How can a financial planner help people plan for retirement?
Most financial planners have a wide range of knowledge so they can advise clients on the best way to maximise and protect income and savings. Your adviser will consider the various tax, superannuation and Centrelink options available to retirees, and which may be relevant to you. For instance, this year’s Federal Budget included important changes to taxes on super which may impact you. A planner may also provide estate planning advice and will work with a solicitor to ensure wills are kept up to date.
How to go about finding the right planner for you?
You must look for someone who is licensed and qualified to give advice.
A financial adviser must meet certain legal standards in the areas of training and education, professional conduct, compliance and disclosure before they can give advice. They must be licensed by the Australian Securities and Investments commission (ASIC) or be authorised to represent a licence holder. Licensing details can be checked at www.fido.asic.gov.au or via ASIC’s Infoline: 1300 300 630. It also makes good sense to look for a financial planner who is a member of the FPA.
FPA practising members are committed to a code of ethics and rules of professional conduct and operate to higher standards than those required by law. Look for planners who are CFP® professionals. The Certified Financial Planner™ qualification is recognised internationally as the highest professional qualification for financial planners. CFP practitioners also have higher requirements for continuing professional development to maintain their accreditation. FPA runs a Find-A-Planner service on its Good Advice website.
What are the main issues you should consider?
Go to your first appointment with notes on your financial goals and what you want from your adviser. Until you make your choice of adviser don’t need provide too much detail about your finances or investments but you will need to give some information. However, once you have chosen a planner be prepared to go into detail and provide full information about your income, debts, what you own, and your expectations. Ask how they charge for advice (for example, fees, commission, or a combination of both), as this will give you a good basis for comparison with other planners you are checking.
Always ask for a copy of the adviser’s Financial Services Guide – this is a legal requirement and sets out basic information about the adviser, services offered and charges. Make sure you feel comfortable with the adviser and their advice and be sure you can place your trust in them. You have every right to expect your financial planner to treat you honestly and fairly, and to be always acting in your best interest. The Good Advice Booklet provides further information and questions to ask. The booklet is available free to consumers and can be downloaded from www.goodadvice.com.au or posted to you by calling 1300 729 623.
This information was provided by the Financial Planning Association of Australia Ltd.
Disclaimer: Baby Boomers Life Change and associated companies & individuals take no responsibility for the advice given by a financial planner or the outcomes of any financial plans prepared by the planning groups listed.