Five questions to ask a financial planner at your first meeting

Financial advisers can help you earn or save tens of thousands of dollars, and choosing one doesn’t have to be a daunting experience if you ask the right questions.

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Financial planners copped plenty of criticism in last year’s banking royal commission report, but a good adviser can be worth their weight in gold.

Advice around investment, tax strategies, retirement planning and life insurance will potentially save or earn people tens of thousands of dollars, and the first meeting with a planner can be daunting.

It’s a good idea to bring a list of questions with you, says ASIC’s MoneySmart senior executive leader, Laura Higgins.

“Ask about their background, the services they offer and how they’ll communicate with you,” she says.

“Not all financial advisers offer the same services and you want to make sure they can provide the expertise you’re looking for.”

ASIC’s MoneySmart senior executive leader, Laura Higgins, said it's a good idea to come go to your financial planning appointment with a list of questions. Picture: Supplied

Moneysmart.gov.au has a list of questions you can ask, and so do some advice and investment firms’ websites. Some advisers will send you a questionnaire before that initial catch-up, but it’s wise to come prepared with your own queries too.

Here are five key questions to ask:

1. WHAT DO YOU CHARGE?

“Financial advisers don’t usually charge you for the first meeting, but it’s important to check before you go in,” Higgins says.

If you sign up with them, advisers may charge flat fees or hourly rates, and some still charge percentage-based fees, although these are being phased out.

2. WHAT ARE YOUR QUALIFICATIONS?

Marinis Financial Group managing director Theo Marinis says you should ask how long they have been an adviser, their qualifications and experience.

“Ask to see some testimonials or check on their website,” he says.

Marinis Financial Group managing director Theo Marinis says you should ask how long they have been an adviser, their qualifications and experience. Picture: Supplied

3. HOW WILL OUR RELATIONSHIP WORK?

You need to feel comfortable sharing personal information, and understand how often you’ll meet, receive communications and be consulted.

“The first appointment is to get to know each other, and whether it’s a relationship in which we are able to work together,” Marinis says. IF all goes well, you'll be working together for years.

Because of this, Marinis recommends shopping around: “Speak to two or three, ask them the same series of questions and deal with the one you think is most appropriate for you,” he says.

4. DO YOU RECEIVE COMMISSIONS OR INCENTIVES?

Some advisers get paid to recommend financial products or for referrals.

You want to know that your financial future is their main priority, so ask how they will choose the products that they recommend to you.

5. HOW DO YOU HANDLE COMPLAINTS?

Hopefully nothing goes wrong, but if it does you should know their processes for dealing with unhappy clients. Moneysmart.gov.au has detailed information about what to do about problems with a financial adviser.

@keanemoney

Originally published as Five questions to ask a financial planner at your first meeting