Financial planning is about helping you achieve your financial and lifestyle
goals and objectives. It is a specialized area of advice, structured around a
process that focuses on you, the client. To determine the appropriate advice for
you, The Salisbury Group Advisers follow a stepped process designed to ensure
that the advice you receive is tailored to your needs and situation and is
specific to assisting you to achieve your goals.
The steps that the Adviser will work through with you:
Step 1:
your current lifestyle and financial position –the “Where
are you now?” information that is your starting point;
Step 2:
your financial and lifestyle goals and objectives – this is
the “What to you want / where do you want to be?” – it is your statement of
your ambitions. Our Advisers can help you put your goals into words,
prioritise them and if necessary work out how much each will cost.
Step 3:
The next
step is to identify any financial issues you may have which hinder you in
attaining your goals. Your Adviser will consider how to address any issues to
enable you to move forward towards attaining your goals.
Step 4:
Once the Adviser has the information in Steps 1, 2 and 3, a
Statement of Advice will be written for you. This document is your financial
plan and is written just for you. It will outline the strategies that the
Adviser recommends that you undertake to help you to attain your goals.
Step 5:
Your adviser will work through the Statement of Advice with
you to ensure that you understand the recommendations and what the expected
outcomes of these will be. Once you are comfortable with this advice the
Adviser will work with you to implement the recommendations.
Step 6:
Financial planning is not a “set and forget” process. Over time, your life
will change, your goals will change and investment markets and options will
change. A vital part of successful financial planning is reviewing your
position regularly and modifying your plan as necessary to reflect any
changes.
These Steps are the financial planning process. By working through the Steps
with an Adviser, financial planning can help you focus on your financial goals
and objectives by outlining strategies to help you to:
Accumulate wealth
Protect yourself, your family and your assets
Maximise your superannuation savings
Ensure that you optimize your income in retirement
Help you plan your estate so that your loved ones are looked after
Like all journeys, financial security also starts with the first step. Contact a
Salisbury Group Adviser today.
How do I choose a Financial Adviser?
When you work with a financial adviser you will develop a close professional
relationship. On a professional level, you should ensure that your adviser is
properly qualified and licensed to provide you with the advice you are seeking.
On a personal level, your adviser may ask you questions about your finances,
your life and your family. It is therefore vital that you feel comfortable
discussing these subjects with the person you choose as your adviser.
To help you find an adviser that you feel comfortable with and one who is
professional, ethical and experienced, the Salisbury Group suggests that you
work through the following check list:
Where do I start?
Ask friends, family or work colleagues if they use a financial adviser, are they
happy with them would they recommend them –this is a step in the right
direction. However, don't stop here. Everyone's financial situation is unique.
Therefore, what may work for another person may not necessarily work for you.
If you don’t know anyone who has a financial adviser you could start by
contacting a couple of The Salisbury Group Advisers or
looking in the yellow pages. What is important is that you meet at least a
couple of advisers before your make a decision.
Ask about Qualifications and Professional Memberships:
Ask what qualifications the adviser has and which professional body(ies) they
are a member of – for example the Financial Planning Association (FPA) which is
the peak professional body representing financial advisers in Australia.
Ask for a financial Services Guide (FSG):
Legally the financial adviser must have a Financial Service Guide (FSG). The FSG
outlines what services the Adviser offers, the costs involved and whether or not
commissions are paid. If a financial adviser says they do not have an FSG –
don’t use them.
Ask how the adviser is paid:
It is essential to understand how the financial adviser will be paid and what
services will be provided. Financial advisers can receive benefits for their
financial advice in a number of ways, including:
charging fees for the work done (fee for service);
receive commission (or brokerage) from the financial institution;
charging a scale of fees based on total funds your invest; or
a combination of fees and commissions.
Ask how you will get your advice
The financial adviser must provide a written plan called a Statement of Advice (SOA).
This document will outline the strategies and investment options the adviser
considers will be appropriate for you and will also outline all investment fees
and commissions and the total cost to you.
Ask if the adviser has a licence or if they are an Authorised Representative:
To be a financial adviser, a person has to be registered with the Australian
Insurance and Investments Commission (ASIC) as either a Australian Financial
Services Licence holder or an Authorised Representative of a licence holder. You
can check an adviser’s registration on the web at www.asicgov.au/fidofido.nsf
Remember, when you see a financial adviser don't be afraid to ask questions.
Will the advice be just for me?
Everybody is an individual with their own life history, ideas and
experience. We all have personal situations and financial positions that
are different from the next person.
A financial Adviser’s job is to understand what your personal situation
is at the moment and what your goals and ambitions are. A good Adviser
will listen to what you have to say and will ask questions to help you
sort your ideas out. As your situation is different to the next
persons’, good financial advice should be provided specifically for you
and should reflect you situation and goals.
The Salisbury Group Advisers are very experienced
working with clients and they will provide individually tailored advice
for each client.
How much will it cost?
Financial Advisers charge for their services in a number of ways. The ways financial advisers are generally paid are:
by commission payments, which are a percentage of the funds invested (the most common method);
as an hourly rate or a fee-for-service;
or as a mix of these two methods.
It is important that you ask a prospective Adviser how you will pay and what the costs are likely to be before you undertake any work with them.
If you are paying your Adviser by commission, you Adviser is required to provide you with information about the costs as part of a Statement of Advice. The cost information should be provided in both percentage and dollar terms. For example if you are placing an investment of $100,000 and the commission for placing this investment is 2% the commission payment will be $2,000. This means that once the commission payment is taken out of your $100,000, $98,000 will be invested.
Other Advisers charge a fee for service based on either a specific service or an hourly rate. You should discuss fees and costs with the Adviser so that you understand how much the service to you will cost.
It may also be the case that the cost of financial advice will be a mixture of fees and commissions to best suite you, the client. Again, the cost of advice and how it will be paid needs to be discussed with the Adviser.
I don’t know anything about investments
Good Advisers recognize that not everyone has the same level of
understanding of investing and investments. By speaking with clients and
asking questions, your Salisbury Group Advisers
can get an idea of how much you know and understand. They will then
tailor the level of information to match where you are on your journey of
learning abut investing.
BUT it is important that you do not leave it there.
Our advice to you is to ask the Adviser questions, and lots of them. It
is important that you have an understanding of the investments being
discussed between you and the Adviser. You should not proceed with any
advice unless you understand what is being proposed and how it will help
you move towards your goals.
