5 Mistakes Commonly Made when Hiring a Financial Planner
Announcement posted by Approved Financial Planners 30 Mar 2015
Perth financial planners provide resource to help consumers avoid crucial mistakes when hiring a financial planner.
Perth, WA, 30 March 2015 - In the Perth area, there are a plethora of financial planners and financial planning firms. While this provides consumers with a lot of choices, it can also put them at risk for financial loss if they pick the wrong financial services provider. A Perth financial services firm, Approved Financial Planners, recently published a guide to help consumers choose a financial planner that is right for them.
The guide is called, “Choosing a Financial Planner: 5 Crucial Errors to Avoid.” The guide provides information for those those looking for a financial planner for the first time or those who want to change financial planners. It lists five avoidable errors that can cost consumers money in the long term.
Five Errors: a Summary
The first avoidable error is a failure to conduct “due diligence.” Approved Financial Planners recommends checking the track record of prospective financial planners and their firms. In addition to track record, they suggest honesty, integrity and resources as important factors.
The second error is confusing salesmen and share brokers with financial planners. A financial planner’s job is to consider a client’s entire financial situation and create a “roadmap” to achieving their goals. A share broker or salesman’s job is to sell financial products such as shares. Share brokers and salesmen don’t take a customer’s financial situation into account. This can result in losses if the product isn’t right for the client’s financial needs.
The third error is not checking to see whether or not a financial advisor has been investigated or punished for misconduct. The Australian Securities and Investment Commission (ASIC) allows consumers to use their website to verify whether or not a financial advisor has ever been disciplined by ASIC.
The fourth error is choosing the financial planner who charges the least. They feel that the quality of financial advice far outweighs cost as a determining factor when hiring a financial planner.
The fifth error is not knowing a financial planner’s level of experience and expertise. They recommend investigating and interviewing numerous financial planners if necessary to ensure finding one that fits the client’s individual needs.
Daniel Stevens has a wealth of experience helping clients in the Perth area achieve their financial goals. He is a financial planner at Approved Financial Planners. According to Mr Stevens:
“Over the years, a lot of our business has come from people who weren’t satisfied with their previous financial planners. Some were nearly ruined by incompetent financial advice. In these cases, we ask how they chose their financial planners. Many said they listened to friends or chose the financial planner with the lowest price. While both of these strategies can occasionally succeed, the odds are much more in your favour if you use proven criteria to select a financial planner.”
Approved Financial Planners is located in the Perth area. Their financial planners provide comprehensive financial services, including wealth protection, mortgage broking and retirement planning to clients in the Perth area. Their financial advisors have amassed more than 80 years combined experience, making them one of the most experienced financial planning firms in Perth. For the full version of their guide or to learn more, call 1300 787 274 or visit their website: http://www.approvedfp.com.au/.
Approved Financial Planners ABN: 52 116 910 528 and Daniel Stevens are Authorised Representatives and Credit Representatives of AMP Financial Planning Pty Limited Australian Financial Services Licencee and Australian Credit Licencee
General Advice Warning
What you need to know
Any advice contained in this Page is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters
The guide is called, “Choosing a Financial Planner: 5 Crucial Errors to Avoid.” The guide provides information for those those looking for a financial planner for the first time or those who want to change financial planners. It lists five avoidable errors that can cost consumers money in the long term.
Five Errors: a Summary
The first avoidable error is a failure to conduct “due diligence.” Approved Financial Planners recommends checking the track record of prospective financial planners and their firms. In addition to track record, they suggest honesty, integrity and resources as important factors.
The second error is confusing salesmen and share brokers with financial planners. A financial planner’s job is to consider a client’s entire financial situation and create a “roadmap” to achieving their goals. A share broker or salesman’s job is to sell financial products such as shares. Share brokers and salesmen don’t take a customer’s financial situation into account. This can result in losses if the product isn’t right for the client’s financial needs.
The third error is not checking to see whether or not a financial advisor has been investigated or punished for misconduct. The Australian Securities and Investment Commission (ASIC) allows consumers to use their website to verify whether or not a financial advisor has ever been disciplined by ASIC.
The fourth error is choosing the financial planner who charges the least. They feel that the quality of financial advice far outweighs cost as a determining factor when hiring a financial planner.
The fifth error is not knowing a financial planner’s level of experience and expertise. They recommend investigating and interviewing numerous financial planners if necessary to ensure finding one that fits the client’s individual needs.
Daniel Stevens has a wealth of experience helping clients in the Perth area achieve their financial goals. He is a financial planner at Approved Financial Planners. According to Mr Stevens:
“Over the years, a lot of our business has come from people who weren’t satisfied with their previous financial planners. Some were nearly ruined by incompetent financial advice. In these cases, we ask how they chose their financial planners. Many said they listened to friends or chose the financial planner with the lowest price. While both of these strategies can occasionally succeed, the odds are much more in your favour if you use proven criteria to select a financial planner.”
Approved Financial Planners is located in the Perth area. Their financial planners provide comprehensive financial services, including wealth protection, mortgage broking and retirement planning to clients in the Perth area. Their financial advisors have amassed more than 80 years combined experience, making them one of the most experienced financial planning firms in Perth. For the full version of their guide or to learn more, call 1300 787 274 or visit their website: http://www.approvedfp.com.au/.
Approved Financial Planners ABN: 52 116 910 528 and Daniel Stevens are Authorised Representatives and Credit Representatives of AMP Financial Planning Pty Limited Australian Financial Services Licencee and Australian Credit Licencee
General Advice Warning
What you need to know
Any advice contained in this Page is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters