There are many financial advisors in Sydney, most of which offer a range of different financial services and products.
A reliable and competent financial planner should help you create a customized financial strategy that aligns with your personal needs and goals.
Below are some important factors that need to be considered by you, prior to hiring services of any financial planner or advisor.
Credentials and Knowledge Skills
The financial advisor you are planning to hire should be qualified and unbiased in their approach.
Vince Lam, the principal of Plutus Financial Guidance, has close to two decades of experience in the finance & energy sectors. Before starting the firm, he held a variety of leadership positions, which saw him secure multimillion-dollar commodity deals & trading around $40 million per year in the market. Vince also completed postgraduate studies with CPA Australia and the Macquarie University Applied Finance Centre.
Services offered by the financial planner
Generally speaking most financial advisors in Sydney will offer wealth management and investment advice. However, there are other services that could be equally as valuable, depending on your financial goals.
Budgeting & saving, debt management, superannuation advice, retirement advice, aged care financial advice & estate planning are all services that could be combined into your bespoke financial plan, to ensure your finances are set-up for today and relevant in the future.
Does your financial advisor get compensated for the products they sell?
In the financial industry, compensation and kickbacks are quite common, from the big financial product manufacturers. Its not uncommon for clients to end up with ill-fitting investments or insurance plans, as offered as part of financial advice. Especially if the financial advisor that is selling these was lured by a healthy commission.
The Independent Financial Advisors Association of Australia (IFAAA) Gold Standard of Independence™ is a symbol for genuinely independent financial advice. It is the most stringent standard of independence in the profession.
To qualify, advisors must satisfy these three criteria:
No ownership links or affiliations with product manufacturers. Impartiality is impossible where an advisor has links to a product manufacturer. Ownership links create an environment where the advisor resembles, at best, a well-intentioned salesperson.
No commissions or incentive payments from product manufacturers. Commissions are payments made by product manufacturers to their distribution network. They create a conflict of interest between advisors and their clients.
No asset-based fees. Asset fees, although authorised by the client, are calculated precisely the same way a commission is calculated. Asset fees are incentives that prevent an advisor from being impartial and therefore create a conflict of interest between advisor and client.
You should always look out for this gold standard of independence, when seeking financial advice.
