Financial advice isn’t a one-size-fits-all solution; it evolves as you progress through different stages of life.
Whether you’re just starting out or planning to enjoy the fruits of your labour, having a close, ongoing relationship with your financial adviser ensures that your financial plan aligns with your changing goals, circumstances, and priorities.
To get the most out of this relationship, asking the right questions is essential. Here are the top 10 questions to ask and why they matter throughout your journey.
- What Are Your Qualifications and Experience?
Why ask: Financial advice is only as good as the person providing it. Knowing your adviser’s qualifications, experience, and areas of expertise ensures they are equipped to handle your unique needs, especially as your financial complexity grows. - What Is Your Investment Philosophy?
Why ask: An adviser’s approach to risk and reward should align with your comfort level, especially during stages like building wealth or preserving assets in retirement. A mismatch could lead to unnecessary stress or suboptimal results. - How Will You Help Me Set and Prioritise My Financial Goals?
Why ask: Early in life, when you’re laying the foundations, setting clear, achievable goals is crucial. A good adviser will help you identify what matters most—buying a home, starting a business, or saving for retirement—and create a roadmap. - What Strategies Can You Offer to Build Wealth?
Why ask: During the growth stage, your adviser should provide tailored advice on investments, tax strategies, and ways to maximise income. This ensures your wealth grows in line with your long-term vision. - How Do You Factor Life Events Into My Financial Plan?
Why ask: Marriage, children, job changes, or health issues can dramatically alter your financial situation. An adviser should proactively adjust your plan as these events occur, ensuring you remain on track. - What Is Your Fee Structure?
Why ask: Transparency about fees ensures you understand what you’re paying for. Whether it’s flat fees, hourly rates, or a percentage of assets managed, clarity helps you gauge the value of the advice you’re receiving. - How Can You Help Me Minimize Tax Liabilities?
Why ask: Tax efficiency is critical at every stage, from growing wealth to maximising it in retirement. A knowledgeable adviser can implement strategies to reduce your tax burden, keeping more of your money working for you. - How Will You Help Me Prepare for Retirement?
Why ask: Planning for retirement is essential to living the life you want. Your adviser should assist with superannuation, investments, and creating a sustainable withdrawal strategy that aligns with your goals. - What Happens If the Market Drops?
Why ask: Knowing your adviser’s approach to market volatility can give you peace of mind, especially during wealth-building and retirement stages. Their strategies should protect your assets while enabling growth. - How Often Will We Review My Financial Plan?
Why ask: Regular reviews ensure your financial plan adapts to changing circumstances, goals, and market conditions. A close, ongoing relationship ensures your adviser remains in tune with your needs and aspirations.
Why a Close Relationship Matters
Your financial adviser isn’t just a professional; they should be a trusted partner in achieving your best life. At each stage:
- Starting Out (Laying Foundations): A close relationship ensures your goals are realistic and that you develop healthy financial habits early.
- Growing Wealth: With regular check-ins, your adviser can identify opportunities and risks, helping you stay on course even as life throws curveballs.
- Achieving Wealth: During this phase, strategies for maximising income, minimising taxes, and planning for retirement require constant adjustments.
- Living the Life You Want: In retirement, your adviser ensures your wealth is sustainable, allowing you to enjoy the rewards of great planning without financial anxiety.
By asking these key questions and maintaining a strong relationship with your adviser, you can confidently navigate every financial stage, ensuring you live your best life every step of the way.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)