What Does Your Financial Planner Do?

What does your financial planner do?

By Jason Fittler

Like any profession or trade it is easy to dismiss what they do when you don’t understand their job.

Financial Planners have been bashed a lot since the GFC as if somehow your local planner was responsible. In fact it was the lack of government policy and loose lending by the Banks which caused the whole of the GFC.

Out of the GFC the government has declared Financial Planners fugitive number one and sought to bring in new laws.

The first is fee for service, how this is going to stop another GFC is beyond me.  Wat it means is that a lot of people will no longer have access to Financial Planners.  It also means that more people will invest in Industry funds. As the new Reserve bank for the government you can expect to see the Industry Funds start investing in long term Government bonds and infrastructure project in the near future.

The GFC also saw a lot of people’s portfolio fall in value which is distressing to all of us, you then start to question what their planner does for the money. This is a good question, below are some key indicators to look at when you are looking for a Financial Planner.

  1. Do they actively review your portfolio individually or do they simply review the fund managers and make the changes across all of their clients?
  2. Do they focus on finding new investment opportunities for your or focus on marketing to increase their Fund Under Management?
  3. Do they contact you regularly or do you have to initiate contact to have your portfolio reviewed?
  4. Is their income aligned to the value for your portfolio? Does their income go down when you lose money?
  5. Are they local, do they understand the community you live in and the lifestyle you enjoy and would like to maintain?
  6. What qualification and experience do they have?  Have they been out in the real world with real world experience?
  7. How do they invest their money?  Are they in the same investments that they recommend to you?  Are they financially stable or well off?

Our office focuses on looking for new opportunities in the market, we spend a large amount of our days looking for ways to make money. There is not a good idea every day, it takes a lot of time and research to find quality opportunities and avoid mistakes.

Our office spends time making sure that all of the administration in regards to your investments is done correctly and compliant. It is important to make sure that your Trust, Company or Self Managed Super Fund has all of the correct paperwork in place.

Our office spends time making sure that your tax structure is correct and that you are getting the most out of your investments.

If you every wonder what we do, please ask we are more than happy to take some time and explain to our clients how we look after their investments.

Like all professions it is hard to understand what they do for you, people often think they can do it themselves.  Most often this approach leads to financial losses, as the saying goes “leave it to the professionals” but it does not hurt to check up on them.