Before you commit, you want to make sure you hire the right person for your aged care financial planning.
Not all financial advisors are created equal, and some might be trying to line their own pockets with commission-based sales rather than give you the best advice for your investment and retirement plan.
Here are 3 questions you need to ask during the initial appointment:
1. How long have you been giving financial advice to people in my position?
Although this may seem like a simple question to ask, it is a very important one to ask. The more experience the aged care financial planner has, the better. If the answer they give is less than two years’ experience, you should ask whether anyone else in the business, with more experience, will check the advice given.
You also want someone who is up to date with the latest happenings in the sector. It’s important to look for one of three advisors:
- A Certified Financial Planner (CFP)
- A Chartered Financial Analyst (CFA)
- A Certified Public Accountant (CPA)
2. Are you a fiduciary?
The fiduciary standard requires an aged care financial planner to recommend investments that they believe are in the best interest of the client. Those not held to the fiduciary standard are only required to recommend investments that are suitable for the client. This can make a huge difference in terms of where your money is invested and if their fees are contingent on your portfolio balance. Financial advisors not held accountable may be incentivised to see your portfolio grow in order to increase their own commission.
3. How will your relationship work?
It’s important to understand how often you will meet and whether they are available for phone calls or emails outside of scheduled appointments. If you’re paying your advisor to manage your money for you, you should expect some level of service for those fees.
By asking your financial advisor questions and better understanding their background, you will be able to determine whether you feel comfortable with them overseeing your finances. Ask them about their qualifications, experiences, fee structure, and philosophy to gauge whether or not you’d still like to pursue their services.
