What to look for in an advisory firm
A financial planner is not a one-time support agent. They provide you with ongoing support over a lifetime and guide you through a variety of different financial areas that you will no doubt encounter and have questions on. Before you reach out to a financial planner, ask yourself, “What should I be looking for in an advisory firm?”
Here are our six points for when you are seeking out a financial planner for the first time:
1. The Relationship
Your financial planner will:
- Clearly explain or document the services we provide
- Define the responsibilities of the planner and the client
- Agree how long the professional relationship is expected to last
- Explain in full about payment terms and how the payment is derived
2. The Data
Your financial planner will:
- Ask for information about your financial situation
- Mutually define your personal and financial goals
- Understand timeframes for the results
- Discuss how you feel about risk (if relevant)
- Gather all necessary documents before giving you advice
3. The Analysis
Your financial planner will:
- Analyse your information to:
– assess your current situation
– determine what you need to do to meet your goals - Analyse your asset liabilities and cash flow, current insurance coverage, investments or tax strategy (depending on service chosen)
4. The Recommendations Your financial planner will:
- Offer financial planning recommendations that address your goals, based on the information you provide
- Go over the recommendations with you, so you can make an informed decision
- Listen to your concerns and revise the recommendations appropriately
5. The implementation
Your financial planner will:
- You will both agree on how the recommendations should be carried out
- Your financial planner will EITHER
– implement the recommendations
– OR serve as your coach coordinating the whole process with you and other professionals such as accountants, solicitors, lawyers or stock brokers
6. The Monitoring
- You and your financial planner decide who will monitor progress towards your goals
- If the planner is in charge they will report to you at agreed intervals to review your situation and adjust recommendations as appropriate and as
life changes