Globally, COVID-19 disrupted historical patterns of economic growth. It led to job losses, wage reductions, and reduced business activity, affecting economic well-being and causing financial stress to individuals and businesses alike.
According to a survey by the Australian National University in 2021, 34% of people in the country claimed to experience financial stress. Financial stress can lead people to make effective investment decisions. This can be catastrophic for startups and people looking for ways to maximize their wealth.
A simple solution to buying your way out of bad financial management and planning is hiring a professional to do the job for you. A financial advisor is a professional who advises individuals and organizations on financial matters. Financial advisors typically have expertise in making budgets and intelligent investment decisions. They can help people set and meet their goals by giving the best advice regarding money matters.
So, if you are looking for a financial planner, here is what you need to know:
- Do your research
Doing your research upfront can save you time and hassle in the long run as it helps you make an informed decision about who to work with to achieve your financial goals. Start by reading reviews online and asking friends and family for recommendations.
Sydney is the financial hub of Australia and has become a thriving city providing nearly 25 percent of the country’s total GDP. It’s a good city to look up relevant services; hence Google financial planning advisor in Sydney for some options. After you make a list of potential advisors to contact, be sure to check out their websites and LinkedIn profiles. It will help you deduce if they’re worth investing your time and money in.
- Confirm their certifications
It is best to get financial advice from a professional who’s certified to do so. Certification ensures the professional adheres to ethical practices and state regulations. Not only do you ensure that the person you’re taking advice from is legally allowed to give advice, but you assure the advice you get is likely to be worthwhile.
Look for advisors certified by organizations such as the Financial Planning Association of Australia or CPA Australia. These certifications ensure the financial planner has completed training and education standards and is committed to providing professional advice.
You can also search for financial planners certified by the Australian Securities and Investment Commission. This will ensure they are qualified to provide financial advice under the law.
- Evaluate their experience
Experience can indicate a professional financial advisor’s level of expertise and knowledge. An experienced professional will have a better understanding of financial basics, investment opportunities, and tips and strategies to help you make good use of your money and assets. This experience is also crucial if you’re looking for advice on a specific sector, for example, real estate, stocks, long-term business planning, or FinTech.
Search for “financial planner penrith” to find an advisor with a few years of experience related to what you’re looking for. Choosing an experienced advisor can give you insight into the types of clients they have worked with and the results they have achieved. It can be a good indicator of the quality of service to expect and the potential return on your investment.
- Consider a fiduciary
A fiduciary is a person or organization that puts their client’s best interests ahead of their own and strives to preserve trust and good faith. Fiduciaries are also held accountable for any mistakes or errors in their advice. Choosing a fiduciary can provide you with added peace of mind, knowing that your financial advisor has a legal and ethical obligation to act in your best interest.
Ensure that the fiduciary you choose is an independent advisor not affiliated with any large financial institution or corporation. An independent advisor is more likely to keep your best interests at heart and will recommend a plan tailored to your individual goals.
- Look at how they work
Each financial advisor has a different approach to managing clients and making investment decisions. It would be best to ask the advisors you’re considering working with about their work and how they go about helping clients reach their financial goals. It can help determine if their processes align with your risk tolerance.
Find out what steps they take to identify areas you need to focus on, how they can help you make better decisions, and how much guidance they offer throughout the process. Additionally, ask about their investment strategy and if they have any specific methods for helping you achieve your short and long-term goals.
Also, evaluate their communication style, availability, and level of transparency. This will ensure you are comfortable with the way they operate and how they will report to you. After all, you wouldn’t want to work with someone who can’t communicate effectively, is hardly there to answer your concerns, and someone you can’t trust with your assets.
- Ask how much they charge
A good financial advisor should be willing to explain their fee structure in detail and provide an itemized list of the services they’ll be delivering in return. If they’re not clear about the terms they’re willing to work on, consider that a red flag.
Most financial planners charge an hourly rate like most legal services or a percentage-based fee. The more assets you have, the higher the fee. Find out exactly how much you must pay before you commit to any service. Also inquire about any additional fees, such as trading fees, account set-up costs, or termination fees. These costs can add up quickly. Be aware of any costs that may be a conflict of interest.
Financial planning is integral to managing your assets and securing your future, and working with a skilled professional can be the difference between success and failure. Finding a knowledgeable, experienced, and trustworthy advisor can be complicated. Use the tips mentioned above to shortlist an advisor who can get you the best bang for your buck.