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Who needs a Financial Adviser? Whether we like it or not, there is no escaping the fact that money will play a role and indeed have an impact in our lives. We live in a consumer society that tells us yes you need to buy a house, a car, get a mortgage, buy an investment property, have a great superannuation fund, buy some shares, oh and yes, would you like fries with that? It is a dense jungle lurking with potential financial dangers, challenges and pitfalls. Naively, the majority of people will attempt to tackle this jungle on their own with very little if any financial education or experience. It is alarming to note that most will not consider getting some guidance or constructing a sound and strategic map to help them get to where they want to go. Just as alarming, they will not employ an experienced and trained guide to help them navigate the pitfalls and dangers and get them to their final destination safe and sound. With that in mind is it any wonder that most people will struggle financially? What will be the cost of navigating this jungle alone? It is estimated that 95% of Australians will retire on an income that is considered insufficient or less than $25,000 a year. There is a better way, and good financial advice is the key. So Who Needs an Adviser? This is an important question and I think the best place to begin this discussion is to look at the different groups of people that exist. There are many ways we could categorise people financially. There are people who would be considered low, medium or high income earners. There are young adults at the beginning of their working careers and those coming to the end of their?s. There are people that have very little in the way of assets and financial security, and there are link building for small business those with great wealth, control and financial freedom. The funny thing is, regardless of our stage of life we would all dramatically benefit from a solid financial plan and sound financial advice. But isn?t financial planning reserved only for the wealthy? I hear you ask. The simple answer to that question is a resounding NO. Sure, in reality the overall majority of people likely link building service to be utilising financial advice may be wealthy. The question I pose to you is: How do you think they became wealthy in the first place, and secondly how do you think they manage to stay wealthy? It is through constant visioning and setting goals with trusted advice along the way. A long term commitment portable stage to planning and reviewing is the primary difference between the financially successful and the rest. Using the previous jungle analogy you should clearly understand both the need and importance of a map (financial plan) and a guide (financial adviser). As mentioned, most people lack good financial knowledge and experience. There are far too many potential pitfalls for an everyday individual to know and understand all aspects completely. Budgeting, investment planning, superannuation, share market, real estate, retirement planning, social security, taxation, personal insurance, estate planning and the list goes on. A financial adviser is needed to educate and bridge this gap in knowledge. They will also support, motivate and provide direction. A good adviser will give you the best possible chance to succeed and achieve your chosen goals and desired outcomes as well as survive the financial jungle and the journey. In the past, specialised advice came from different sources such as accountants, stock brokers, lawyers, insurance agents and other financial professionals. The quality of advice was at best niche or highly specialised and at worst questionable. In 1997 an inquiry*was conducted and it was found that regulations at the time were insufficient for financial products and services. This lead to the introduction of the Financial Services Reform Act, which aimed to improve the industry and solve the most pressing issues by: ? Bringing various financial services and products under one licensing regime. ? Establishing a standard of conduct for service providers. ? Introducing a new disclosure regime for most financial products. The Australian Securities and Investment Commission (ASIC) is the body re current financial position, help you get clear about your financial goals and highlight any issues you may be currently facing that may prevent you from achieving those goals. In essence they will become your financial coach. sponsible for regulating and administering legislation regarding the financial services industry. By law a financial adviser must have a license or must be an authorised representative of an institution with a license in order to provide financial advice. The role of the Adviser A Financial Adviser?s role is to work closely with you to understand yourThink of any athlete or sporting team that has achieved success and you realise that, behind them there is almost always a great coach guiding them and pushing them towards success. More specifically, a good financial adviser is also able to help you: ? Identify and highlight your financial goals as well as give you the guidance and direction to achieve those goals. ? Help identify all of your financial resources and help you to utilise those resources to get the best possible result whilst maintaining an acceptable work/life balance. ? Prepare for important lifestyle or financial changes such a having children, buying a house or retiring. ? Grow your income and investments. ? Protect your income investments and financial position. ? Simplify investing and wealth creation whilst giving you choice. ? Provide ease of mind and security with your current and future financial situation. ? See the big picture and help manage your finances on a whole wealth level.

The Financial Planning Process In short, the financial planning process can be broken down into 7 simple steps: 1. Gather financial information and data An adviser will obtain relevant financial information such as assets and liabilities, income and expenditure as well as your attitude toward risks. 2. Identify a client?s goals and objectives What you want to achieve and when you want to achieve it. Your vision for the future. 3. Identify any financial issues Once an adviser has gathered financial information and has an understanding of the client?s goals and objectives, they can identify any issues and barriers. 4. Develop a financial strategy A strategy will be developed and discussed with all the necessary fine tuning required. This is an important step in the process and a good adviser will make sure it happens as it allows the process to be interactive rather than dogmatic. 5. Provide a Statement of Advice (financial plan) Once strategy has been agreed to link building it will be provided in the form of a ?Statement of Advice? which outlines the agreed course of action. 6. Implement the Plan/Recommendations The written plan is agreed upon and implemented 7. Review, revise build links and maintain the financial plan The plan and strategy is reviewed to ensure it is still meeting a your financial needs and investment goals. This last step is the most important part of the process. Many a good plan has fallen by the way side through a lack of proper review, apathy and lack of commitment on the behalf of both adviser and client. A proper review involves much more than a discussion of how your portfolio has performed over the last year. Find an adviser with a commitment to a comprehensive review process and you will have found a great adviser! Benefits There are many areas that stand to benefit from a sound plan and good advice. I think that you will agree they are not topics that should be left to chance: ? Budgeting ? Investment Planning ? Gearing ? Mortgages ? Fund manager selection ? Superannuation and Retirement Planning ? Social Security ? Tax Minimisation ? Personal Insurance (life, trauma and income protection) ? Estate Planning ? Wealth Creation Ongoing Relationship Maintaining an ongoing relationship with your Adviser is critical. As your guide they join you on your journey towards your financial dreams. A good financial adviser should be able to give you support and answer any questions that may arise along the way. Once again, drawing on the comparison of the relationship between a top athlete and their coach we can see the journey travelled and the success achieved is made possible only by the combined and focused efforts of both parties. It is also important to understand and remember that the financial environment is always subject to change, as the rule books are always being revised and re-written. It may be important, if not crucial, in some cases for a change in strategy to take place if a particular event occurs or a new law is passed. Detailed and regular reviewing is key and if maintained, both parties may be able to act swiftly and promptly to ensure ongoing, lasting success. As the Chinese proverb says ?The only constant is change?.

Things to consider before choosing a Financial Adviser Current Financial Situation A good first step before seeking any financial advice is to first examine and understand your current financial situation. What resources do you currently have? Do you know what your income and expenses are? How about your assets and liabilities? These are effectively the 4 items that make up your ?financial report card? so to speak. Your financial adviser will want to see a copy of your financial report card. In addition, what investment timeframes would you consider and how do you feel about you work/life balance? This is the foundation upon which your goals and wealth creation will be built. Any good adviser should be able to examine the sum total all of your financial resources. He should then customise and devise a strategy that not only meets your particular goals, but more importantly also allows you to achieve the most you can possibly achieve with those resources. Goals, Objectives and Dreams Knowing our goals and dreams and writing them down is an important step before the planning process takes place. It helps for two reasons. Firstly, you will be forced to clarify what it is you truly want, and also why you want it. This in itself carries great power and it will give you the drive you need to follow through and make it happen. Secondly, it will allow your adviser to get a clearer understanding of what your intentions are, allowing them to devise and formulate the most suitable plan to get you there. Without clear goals we lack direction, and run the danger of accepting what life hands us or just ?go with the flow?, as some describe it. Investment Time Frames Gaining a good understanding of your investment time frames is important and will help your adviser develop a plan and utilise products that match your intended time frames. If, for example, you only wanted to invest for 1 year, it may not be the most viable option purchasing an investment property. A better solution instead may be moving into a cash management fund or fixed interest investments. Some advisers will define these time frames in the following way, Short term 1-2 years, Medium term 3-5 years, Long term 5 years plus. However for others 10 years is considered short term, 20 years medium term and lifetime is considered long term. Either way, it is important for you first to develop your own idea in relation to time, but at the same time your adviser can instruct you in this area. Don?t be surprised if your adviser guides you toward a longer period so as to decrease the impact of volatility and risk in your plan.

Making an informed selection By now you should have a basic understanding of the financial planning process and you will have prepared and equipped yourself to take the next step. It is time link building services to find a financial adviser that is best suited to assessing your needs and helping you achieve your goals. There are many possible avenues to explore to find a good financial adviser. One good place to start is to speak to family and friends to see whether they use an Adviser or whether they know of someone they could recommend. Recommendations from other professionals such as accountants may also be worth obtaining. Referrals such as these are normally a good place to start. What to look for The most important thing to look for when choosing a financial adviser is whether or not they have a financial services license (AFSL) or are an authorised representative of someone with a license. Most representatives and small planning firms will fall under the license of a large financial institution such as a bank, and what they can advise on is tightly controlled by those institutions. That is the main reason why the majority of financial planners do not advise on investment property strategies. Smaller firms with their own AFSL have much more flexibility in their recommendation process and are not bound by such restrictions. In any event, the most important thing is not to deal with somebody without a license. The Australian Securities and Investment Commission are responsible for all licensing within Australia. You can ascertain whether a prospective adviser has a license by contacting ASIC on 1300 300 630, or by visiting there website www.fido.asic.gov.au Traits that are common amongst all good sporting coaches will also be found in good advisers. A person with good knowledge in their field, who will motivate, seek new information, educate, listen, communicate effectively, inspire, empower, display commitment and patience, emphasise goals and above all else, help achieve results that may have otherwise been unobtainable. These are the traits of the best sporting coaches as they are of the best financial advisers.

Interview Process During an interview with a potential adviser it is important for you to remember that you are in charge of making any decisions. Do not allow anyone to force or pressure you into doing anything that you do not feel comfortable with or don?t understand. It is important for you to understand that you will be hiring them to do an extremely important job for you, so you must ensure you are completely comfortable with the person you choose. Use the list of prepared questions you have and listen to their responses. If you don?t understand something ask them to explain. Questions to prepare The following is a list of suggested questions you may wish to ask a potential adviser: ? Do you have a current financial services license? ? What is your level of experience and qualifications? ? What type of clients do you normally advise? ? How do you charge for your services? ? What are your areas of specialty? ? Do you advise on institutional type investments only, or are you able to also advise me on direct investments such as direct property? ? What level of control do you take in regards to the overall process, and how much do you get involved in the implementation phase? ? How do you do your research and how do you keep up to date professionally? ? How do you choose investment managers? ? Do you have professional indemnity insurance and who is your insurer? ? How do you maintain an ongoing relationship? ? What makes you different to other financial advisers? Try to control the flow of the conversation where possible, as you are more likely to get the answers you are seeking than to get a sales pitch. At this point, you should also be provided with a Financial Services Guide (FSG). You may need to interview more than one person to establish whether they are the most suitable to work with you. Cost involved DiamondLinks.net The final aspect in comparing potential advisers is price. By law, all advisers must disclose all forms of payment, upfront or ongoing fees, and commissions. Many advisers will charge using one or a combination of these methods. When comparing, it may help to get an example to help you understand the implications of the different methods. Potential advisers should be able to go through and explain these payments. One thing that may be worth noting is that some advisers will refund any commissions given to them by product suppliers, instead opting to charge a fee. In any event, it is important to consider all of these aspects as well as reading all Financial Services Guides before choosing a potential adviser.

Making your selection After you have sorted through all the data as well as considered the individual advisers approach and skills, you are ready to make your final choice. You should now be able to Fresno Lawyer make a well informed and confident selection and be assured that you have given yourself every chance to succeed in choosing a suitable financial adviser. Good Luck! financial advisor