Are you thinking about seeking ethical financial advice?
Well, before you commit and share your personal goals with a financial adviser, you may want to consider asking some questions to find out whether they are the right ethical financial adviser for you to work with.
But before we dive into that, there is one very important question you need to ask yourself:
“What kind of financial advice are you looking for?”
There are multiple service areas financial advisers can off advice within, such as:
- Ethical Investment
- Retirement Planning
- Superannuation Advice
- Financial Planning for Women
- Life Insurance
- Aged Care Financial Planning
- Estate Planning
Or maybe you’re seeking a holistic, comprehensive financial plan that handles all of the above?
Either way, Novo Wealth, Australia’s leading responsible financial adviser and ethical investment specialist based in Adelaide can help you.
With that in mind, you may want to think about asking the following questions to your potential financial adviser:
1. How Much Does Financial Advice Cost?
Financial advice fees can vary depending on the adviser you choose and the type of advice you want.
During your initial meeting with an adviser, they should provide you with a copy of their Financial Services Guide.
This document should contain an explanation of the fees they charge, the services they offer and how they deal with complaints. You can take a look at Novo Wealth’s Financial Services Guide from our licensee Futuro here.
This guide can be a great way for you to compare the costs between different advisers that you meet when seeking the right financial adviser suited to you.
It’s important to check upfront with the adviser on how much you’ll be charged. However, most financial advisers will disclose this information to you early on so they can distinguish whether or not financial advice is the best solution for you.
2. What Are Your Financial Planning Qualifications?
A financial adviser should be able to tell you what qualifications and how many years of experience they have.
This can provide you with a thorough understanding of what knowledge and expertise the adviser can provide you with through their advice.
You should check before you plan on working with an adviser that they are registered to provide financial advice. You can do this by searching their profile on ASIC’s moneysmart.gov.au Financial Advisers Register.
You can check out Paul Garner’s Financial Adviser Register Profile to find all his relevant qualifications and experience.
3. What Are My All-In and Ongoing Financial Advice Fees?
You want to make sure that you understand what all of the costs are associated with the financial advisor’s services.
While you might pay the advisor a fee each year, you should also consider any additional fees that you may need to pay if you purchase insurance, annuities or investments through your advisor.
You should also know that you might need to pay a fee to a third-party financial company if your advisor recommends a financial product or service of that company.
A good financial adviser should be completely unbiased and independent and should be completely transparent and up-front about all fees involved.
4. What Is Your Investment Philosophy?
An investment philosophy is essentially a set of beliefs about how to invest. In general, you want to find an adviser who has a philosophy that matches what you are looking for.
An investment adviser will be able to help you structure and manage your investments through market cycles, however, it’s important to ensure that your beliefs align with that adviser.
You may be seeking an ethical investment adviser, who can develop strategies to invest responsibly and optimise your earning potential, especially with ethical investment in super.
5. What Are the Tax Implications I Should Expect When I Invest?
A financial adviser should help you understand how much the investments you choose will cost you from a tax perspective.
Your adviser should answer questions, such as how much of your investment will be taxed and whether your investments will be subject to any state or federal taxes.
Some investments, such as municipal bonds, will not be taxed by the federal government, but you should still expect to pay tax on your investments in general.
An expert financial adviser can help you to structure your investment portfolio from a tax perspective and to reach your ethical and financial goals.
Are You Seeking Adelaide-based Ethical Investment Advisers?
A financial adviser should be someone you can trust and rely on for all things money. So with all these questions, we hope that you’ll be able to find an adviser that will be able to help you achieve your financial goals.
Novo Wealth helps business owners and professionals who want to responsibly and mindfully invest by providing ethical financial advice in Adelaide. Let us help you reach your financial goals through tailored financial planning.