Although financial advisers cannot legally promise to improve your returns, they are well-known for being contributing factors to increasing people’s investment returns and overall wealth. Aside from that, advisers can also provide the perspective and assistance you need to get your financial situation in order and take you out of debt.
It’s great to have someone give you sound financial advice and steer you in the right direction. However, you may want to avoid these blunders when choosing your future adviser.
Hiring the First Person You Meet
Search engines have made it more accessible for people to find professionals who can provide sound financial advice. However, this doesn’t mean you should hire the first person who pops out from your Google search.
Treat the process of hiring an adviser the same as you would when employing someone in a company. It means exploring their website, checking their credentials, and reading client reviews and testimonials.
Make a shortlist of potential candidates and interview them. Finally, choose the one who can best help you achieve your financial goals.
Not Checking Their Specialisations
People need guidance navigating different financial products. That is why some advisers specialise in financial planning for retirement, investment planning, superannuation advice, and more.
When looking for an adviser, always check out their specialisations, strengths, and weaknesses to ensure they are right for you. You can also research companies with experienced advisers in their roster to gain access to all of them at the same time.
Choosing Someone with the Wrong Strategy
Every adviser has a preferred strategy to help you boost your investment returns. However, you have to check if their methods align with your financial behaviour and instrument choice.
It means that if you are someone who aggressively invests in shares, an adviser who prefers property may not be the best match for you. However, suppose you find that your investing style is landing you into trouble. In that case, you may want to have an adviser who is moderately aggressive or conservative in their strategies to be your voice of reason. Remember to always check with your adviser if both of you are on the same page.
Not Knowing How They Are Compensated
Advisers are professionals that do need to be compensated. Be sure that you understand how they get paid at the end of the day.
There are various ways an adviser receives their income. They can either charge a fee-only flat rate or charge a percentage-based fee on the assets they manage. Others are paid in mutual funds for their commissions which can be a conflict of interest. Double-check how your adviser is paid, and if they get compensated more when they ignore your best interest, find another adviser.
Choose Central Coast’s Trusted Financial Planners!
Financial advisers can help you achieve all your financial goals if you are willing to work for them. An adviser can point you in the right direction to be debt-free or retirement-ready.
Before signing a contract with an adviser, remember to check their credentials and review their website. It will also help to read their clients’ feedback, ask about their specialty, gauge your compatibility with their strategies, and understand how they are compensated. When you do all these right, you might meet the adviser who can teach you the path to financial independence.
If you are looking for some of the best financial advisers on the Central Coast, look no further than Central Coast Financial Planning Group. Our team of experienced and knowledgeable financial planners and advisers makes it a point to tailor their plans to your specific needs, preference, and lifestyle. Book a complimentary meeting and start your journey to financial security today!
Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.