The last few years have had everyone thinking about what’s important in life. It also got some people wondering if they needed to shop around for a financial adviser who could help them to invest for the future. If that’s you, don’t rush in. First read our interview with Elston Strategy Adviser Dean Ireland and see what he has to say about choosing an adviser.

QUESTION 1- What prompts people to start their search?

At the moment, with the market going through a major correction, people are rethinking their current strategy and wondering if there’s someone out there who can help them to reposition their investments. If they have been in a pooled fund, they’re probably wondering if there are alternatives that can give them greater control of their capital. If they have a self-managed super fund that’s been on auto pilot for a while, they might want to seek out a more active investment approach.

QUESTION 2 – Are there other triggers?

The other things that can often trigger action are movement of money, a big birthday, or a bit of a nudge from a family friend.

Movement of money can be something big like an inheritance, or a divorce that divides your assets. Another trigger can be the day you finally get to sit down as a couple, look at your finances and realise that your savings have started to build up nicely, but they’re not earning very much.

Birthdays can prompt all sorts of behaviour change from fitness kicks to marriage plans. Of course, when the candles start to outgrow the birthday cake, many people start to think about the fact that their retirement is maybe only 15 years or so away.

The third thing that often stirs you into action is a family member telling you to talk to someone about money. It might even be that they’re recommending that you see their adviser.

QUESTION 3- How do I choose between different advisers?

There are three questions you should ask.

1. What are your qualifications? You want to know that they’re FASEA qualified. Also, are they a Certified Financial Planner? If they are, they’ll have CFP after their name. Check the adviser register if you’re not sure.
2. How passionate are you about financial planning? Passionate advisers will work hard to meet the new education requirements. Other advisers will walk away in the next four years. Where could that leave you?
3. Are you part of a team? Find out about their business and ask who the licence is. This could highlight any potential conflicts in advice you might receive.

QUESTION 4- What’s the key to a good relationship?

You need trust. And that trust is based on good communication. Clients need to know that their needs are understood and that those needs are driving every decision. If you don’t have that, you’re never going to have a good long term relationship. A lot of trust will need to be placed in your adviser and the strategies they recommend. They are there to help you navigate the different financial stages of your life; however, if you don’t feel as though they understand your personal circumstances, values and goals, this trust can become difficult to maintain through the ups and downs of investing.

QUESTION 4- Is going it alone an option?

It is an option. Ultimately, if a person feels they have the understanding required to develop and manage financial strategies for themselves then they may not need an adviser. I think the people that get the most out of working with an adviser are those that take the time to understand the investment strategy, trust the specialised analysis and get that it’s about sticking to a long-term plan. They’re the ones who are able to move forward with confidence.

QUESTION 5- Can I shop without buying?

Absolutely. Talk to advisers who are happy to have that initial chat with no obligation. At Elston Private Wealth all our advisers are here to help. Pick up the phone and ask any questions you like. We know that if we can arm you with the information you need, you’re going to feel better about making a good decision when you’re ready.

Dean Ireland ^{CFP, SSA}
Elston Strategy Adviser