Choosing a Financial Advisor

Posted on: 19 August 2016


When you are choosing a financial advisor to help you plan for your future, you need to see what industry they are involved with. Many industries have certain requirements for continued education, certification, and level of conduct. A financial advisor who is connected with an association can give you an added level of security. Look into the Financial Planning Association and the Association of Financial Advisers to see if a potential financial planner is connected with one of the associations.

Background Check

While you may not literally need to conduct a background check in regards to a criminal record, you should look into your potential advisors. Take your time doing this as choosing a financial advisor is an important decision and should not be rushed. First of all, look into their experience. Are they connected with an association? How long have they been in the business? Do they have a large customer base? Have they been disciplined by the Australian Securities and Investments Commission? Do they hold the proper license? Registers online can give you the answers to these questions. You may also ask friends if they have a financial advisor and their experience.

Specific Business Details

Once you have used the above information to narrow down the options even more, you must call them or use their website to retrieve a financial services guide. This guide will give you information about their areas of expertise and their prices along with their license number and any product providers. If they do not give you some of this information, you should be suspicious as to why they would not release the information.

Financial Products

Last of all, you must look into advisors that can help you with any investments or financial decisions that you have already made. Some businesses may have an approved product list that will describe which products are those on which they may give advice. Do not select a financial advisor who only sells one product or investment. This puts them more in position of salesman for that specific product and less able to provide you with a specific plan that fits your needs. Make sure that the potential financial advisor has been participating in continuing education. If you are not able to see evidence online, ask. Many may have the certificates from the courses in their office that clearly show their designations. Feel free to meet with a few advisors once you have narrowed your list down to two or three.