What to Ask a Financial Planner

Whether you’re speaking to a single person or have a shortlist of financial planners, here are some questions to ask them:

1. What are your qualifications?

   A financial planner should have an industry acknowledged qualification. Also check whether the person is authorised by the Financial Services Board (FSB) as a financial services provider or the representative of a provider.

2. How will you be paid?

   Your financial planner may receive either commission on products sold, or a payment for advice given, or a combination thereof. This could be an hourly rate, a retainer or a percentage of the assets managed for you. Make sure you know how your financial planner will be paid before you proceed.

3. What services do you offer?

   Choose someone who can help you with an extensive range of services and can offer integrated advice. If you need specialised advice, get the services of someone who has in-depth knowledge of the area in which you are interested, for example, estate planning.

4. Can I see an example of a financial plan you compiled?

   The strategy should be thorough, but clear and easy to understand, with minimal jargon. A good financial planner will not mind going over the plan repeatedly until you are confident you fully understand it.

5. Do you require a minimum investment?

   Some firms and financial planners only take on clients in a high income bracket who have a large amount to invest.

6. Are you "tied" to a financial services provider?

   Consider the benefits of choosing a financial planner who is affiliated with a reputable financial services provider that has been in the industry for many years. Not only is he/she likely to be well-trained, but he/she will also have access to strong support as well as in-house expertise on all aspects of financial planning.

7. How long have you worked in the industry?

   While experience is important, do not discount younger financial planners – they are generally well-trained. Rather check for specialist experience in the particular financial services you require.

8. How will you update me about my investments? And how often?

   Ask how often your financial planner is prepared to meet with you to discuss your financial needs, and whether you will be meeting with him or her personally or with an assistant. Also ask how often you will receive written updates on your investments.

9. Has the financial planner asked me the right questions?

   The financial planner should be eager to find out more about you – to understand your particular financial goals and investment objectives. He/She should show insight into what is important to you and how your financial goals can be achieved.

10. Is this the right financial planner for me?

    When all the other questions have been answered, you need to feel you trust the financial planner enough to be completely open about your finances. You will be establishing a long-term working relationship and it is crucial that you feel he/she will at all times have your best financial interests at heart.