:

• Simple, single-issue advice— Help with one financial issue, for example, how much to contribute to your super, or what to do if you inherit shares.
• Comprehensive financial advice— Help to develop a financial plan to reach your financial goals. This covers things like savings, investments, insurance, and super and retirement planning.
• Ongoing advice— Regular monitoring and review of your financial plan and affairs.^[1]

With the rise of the ‘gig economy’, changes in working conditions, Self-Managed Superannuation Funds (SMSF) and general market access to riskier investment options (such as cryptocurrency, CFDs and other leveraged, often speculative instruments) a financial planner is often not only a good idea, but a mandatory one.

Why is a financial advisor so important?

Gone are the days where you start a job from the bottom of the company, work your way up for the next 20, 30 or 40+ years, collect your gold watch and retire to watch the sunset at your beach house as your grandchildren listen to you talk about ‘the good old days’.

The seismic generational changes in technology, historic housing price spikes, employment, how we work and who we work for – not to mention access to debt and credit facilities or the global economy, have all led to people wanting a work life balance. Working for themselves, working from home, working from anywhere – all sounds fantastic, until you realise that you are 50+ with no superannuation, a mortgage that you can’t foreseeably pay off and no ‘extra’ or ‘passive income’ from investments outside your work.

A financial planner can work with you, from a VERY small base, to set up your future. Including but not limited to savings, investments in funds, shares, alternative investments, currencies and much more, to provide income streams and security for you – despite your annual income.

When is the best time to see a financial planner?

Many people feel that financial planners are either “only for rich people '' or alternatively is like going to the dentist, and often ‘kick the can down the road’ as they may be embarrassed at their level of personal debt, number of credit cards or lack of financial prowess. WRONG!

The best time to see a financial planner is right now. Why, because today is literally the first day of your new financial life from the day you meet with a financial planner – no matter your financial situation.

Financial planners are there to work with you, and really only benefit when you as their clients do, not only now, but into the future. For example, if you are in your mid 30’s, with a few credit cards, merger savings and can’t see how you could ever get a mortgage like your friends – a financial planner can get you there.

If you are in your 50’s and are realising you have 15-20 more working years and want to set yourself up for retirement – a financial planner can help.

You are the recent recipient of some inheritance and you down want to see it go to waste – a financial planner can help.

Financial planners are experts in just that, planning how to realise the best outcomes financially for their clients over the short, medium, and long term.

And sure, there may be some home truths, some budget cuts, your ego may even take a bruise, but when the dust settles you will have a plan, with defined goals, and you will literally see the results starting to happen from week 1.

From there, your financial future will be more secure, it’s important to note, you need to take the first steps – but you also need to be responsible and take responsibility of your money, as the financial planner can show you how and work by your side, but only you can make your financial freedom a reality.

[1] https://moneysmart.gov.au/financial-advice/choosing-a-financial-adviser

Financial planning is the process of setting yourself and your loved ones up for a future in which you can enjoy, live comfortably and not worry about financial matters.

Many people have an idea what financial planning is, setting a budget, saving, investing money and helping people with money realise growth on that money. However, these people would be incorrect.

Financial planning is the process of setting yourself and your loved ones up for a future in which you can enjoy, live comfortably and not worry about financial matters. This is not saying that you will be throwing stacks of $100 notes around on your yacht like a rockstar.

What most people don’t understand about financial planning is it is a service for everyone from all socioeconomic and financial backgrounds. Everyone’s future is different and everyone expects different things – so when we say financial stability, that could be getting an additional residual income of $50,000 per month or $500 per week – it can be done with a cohesive financial plan, undertaken with a professional financial planner.

So, what is financial planning?

No matter what your goals are in life, it’s essential to plan ahead. A qualified financial planner can provide support to set goals and develop a practical plan to help you achieve them. As you move through life and your circumstances and needs change, a financial planner can review and tailor your plan, to ensure it’s still right for you.

Financial planning offers a solution on how to more effectively manage your finance in the short, medium and long term. This can be anything from saving from a holiday to building a comprehensive and diversified portfolio of financial assets.

Where a personal trainer works with you to help reduce weight or achieve a goal of running a marathon, a financial planner does precisely the same thing – but for your finances. With a top-line view of your situation, a financial planner will work with everything within your disposal. Household budgets, savings, superannuation, discretionary spending (such as holidays), investment options and of course planning for your retirement.

I have debt and little savings, so should I see a financial planner?

Of course! Take our example of the personal trainer once again. It doesn’t matter if you are 50kg or 150kg, seeing a personal trainer is essential for many reasons. They personalise a program for you, have you doing regular exercise within your personal circumstances and up the weights, distance and/or time as you progress – again, a financial planner is no different.

You may have several credit cards, a HECS Debt from university and be living from pay-to-pay to make ends meet, or you may be financially savvy with savings, investment properties and a portfolio of shares – it does not matter, a financial planner can help!

What is the process of financial planning?

As your financial wellbeing – as with your health & wellbeing – will largely dictate how your life is lived both now and into your future, it is important that you establish a meaningful and long-term relationship with your financial planner.

A good planner will work about setting goals, creating a plan and providing you with expert guidance, tips, techniques and opportunities to get your finances to where you want them to be. That is not to say they will make you a millionaire overnight, but they can set you up within your capacity, based on what you earn, what you can save and what you need to run your household - and of course take that holiday – while setting yourself up for the future.

You may have noticed that we keep talking about ‘a holiday’. Why? Because there is a misconception that by seeing a financial planner, they will tie all your money up and only let you have it down the road when the investments mature. Again, this is not true.

As mentioned, a Financial Planner sets your financial goals, ensuring they are S.M.A.R.T or Specific, Measurable, Actionable, Relevant and Timely.

For example, you may want enough money from 2022 to have one, overseas family holiday per year – fine. You may wish to retire by 60, with over $2 million in assets and investments outside the family home – ok. And I want to be a millionaire next week – not so good.

S.M.A.R.T objectives allow you to be real about what you can achieve within your personal situation, your risk tolerance, the years you realistically have left to work, and your earning capacity. You may now have school fees to contend with, when they are removed from the equation you can redistribute that money into your investment portfolio to maybe buy an investment property, shares or invest in a managed fund.

The key is and mentioned several times, it’s all done to a plan, with your Financial Planner, who meets with you each quarter, month, year – whatever suits you – and works collaboratively to achieve your goals.

Summary

In summary, there is never a bad time to set an appointment with a financial planner. Whether you are drowning in debt, through to driving your Porsche during the week and your Bentley on the weekend – a financial planner can help you move from where you are today, more effectively and efficiently to where you want to be tomorrow.

A failure to plan is a plan to fail, however when we are talking about you and your family’s financial security, your retirement, quality of life and yes holiday’s is this something you really want to gamble on?

Financial planning is planning to ensure the rest of your life is comfortable and you can spend it doing what you love, with whom you love and on your terms.

Working with a professional financial planner can give you confidence and peace of mind that your financial future is secure.

There are many myths and misunderstandings about financial planning, that they are only for the wealthy, that they only push their products or the ones that make them the most commission, and even that they are expensive and a waste of time.

Firstly, all the above is not only false, but it is almost entirely the opposite.

Financial planning is about developing strategies to help you manage your financial affairs and meet your life goals – and the first step is to make sure you have access to the right advice.

An excellent financial planner sits down with you (and your partner if applicable) and sorts through your current financial situation, your future desires, and your capacity to bridge the gap from where you are now to where you want to be.

You should know that a financial planner can be beneficial to you regardless of your income level. But they’re most beneficial to someone seeking specific advice about their spending, saving, earning, or investing strategies (or lack thereof). A financial planner isn’t meant to teach you the fundamentals of personal finance but to show you how to use your money as a tool to accomplish what you want.

Your financial planner will form objectives to suit your short-, medium- and long-term strategies to achieve those objectives and recommend a range of financial services and products to achieve those objectives – hopefully, sooner rather than later.

To become a Financial Planner in Australia, one needs to meet the minimum standards set by the Australian Securities and Investments Commission (ASIC). From 1 January 2019 the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 requires new financial advisers to complete a bachelor or higher degree (or equivalent qualification).^[1]

This new ruling requires even the most senior existing financial planners to meet the same minimum qualification standards that until the 2017 amendments were not in place. This is a great piece of mind for you as a client of the ‘new breed’ of financial planners.

In addition to their qualification, your financial planner should be a member of the FPA or the Financial Planning Association of Australia, which mandates that planners must, along with serving you as a client, complete a large amount of CPD or Compulsory Professional Development.

That means that they are going to be upskilled, trained and proficient in the newest and most advanced products and services to help you achieve the financial success and freedom you are looking to realise.

Financial planning is the sum of many parts, but most of all, as the name suggests, it is a plan.

Remove the subjectivity, look at your future through an objective lens.

If you are not from a business background, this may be a little hard to comprehend, but bear with us. So think of yourself as a business (and you as the CEO), and your financial planner, your CFO (chief financial officer) who has to map out the most prudent, logical and realistic roadmap for your business (you) to achieve the objective set by the CEO.

Every business has a business plan, a set of S.M.A.R.T Objectives (Specific, Measurable, Achievable, Relevant, Timely) that guide their strategies, their operations, marketing, sales, you name it.

[1] https://www.seek.com.au/career-advice/role/financial-planner