If only dealing with our finances were as simple as putting money in the bank and forgetting about it, none of us would ever require the services of a financial advisor in Sydney or anywhere else. But life is seldom so simple, and there are many details and strategies to consider when making the most effective, logical use of what money there is. This is especially true at certain moments in life, such as:
- Following a substantial pay rise or windfall
- When becoming the beneficiary of an inheritance
- Pregnancies, marriages, divorces and other major milestones in life
- Retirement
Individuals living from one instalment of cash to the next stand to gain little from engaging the services of a financial advisor in Sydney, likewise those with significant existing debts.
How the process works in Australia
We have some recommendations for choosing your preferred financial advisor in Sydney and will address those shortly. However, it is important to first look at what financial advisors do and what you should expect from them. As a bare minimum, they should offer you a free consultation meeting where they carefully explain their intended course of action and allow you to ask any pertinent questions. Experience, qualifications, and fees should all be part of this conversation. Their services should include helping you to:
- Accurately and honestly assess your financial situation
- Identify achievable financial goals
- Implement any aspects of the plan they can handle for you
- Review regularly
Analysing and planning
Once they have looked carefully at every facet of your financial standing, it will be much easier for your advisor to create a comprehensive plan and break it down into simple steps. They will have a network of preferred specialists they use regularly for certain aspects of your strategy and should be upfront about any commission they receive when sending business their way. The external professionals they might turn to depend on your exact circumstances but may include:
- Accountants
- Solicitors
- Investment companies
- Savings experts
A financial partnership in the making
Both parties must view it as the start of an ongoing, mutually beneficial partnership, and you should feel comfortable and able to ask questions from the word go. Any financial advisor in Sydney worth their salt will never rush you to make on-the-spot decisions or arbitrarily brush away your questions. Use your instincts and, if unsure, be prepared to walk away and arrange more interviews with potential candidates. Here are some subjects you should discuss:
- Qualifications
- Experience
- Licences
- Specialist subjects
- Membership to the Financial Advice Association of Australia (FAAA)
- Charges and additional fees
Membership to the FAAA ensures total transparency in any fee structures, and you will be given the chance to understand and approve those fees before any further action is taken. Although some financial advisors in Sydney may not be members of this particular organisation if only offering general advice, most will be. You can also check if your potential financial advisor in Sydney is listed on the financial adviser register. This is information found on the Australian government and Australian Securities and Investments Commission (ASIC) websites.