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WHAT TO EXPECT FROM YOUR FINANCIAL ADVISoR IN PERTH

You care about your money.

You work hard for it, so you want it to work for you.

In order to do that, and to accomplish your financial goals, it’s a good idea to invest wisely, and to turn to a financial advisor to make sure your investments are working to their optimal capacity.

It's one thing to invest, it's another thing to invest to your full potential - the average person can easily miss tax breaks and strategy flaws without knowing.

But don’t expect to get solid financial advice at the water cooler, local bar or from a friend or relative. Not to discount the valued opinions of those you know, but a full-time, fee for service financial advisor is your best bet to handle your money. When it comes to choosing a financial advisor in Perth, there's no shortage of options; there are literally hundreds, if not thousands, out there to choose from. Just finding one that you feel comfortable with from a distance can seem like hard work...

The thought of choosing a financial advisor can cause you stress and worry - you don't need another thing in your finances to worry about. That's the reason why you go to see a fee for service financial advisor in the first place.

If you're wondering how you’ll know the right advisor for you, we've prepared a short blurb on what to expect from your financial advisor in Perth.


Financial Advisor Perth Fees

One of the most common questions that gets asked when it comes to fee for service financial advice is, what fees are involved? While this is an important consideration, it's different for everyone.

Old School Financial Advice Fees

Whereas some old school advisors still try to work out fees based on percentage of assets (e.g. 1% of $500,000 assets = $5,000), most good financial advisers have moved away from this model and are now what we call fee for service financial advisers, which is typically a flat fee based on the amount of work involved.

New School Financial Advice Fees

The financial advice industry has changed a lot over the years, even in the last few. It's no longer very common for financial advisors to receive big payouts for products or services that they provide. On the one hand, this has forced the industry to restructure all fees or payments up front.

The fee for service movement has made it much easier for everyday people to understand the fees they are paying for their financial advice.

At Financial Framework, transparency is one of our strongest values and we adopted the fee for service movement long before it became popular in the financial advice industry. We provide a free initial consultation to all new prospective clients to see whether we can help you and whether you'd like to work with us. In this initial meeting we're able to give you an accurate estimate of the work involved in providing expert financial advice tailored to your situation. You can easily reach out to arrange one of these free initial meetings via phone, contact form or our chat at the bottom right of the page.

You might be wondering what else you should know to find the best financial advisor in Perth for you.


They Must Be Certified

First off, it’s important to make sure your advisor is actually certified to do the work you will ask him or her to do.

The services of a licensed financial advisor or financial planner can include:

  • Budgeting for a new home or other savings.
  • Planning for superannuation and retirement.
  • Estate planning.
  • Insurance.
  • Taxation.
  • Self Managed Super Funds Perth
  • Other investment decisions.

In Australia, for instance, in order to give advice in these areas, the advisor must be licensed by ASIC, the Australian Securities and Investments Commission, or be an authorised representative of an organisation licensed by ASIC.

In fact, ASIC provides a financial advisors register where you can check the status of an advisor. So if you search “financial advisor Perth”, for instance, you can insert the name you find into the register to ensure they are licensed.

Avoid working with an adviser who is not operating under a licence. You and your money won’t be protected if something goes wrong.

Here at Financial Framework, we are licenced by Synchron, and each of our advisers is a member of the Association of Financial Advisers (AFA).


Find A Fee For Service Financial Advisor in Perth

Once you understand whether the adviser is licensed or not, one of the next most important things you should be asking is, are they a fee for service financial advisor. The reason why you should know this, is so that you know what you're paying! Without understanding the fees that are being paid, you'll have no way to understand the value that you are receiving. In today's day and age, most financial advisors will be fee based, especially the newer practices. If you want to know more about fees, have a look at our blog on Choosing a Financial Adviser.


They Must Explain How They Work

It’s best to understand exactly what the advisor will do and how they will get paid, and they need to do the work to ensure you understand.

That means your advisor should clearly explain the value they will bring to your relationship and the process they will use to determine investments and assess value. You should receive an investment policy statement or a financial services guide that outlines the relationship, including measures of success.

At Financial Framework, we also have a document we call our Corporate Profile, this details our fees for service and what you will receive when you become a client.

The advisor should also clearly explain how they will get paid. For instance, a fee-based financial advisor could have a fixed fee for a service, an hourly fee, an account management fee, or other way to charge a fee in exchange for their service.

You should clearly comprehend how the advisor will direct the performance of your investments and how the risk will be calculated and managed. You should also know what to expect in terms of statements, portfolio reviews and other forms of communications.


They Must Spend Time Getting to Know You

A financial advisor should be a partner in your investing. It isn’t a one-time deal, it’s the start of a relationship.

In that regard, the advisor needs to collect a lot of information from you at the outset.

That includes:

  • Collecting information on your financial resources, debts and assets, including any other existing investments.
  • Documenting other relevant information such as occupation, marital status and dependents.
  • Discussing and establishing your financial goals and priorities.
  • Determining your timeline for investing.
  • Establishing your risk tolerance.
  • Discussing other information such as insurance, taxes, estate and wills.

A good fee based adviser wants to know who you are, where you are, and where you want to be.

And the relationship doesn’t end after that initial information gathering. A good advisor stays in touch with you, to update you on the performance of your portfolio, and gather any updates they need about you. After all, a major life event, like having a baby, or deciding whether to pay off a mortgage, could change your financial needs.


They Need To Provide a Plan and Continue to Discuss It With You

While managing your investments is a big priority for your advisor, it’s about more than that. They need to think about your entire financial framework.

That means building a plan for your current situation, and then constantly reviewing that plan with you to ensure it can adapt as needed. It also means ensuring you understand the plan and have a part in shaping and adapting it.


They Must Be Proactive

Your advisor should be just that – an advisor. That means staying in touch with you on a regular basis, to discuss performance of your plan, as well as any changes to your life, and any necessary changes to your plan.

You shouldn’t have to be the one to constantly reach out to your advisor. Your money is too important for a part-time relationship. That doesn’t mean weekly calls, but it should mean regular check-ins (especially if they know there are important events happening in your life) and it definitely means your questions must be answered when you contact your advisor.


Final Thoughts

It may seem scary to look for a fee for service financial advisor in Perth, and trust that person and their organization to invest your hard-earned money.

But planning and investing wisely is the best thing you can do for yourself, your family and your future. Now that you know what to expect from your financial advisor, the choice will be easy.

Financial Framework are a fee for service financial advice company based in Perth. We pride ourselves on our ability to build meaningful and personal relationships with our clients over the long term and support our clients through life’s many changes.

Contact us today through the chat function or use our contact form to book your complimentary first appointment.

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