Choosing a financial planner
To decide if you need a Financial Planner simply ask yourself:
- Am I minimising my tax liability?
- Will I have enough money in retirement?
- How much money will I need in retirement?
- Is my super fund the right fund for me?
- Should I set up a Self Managed Super Fund?
- Is my family going to be financially protected from any medical problems?
- Should I be investing through a trust?
- Will I have enough money to cover my children's school fees?
- Do I know which products to invest in to maximise my returns?
- Have I diversified my investments effectively to ensure my risk is minimised?
- Can I pay off my mortgage any quicker?
- Should I be directing all my excess savings towards paying off my loans?
- Have I structured my income and assets to maximise any government benefits?
- If I leave my employment do I know how to minimise the tax on my payout?
- Am I maximising my net retirement income?
- Will my loved ones be provided for after I've gone?
If you cannot confidently answer any of these questions, you may need a financial planner.
How to choose a financial planner?
Under the new legislation, only those financial planners with an Australian Financial Services License (AFSL) or financial planners who are an authorised representative of an AFSL holder can provide financial services. This includes a recommendation or opinion which either influences you to make a financial investment using a financial product or the provision of a financial product.
When choosing a financial planner, it may be sensible to make the following considerations:
- Has your financial planner got an Australian Financial Services License or become an authorised representative of an AFSL holder?
- Is your financial planner independent from any financial institution/s such as a fund manager, bank, insurance company or trade/credit union?
- Does your financial planner hold a Certified Financial Planner status which is the internationally recognised symbol of excellence in financial planning?
- Is your financial planner a Chartered Accountant, who is keen to minimise your tax legally while maximise your wealth.
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