Hi, my name is Chris Magnus and I am a Senior Financial Advisor at Ark Total Wealth. Choosing the right financial advisor can make a big different to your life outcomes so it is important that you ask your prospective advisor the right questions both themselves personally and also about the business who they work for.
Your advisor should be representing you and your best interests, they should ideally hold their own Australian financial services licence. So it may be best to steer clear of advisors who are owned or licensed by big fund managers or investment companies.
You might want to avoid someone who in essence is a glorified managed fund or insurance salesperson for the fund manager or insurer who licensees them.
The scope of financial advice that your advisor is able to give is also important, does the prospective advisor give advice on and have experience in direct property, as well as shares and manage funds? Are they experience with different types of tax structures and understand the finer points of finance and lending. Even if you are not ready to go down the path of the full range of services that an advisor may offer you, you might need to in the future.
So it pays to have an adviser that has as much diversity in experience as possible.
So what level of financial education will be provided by your advisor, is also an important question. A good financial adviser will stagger the process over a number of meetings in order to provide you with education, context and background as to what your strategy entails, why it is the most suitable for you and what the benefits and risks are.
It’s also a good idea to ask your financial advisor how they invest their own money and whether they follow the same advice they are giving to their clients.
Do they have insurance? And invest in the same investment they are recommending?
A good adviser should be honest, upfront and transparent about this; they are asking you about your financial life so you should be able to ask them about theirs.
We have listed some further questions you can consider asking your prospective advisor on the page next to this and if you have any further questions please don’t hesitate to email us or give us a call.