(03) 9020 2905Grill a potential adviser like a toasted ham and cheese sandwich. Apply heat and pressure and the good ones will, metaphorically, make your cheese gooey, giving you confidence that they’ll do what’s right for you. Here are my top five.
Who ultimately owns your licensee? Independence. If the adviser is ultimately licensed through a product provider/manufacturer (banks, insurers or platforms for example), the provider expects them to sell that product. That’s why banks/insurers buy other financial planning businesses. Reasonably independent advisers do exist and are more likely to be able to search for a solution that suits you.
How can I pay for your services? The industry’s biggest discussion point currently is fee-for-service versus commissions. Rightly, commissions are being slowly phased out, particularly for super and investment. But for Gen Xers, particularly where insurance is involved, commissions might work better for you. You want your options explained.
What sort of clients do you typically see? Find an adviser who has strong experience with people in similar positions to you.
What sort of advice can you give? Many advisers specialise in limited areas, such as shares, super, investment or insurance. Some people need specialist advice. But for Gen Xers seeking advice for the first time, find someone with good experience in the three major advice areas – insurance, superannuation and investment.
Tell me about your background. Many advisers are simply good sales people. They could sell ice to Eskimos and might have previously been in many other sales roles. You want an adviser who is passionate about the industry, about making and protecting money, not just about a sale.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.