Most important questions to ask your financial advisor

Planning for your retirement can be confusing and tricky, especially if you want to make the most out of this next stage of life or have specific goals.

You may be looking forward to slowing down, spending time with the grandkids, or volunteering, or doing the exact opposite and heading into another job or travelling the globe.

The best people to assist you in making sure you can live the retirement lifestyle you want to live from a financial point of view are a financial advisor or consultant.

Tailored advice

A financial advisor can help you work out the finer details and tailor their advice to your particular circumstances. They should have your best interest at heart and are obligated to leave you in a better position financially than when you first started with them.

Rosie Bouton, Principal Financial Planner and Aged Care Specialist at We Plan Financial, says depending on the type of financial assistance you are looking for, a financial advisor can help you plan for retirement in both the short and long term.

She recommends always being open with your financial advisor about your financial situation so they are better able to service your financial requirements.

“The best way into a financial relationship is to be open and honest and to make sure you are not withholding any information. The more information you can provide to your advisor, the better,” explains Ms Bouton.

Transitioning a loved one to a care facility can be challenging for the whole family. There are many decisions to make and the options can be confusing.

That is where we come in. Our practise knowledge and experience of the industry have supported our clients and their families navigate through the Aged Care System. Aged Care Financial Advisers are well respected in the Aged Care industry and understand how to best help. We focus on our service delivery, providing you with the right information and answers to your questions. Together we explore your options and support you in choosing what best suits your unique circumstances. We are there for you providing advice and support throughout the process with no ongoing fees in Aged Care.

Derek Armstrong

Aged Care Specialist Masters Financial Planning 1300 554 393 info@acfadvisers.com.au

Aged Care Financial Advisers

www.acfadvisers.com.au

Bring as many important documents as possible to assist your financial advisor in their evaluation

“We can also weigh in on people’s expectations, so if they want to live a comfortable lifestyle but they don’t have the super there to do that, we are instrumental in shifting their expectations as well. And bringing them more into line around what they can afford and what they can’t.”

Choosing an advisor

When approaching a financial advisor, there are a number of questions you should ask them to make sure you find the best person to assist with your financial needs: ◆ What are their credentials and are they registered as a financial advisor?

◆ What products can they advise on?

◆ How do the fees and charges work for their service?

◆ Do they provide broader financial advice or is it only in aged care finance? ◆ Is the service on an ongoing basis or is it once off advice?

◆ How will they provide their advice? Is it in writing, will there be multiple options to choose from and will it be easy to understand? with the financial answers they will be giving you.

Some of the questions they may ask could be:

◆ What are your objectives for retirement?

◆ Do you intend to have an active retirement with lots of overseas trips or will it be more low-key with occasional trips to the movies and local football?

◆ Under the financial retirement standards, are you aiming for a comfortable lifestyle in retirement or a modest lifestyle?

Ms Bouton adds that she finds it more helpful to speak to people that are thinking about what they want their retirement to look like rather than focusing on the numbers.

“Rather than keeping it to just figures, think about what they like to do in retirement, it brings it towards more fruitful discussion,” says Ms Bouton.

“It can give me a bit more insight into what really makes them tick, how they might respond to your fluctuations or market volatility, and gives you a bit more idea about the person that they are. Financial advice is more of a relationship you build with them rather than a static thing over figures.”

Preparing for your first meeting

Being well prepared for your first meeting with a financial advisor is important, as this will be the best time for them to get a snapshot of what your finances look like and whether you are on track to retire.

It’s important to bring as many important documents as possible that cover your finances and assets, which can assist your financial advisor in their evaluation such as:

◆ Statements of your accounts, including superannuation, current savings, and any other bank accounts ◆ An overview of your current investments, such as stocks, bonds or your housing portfolio ◆ Your current income or pension statements ◆ A fortnightly or monthly overview of your expenses, including food, accommodation, travel and insurance

◆ Any outstanding debts and loans you have, like mortgage or car repayments ◆ Your tax statement from the last year ◆ Any other important information, such as inheritance or trust, your Will, or life insurance

After your financial advisor has analysed your financial situation, here are some questions you could be asking them to understand where you are at: ◆ How does my current financial situation look?

◆ Am I on track to meeting my retirement goal or is there anything I should review? ◆ If I am not meeting my goal, what ways can I reduce my spend and boost my superannuation? ◆ How are my investments looking? Should I be doing more or changing up my investment scope? ◆ What is the next step from here?

Remember, your first meeting with a financial advisor probably won’t be your last. If you are tracking well for retirement, then you may not have to do anything. But for most people, you will most likely need to make changes to your investments, your current expenditure or super contributions.

Your financial advisor shouldn’t be leaving you feeling like you’re in over your head, but assured that you can either meet your goal or make changes to put yourself in a better position for the future.