Guest Post: Choosing a Financial Adviser

At Select, we specialise in providing expert advice to our clients so they can achieve their financial and personal goals. However, sometimes we're asked about investment, superannuation and retirement strategies, which are a little bit out of our expertise. We are firm believers in the importance of asking for professional advice, and in these cases, we recommend finding a financial advisor who can help with your future financial planning schemes.

To allow you to understand who financial advisers are and what they do, we contacted Nigel Kingdon, the Manager of Just Financial in Kardinya, to share a few words about the importance of choosing the right financial advisor to suit your circumstances.

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Many people don’t consider consulting a financial adviser until they are close to retirement. However, for the best chance for financial independence in your retirement, the earlier you start on your financial plan, the better.

Specialist advice

While your financial institution will continue handling your regular transactions such as daily savings, term deposits and personal or housing loans, a financial adviser will provide specialist advice on strategies and products for wealth creation, superannuation saving, retirement and investments such as shares, managed funds and property trusts.

However, choosing the right financial adviser is a crucial component of a successful financial strategy. Important factors such as qualifications, licence, services offered and fees should be considered when looking for a financial planner.

The right qualifications

Some financial advisers are originally qualified in accounting, stockbroking or other fields of finance. Others have undertaken specialised training in investment and retirement planning.

To give advice on securities such as shares, bonds and managed funds, advisers must either be licensed by the Australian Securities and Investments Commission or be an Authorised Representative of a licensee, who is responsible for their monitoring, training and supervision.

There are many duties and responsibilities imposed on individual advisers by law, policy and industry standards.

It is also important that the adviser has access to research on investment products and information on issues in the business and legislative environment that may affect investment decisions. These may be built into an ongoing service in which the adviser regularly reviews your investment strategy and portfolio performance.

Disclosure of fees

The methods of remuneration for financial advisers may vary. Financial advisers do not receive commissions or volume payments but instead charge a fee based on the service you require and agree to. This fee will often cover preparation of your financial plan and establishment of the recommended investments.

Your adviser should inform you of the fee details before you make your investment decisions. Most importantly, you must be satisfied that the planners advice gives you the most suitable combination of investments for your needs.

If you would like to know more about how a financial adviser can help you plan for your future, call (08) 9337 5247 to arrange an initial consultation with a Just Financial financial adviser.

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Nigel Kingdon is a qualified accountant who moved into financial planning in 1985. With over 32 years of industry experience working with Home Building Society, Energy Financial Planning, IGP Financial Services and Just Financial, he has established a professional profile specialising in superannuation, tax planning and investment strategies. As the current Manager of the Just Financial Kardinya branch, his office is home to experts in life insurance, income protection and wealth creation.

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