Planning for your finances is not an easy task. One day you’ll be earning from your job, wanting to spend good things for yourself but on the other hand there is guilt because you have obligations to fulfill like paying the electricity, bills, etc. Then here comes the dilemma of investing, while for others it could be contemplating if they should get life insurance and health insurance or wanting to build a business to make them feel secure for the unforeseen circumstances, then eventually wanting to be stable for their retirement. It’s a lot and sometimes you don’t know which to prioritise or how much percentage should be allocated because your budget is limited. Here’s where a financial planner would come in.
Selecting the best financial adviser for your circumstances is crucial due to the wide range of services and specialisation available. By doing this, you can avoid paying for unnecessary services or engaging with an adviser who is an appropriate match for your objectives. There are a lot of financial planners in Melbourne, but which is competent enough and could understand your needs right away?
Generally, in choosing a partner you should be aware of your own needs before committing to a relationship, correct? That’s how it is with choosing a financial planner too. You have to assess your current financial situation– your income, expenses, debts, savings, investments. Then identify your short-term (e.g., building an emergency fund, home improvements, vacation budget, funding a hobby) and long-term (e.g., retirement savings, starting a business, children’s education) financial goals.
After knowing what you want. Source a financial planner through various ways, it may be from online resources (e.g., financial advisor directories, professional websites), referrals (from friends, family, colleagues, and other professionals), and networking (attending industry events or joining professional networking groups).
Now, you must evaluate your potential planner. Look for their:
- Qualifications and Credentials
- Experience and Specialisation
- Client Reviews and Testimonials
Then this step is as important as the other step: Have an initial consultation with them. It would be ideal to have a list of questions regarding their finances. Even knowing a short background on why they choose to be a financial planner would be a good question. Asking how they’ll be communicating with you on an ongoing basis could set your expectations. Prompt a question that would give you a hint on how they communicate, listen, and just the overall approach.
Don’t forget that it’s okay to talk to another financial planner. You are investing and partnering with someone who’d be with you in the long run. You have to assess and see different qualifications, experience, fees, and overall approach. You have to choose who is best aligned with your individual needs and preferences. Sometimes talking to one or two people is not enough to know that they are the right one for you.
Do extensive research before deciding on a course of action. Make sure that the planner has the required licences, credentials, and qualifications, such as CFP®, CFA, or ChFC; conduct background checks if you must. Research is essential to make an informed and secure choice.