Going to see your Financial Planner

David French | 18/02/2009 1:28:01 PM

This article was published as “Tips when consulting your financial planner” in The Morning Bulletin in October 2001.

Most new financial planning customers come with some trepidation and doubt. There is a sense of uncertainty driven by a combination of the prospect of trusting someone to help with financial matters, concern for privacy and unfortunately the chequered history of the industry. Mostly the fear is unfounded. Here are some tips to help you get the most out of your first meeting.

You need to have a grasp on your current income, assets and liabilities. If you are uncertain of information regarding these it is best to bring tax returns and other statements. If superannuation is an issue then you must bring your statement. The laws surrounding superannuation mean that the one investment can be subject to quite a number of tax regimes and other rules. As far as super goes, it is impossible to give any recommendation without these statements.

Having a good grasp of your objectives is helpful. Do you want to save for retirement; are you planning to have a family; or do you just want to build a share portfolio? Are you concerned about being involved in financial markets (which outside of a term deposit is where you will be investing)? All of these things have an impact on the appropriate financial solution.

Talking with your spouse/partner before you come in is very helpful. Even the best financial planner is no marriage counselor and it is extremely difficult to get at the major issues if husband and wife are at loggerheads. Disagreement on some things is normal, so collect the information at the meeting and then sort the underlying personal issues out at home. If you both agree on your objectives then you are half way there.

Have questions prepared before you go. Questions about the nature of investments, fees and expected returns are very appropriate.

Often you will be asked to give further details about yourself or to formalise those matters discussed above. Filling in these forms is very appropriate, but only if it is clear that they are designed to benefit you. Don’t waste time with requests that are clearly disguised marketing tools. If you don’t want to give all your details you can ask the planner to look at specific issues only. You will probably have to sign a statement to the effect that you required very specific advice that did not take into account your financial position, investment objectives and particular needs.

Once a plan is prepared for you, read it carefully. Try to understand the strategy and the investments and make an independent judgment as to whether your needs are being catered for. See if the planner can tell you which investments have secure returns and which investments are more affected by market conditions. Make sure you understand the fee structure, particularly with regard to up-front commissions, ongoing management expenses and exit fees.

The Investment Collective (AFSL 471728) is a non-aligned financial planning and investment firm specialising in providing tailored financial and investment advice for individuals and small business. Capricorn Investment Partners Limited's services include financial planning, share trading, portfolio management, insurance broking and self managed super fund administration. Additional information on services provided by The Investment Collective Limited can be found by following this link. Readers are reminded that this document has been prepared for general information purposes only, and any advice contained herein has been prepared without taking into account your financial objectives, situation or needs. Readers are advised to see their financial advisor prior to acting on any general advice.

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Going to see your Financial Planner