Great questions for financial planners
When you meet a financial planner, you need to know if you can build a long-term relationship with them. The planner should listen to your situation and ask questions about your personal finances. This enables the consultant to give you the best possible advice and to understand whether he can help you further.
Some of the most common questions consumers should ask their prospective financial advisor include:
1. In which areas can you advise? Different advisors and firms may specialize in different areas of advice (e.g. self-administered pension schemes, direct investment, insurance, etc.). If you are seeking advice, make sure the advisor has expertise in the areas you need.
2. What is your main customer type? You want to know if the financial planner and the company have dealt with clients like you in the past. For example, if you are purchasing complex insurance for your business, you may want to consult a financial planner who will attend to the insurance needs of other business owners on a regular basis.
3. What are your qualifications? The entry qualification is RG146 or a financial planning diploma. A more experienced advisor should be a Certified Financial Planner (CFP) with 5+ years of experience.
For more information on qualifications, visit our Financial Planning Qualifications and Courses page. Please note that in any industry, qualifications and experience are not always a guarantee of good service.
4. What initial and ongoing service do you offer? It is important that you understand what initial and ongoing service you are receiving as some people require full service and others may prefer more limited contact. There’s no point in paying for something you won’t use or being surprised if the service doesn’t live up to your expectations.
Services and costs differ from company to company and also depend on the level of service/advice you require. Most financial planning reseller groups charge an upfront fee per consultation and a flat fee in dollars or % of assets under management for ongoing services. Make sure you understand the initial and ongoing costs of the service and how it will be provided to you.
5. Conclusion; The above questions are general in nature and should only be used as a guide. It’s also a good idea to ask your prospective financial advisor personal questions to get a sense of their personality, hobbies and interests and to make sure you’re comfortable.