| Competent financial advisors do not have a particular | | | | The second avenue of enquiry relates to payment for |
| look about them, even if they claim to have proof of | | | | services. This question is important as financial planners |
| their ability. To protect yourself, it is important to ask | | | | can bill hourly, work for retainer and some work on a |
| the kind of questions that will indicate whether the | | | | commission basis. Each of these payment channels |
| potential advisor has the requisite level of skill to handle | | | | attract differing fee levels, and this information will |
| your financial affairs, or whether you should look | | | | influence your choice of financial advisor. It pays to |
| elsewhere. The following simple questions will help you | | | | know up front. |
| determine if the advisor under scrutiny can really help | | | | Another excellent gauge of success and ability is |
| with your financial affairs. | | | | testimonials, and in particular referrals. If the financial |
| The first enquiry you should make relates to education. | | | | planner you are considering cannot provide referrals |
| Competence and quality with advisors comes in the | | | | you should be sceptical about any claims about past |
| form of a relevant tertiary education, professional | | | | success they may make. The opinions of previous |
| memberships of financial advisory groups, and | | | | clients are excellent indicators of the ability of a |
| certificates or further qualifications that show ongoing | | | | financial planner. |
| professional development. It is also important to enquire | | | | Finally, ask for a plan. Any financial advisor worth their |
| about length of experience in the financial industry, and | | | | fee will happily outline the scope of their services, tell |
| in particular how long the individual has been working | | | | you what information you need to provide them, and |
| as an advisor. This should be considered the first step | | | | work with you across all relevant areas to develop a |
| in your financial advisor selection process. | | | | plan for you to reach your financial goals. |