5 Tips for financial planning

Here are 5 quick tips to make the most out of your relationship with your financial professionals. Tip 1 – speak to Services Australia’s Financial Information Service first. • This is a free and impartial information source that can educate and inform you about the financial planning process. • They can explain the roles, financial terminology and costs so you know what to expect when you meet with your financial professional. Tip 2 – work out what sort of financial professional you need, or if you need one at all. • The more complex your financial arrangements, the more likely you’ll need to engage financial professionals, which could include planners, accountants and lawyers. • The simpler your arrangements or your investment plan, the less a professional can add value for you. Tip 3 – try before you buy! • Most financial advisers don’t charge you for the initial meeting. • That means that you can meet with a range of planners before you decide who you want to sign up with. It allows you to compare different advisers, what their approach to investing is, how they provide their services to you, and their fees. Tip 4 – read everything your financial professional gives you. • You’re going to be given a lot of documents as part of the process – each one is there for a reason. • Make sure you read them and understand them. They answer a lot of the questions about strategies and investments you might have. And lastly, tip 5 – understand what your professionals can and can’t do. • They are bound by regulations and overseen by the Australian Securities and Investments Commission. • That means that in practice, advisers are limited in their authority to make suitable recommendations about your investments without your input, and they can’t move your money around without your permission.