Growing your wealth isn’t a DIY project. Unless you have plenty of time and energy to focus on wealth management, your best option is to hire a financial adviser and let them do the leg work on your behalf. However, different advisers bring different things to the table; some have better skills and expertise than others and can manage your investments in a better way than their peers. Because of this, you should separate the wheat from the chaff and find a financial adviser who can provide you with the best possible results. Start the search by asking these questions:
Are you fully qualified?
Financial advisers in Australia are required to have at least a bachelor’s degree or an equivalent qualification, and they should pass the Financial Advisor Examination conducted by ASIC and complete a year of practical training. They also have to comply with continuing professional development requirements, which include getting at least 40 hours of training technical competence, client care and practice, professionalism and ethics, and regulatory compliance and consumer protection. Find out if your adviser has complied with all of these requirements, and don’t hesitate to ask for proof.
What’s your preferred fee structure?
Financial advisers get paid in different ways. Some charge a flat fee or an hourly rate, while others ask for a percentage of the assets that they manage. Still others earn an income through transaction fees. Ask your adviser what their preferred fee structure is, and don’t hesitate to compare their rates with those of other experts to know whether they’re charging reasonable prices or not.
How many clients do you have?
Generally, having many clients shows that a financial adviser is well-regarded in the industry and that they know how to deliver great results. But remember that an adviser’s time and energy aren’t infinite, which means that there should be a limit to how big their customer base is. If they accept more clients than what they can reasonably accommodate, they’ll have limited time to spend with each client and they can’t provide personalised services.
So how many clients should your financial adviser have? The answer differs from one expert to another, but on average, an experienced adviser can serve around 100 clients at the same time while still providing the best possible results. Take note that their client base can increase or decrease depending on their fee structure and service model as well as the number of people they have in their team.
What platform/s do you use?
Modern financial advisers rely on software to manage their clients’ wealth. Before signing up, ask your adviser about the programmes that they’ll use to manage your investments. Ideally, they should be using top-rated wealth management platforms in Australia that provide a wide range of investment options including annuities,term deposits, managed funds and portfolios, ASX listed securities, and international listed securities. Their software should also help them tailor portfolios based on specific client needs and reduce unnecessary trading costs for their clients.
How do you communicate with your clients?
It’s impossible to build a strong adviser-and-client relationship without open communication. When searching for a financial adviser, find one who proactively provides regular market updates as well as the latest investment guidance. Ideally, you should be able to reach them directly instead of having to book an appointment or speak with their assistant, and they should quickly respond to your emails, text messages, or phone calls.
Your financial adviser will play a huge role in your wealth management journey, so it’s important to find a reputable expert who will take good care of your investments and help you grow your hard-earned money.
