3 Tips for choosing the right Financial Adviser

Here are a few basic tips for choosing the right Financial Adviser

Think about your financial situation and what financial goals you want to achieve.

A Financial adviser who’s the right fit for you can depend on what kind of help you need. Before you start searching for the right financial adviser you’ll need to ask yourself exactly what it is you want an adviser to do for you.

If you’re looking for someone who can do a comprehensive assessment of your finances, assisting you with everything from developing a retirement plan to assuring you’re saving enough and making sure you have sufficient life insurance and income protection.

Then in that case, you probably want to deal with an Authorised Financial Adviser (AFA), who can take a comprehensive look at all of your financial needs.

Ask about experience

Ask about the financial adviser's experience and qualifications. If you have a particular financial goal, then it makes sense to choose a financial adviser with expertise in your particular area.

Note, many AFAs have the National Certificate in Financial Services (Financial Advice). (This is now known as the New Zealand Certificate in Financial Services.) They’re also required to undertake continuous development to maintain their professional competence, and to gain new knowledge and skills.

AFAs who do not have their certificate must have an alternative qualification, such as a graduate diploma in business studies (endorsed in financial planning).

Registered financial advisers (RFAs), such as insurance and mortgage advisers, don’t have to have a formal qualification. You can ask them whether they have any relevant qualification, for example, the Chartered Life Underwriter (CLU) designation.

Feel comfortable

Keep in mind, since your personal relationship with a financial advisor is important, make sure you feel comfortable with them. You should be able to discuss any aspect of your finances and feel like you're fully understood.

 

The information is of a general nature and does not constitute financial advice or other professional advice. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances.

Resources: fma.co.nz