| "> | | | | When choosing a financial planner, it's important to |
| It can be difficult to find and then build a relationship | | | | know exactly what you're after - the same as in any |
| with a financial planner you trust and who is also | | | | relationship. Don't allow yourself to be intimidated. |
| looking out for your best interests. It can be a bit like | | | | The 4 step guide to finding a good financial planner: |
| finding love at one of those | | | | 1. Talk it over |
| over-28-nightclub-attached-to-a-shopping-centre | | | | Interview them. Ask them why they are the best |
| situations - nothing is as it seems. | | | | person to manage your money. Ask them about their |
| The Australian Securities and Investments | | | | experience in the industry and their qualifications as |
| Commission (ASIC) warns that in many cases financial | | | | an adviser. It's the first step to avoid being ripped |
| advisers act merely as salesman for the products | | | | off. |
| their employee is flogging. This is because eighty per | | | | 2. Find out if they are registered |
| cent of the financial services industry is owned and | | | | Jump on the net and make sure the financial planner |
| controlled by the financial institutions that produce the | | | | you're considering is at au. They have to be |
| product. | | | | registered and, by law, advisers must provide you |
| Most financial planners get paid a commission from | | | | with a copy of their financial services guide. This |
| the product they sell you. This makes the way they | | | | details how they are paid, what investment products |
| are paid one of the biggest problems in finding a | | | | they offer, if they are associated with a financial |
| financial planner. Some products pay higher | | | | institution and how the planning firm handles |
| commissions, and surprise, surprise, you'll find that | | | | complaints. |
| many financial planners structure their advice based | | | | 3. Check for any affiliations with financiers |
| on the amount of commission they'll earn, rather than | | | | If they are affiliated with a financial institution, ask |
| what's best for you. | | | | how this affects their investment decisions. If |
| Typically, commissions are made up of the following | | | | someone is offering to provide you with a 'free |
| components: | | | | financial plan' remember there's no free lunch. You |
| * What's known as an entry fee which is up to 4 per | | | | want to know exactly how the adviser will get paid. |
| cent of your investment | | | | 4. What's your gut feeling? |
| * A 'trailing' commission of about 0.6 per cent a year | | | | Trust your gut. If you're unsure, walk away. |
| of the value of your portfolio | | | | Follow these steps, ask the right questions and you |
| * Plus 'soft' commissions (which they are required to | | | | and your financial planner will be in for a long and |
| disclose) to pay for trips to conferences and holidays. | | | | happy relationship. |