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Hi. I’m Mel from the Department of Human Services.
With the economy dominating our lives, we often wish someone
could guide us through it all. Well, it is possible. There are
people who can help. The question is: how do we
choose a financial adviser? Importantly,
you’re looking for a qualified professional, whose focus is meeting
your goals and financial needs, not
selling financial products.
A financial adviser must take many matters into account before they can give
financial advice. They can help you answer questions such as: What do you
want to achieve? How much risk do you want to take? A financial adviser
will help you to identify your financial
and lifestyle needs and goals, such as: Plan your financial affairs
Prepare for major changes such as a mortgage, retirement; Developing a
savings plan or investing a lump sum. While there are many financial
professionals, specialists in their own field, they’re not all licensed
financial advisers.
A licensed adviser must fully disclose any type of benefit for recommending
a product or service. So, how do you find a
licensed financial adviser? Well,
there’s word of mouth. Ask friends and
colleagues about their experiences. There are organisations you already
deal with, such as banks, credit unions,
superannuation funds, accountants, insurers and even your own workplace.
And there’s always the internet and even the yellow pages! Aim to
talk to at least two advisers and let them know you’re shopping around.
Remember you’re hiring them to do an
important job, so check them out. Are they a licensed financial adviser?
What type of advice can they provide?
Remember, when you meet the adviser, they will be working for you. Ask
them about their qualifications and experience, rather than
what they can sell you. Give general information
about yourself and your goals, take
notes and ask for written material. DO
NOT be pushed into signing on as a client then and there. Finally, all
licensed advisers must provide you with
a Financial Services Guide explaining how they’re paid, who they work for
and any complaints resolution scheme. In the end, you need to
compare and consider. And remember, only deal
with licensed advisers. For more
information go to humanservices.gov.au/fis
or the moneysmart.gov.au website and search for ‘financial advice’.