Getting financial advice in Australia is hard, and the last few years have only made it more challenging.
Let’s talk about why. It’s expensive. It’s hard to find the right adviser for you. It’s hard to know when advice is conflicted. It’s hard to fully open up to someone about your finances. It’s hard to read through all the documentation and fine print.
But financial advice can also be a game-changer for many people when it comes to their money.
Sometimes you need an expert in your court to help your work through everything and put together an action plan.
On The Australian Finance Podcast our goal is to educate and equip you with the skills to take control of your time & money, and we don’t really like to let topics sit in the too hard basket for long.
So this week’s episode is all about financial advice (with a qualified financial adviser).
Getting financial advice can be a big and expensive decision, so in this episode we discuss what financial advisers can help you with, key questions to ask when finding a financial adviser and most importantly… how much it actually costs.
I’d highly recommended tuning into this episode, to make sure you’re equipped to ask the right questions if you decide to get financial advice.
What is financial advice?
According to our regulator ASIC, personal advice is financial product advice given or directed to a person (including by electronic means) in circumstances where:
- the person giving or directing the advice has considered one or more of the client’s objectives, financial situation and needs (other than for the purposes of complying with the Anti-Money Laundering and Counter Terrorism Financing Act 2006, or regulations or rules under that Act); or
- a reasonable person might expect the person giving or directing the advice to have considered one or more of these matters
If a person is providing you with financial product advice, they are providing a financial service under the Corporations Act and (unless an exemption applies), must hold an AFS licence or act as the representative of an AFS licensee (ASIC RG175).
This means if you want someone to look at your personal financial situation and give you advice on which investments to make, where to put your super and what insurances you may need, you’ll need to get the help from a licensed financial adviser.
Related lesson: The difference between personal & general advice
5 questions to ask your financial adviser
When you meet a financial adviser for the first time, think of it like a job interview. They’re assessing whether you’re the right fit for them and you should be doing the same as well. Here are five questions to throw at them during your initial meeting, to see if they’re a good fit for you.
- What are your qualifications, previous roles, experience with clients like me, testimonials and specific areas of interest?
- What is your approach/philosophy towards finance and investing? What type of investment products (e.g. ETFs, managed funds, property, REITs) do you typically recommend to clients?
- What are your various fees and charges for the SOA, implementation and ongoing support?
- Am I able to contact you with questions about my finances at any time or do I have to schedule a meeting?
- What education and ongoing support will you provide me, so I can feel more knowledgeable and confident about my financial future?
Action steps
If you’re keen to learn more about what financial advice is, how to choose and find a financial adviser, and the cost of financial advice, check out this article.
I’ve also included a bunch of helpful resources from this week’s podcast, to help you learn more about financial advice in Australia.
- Paul’s website: Financial Autonomy
- Financial Autonomy Podcast
- Finding a financial adviser in Australia (and the 5 questions you should ask)
- Financial Counselling in Australia
- Ep. 73. The Role of a Financial Counsellor | Rask Australia
- Financial advisers register – Moneysmart.gov.au
- Financial advice – Moneysmart.gov.au
- Find a financial planner – The Financial Planning Association of Australia
- Adviser Ratings: Find, Rate and Review a Financial Adviser – Adviser Ratings
- Independent Financial Advisers and Planners in Australia
- Responsible Investment Association Australasia: Home
- Ethical Advisers’ Co-op – Invest your super in line with your values
