What to expect when seeking financial advice

— 10 min read

Whether it’s starting to exercise, improving your diet, trying a new hobby or getting your finances in order, most of us are able to identify something in our lives that we could do better or we need to work on, but taking that first step can be daunting – especially when we aren’t sure what to expect or where to start. Seeking financial advice is no different.

So let’s start at the beginning and give you some insight into financial advice.

Financial advice debunked

When should you be seeking financial advice?

As early as possible! Financial advice is not just for high income earners with more disposable cash that they know what to do with (that is a total misconception), nor is it only for those who are drowning and need professional help to get back on track.

Having a solid financial plan at every stage of your life not only keeps you on target, it also helps you achieve your goals (big or small, short or long term), maximises your financial position and ultimately, gives you peace of mind.

How much does financial planning cost?

It costs nothing to get started.

Because your financial adviser designs each financial plan personalised to your specific needs, there is a need to get to know you a little bit before he or she knows how best to add value to you. This means that your initial meeting with your financial adviser and related follow-ups have no fees at this point, or any strings attached. Once they understand your specific situation, they can better understand how they may be of value and to assist in achieving your goals.

Fees range in value depending on the work involved and complexity of advice. At this time your adviser will outline how they may add value to your financial position, in addition to the associated cost, allowing you to decide whether to proceed with advice.

Did you know?

There are many different services areas that a financial adviser can assist with, and there is no one size fits all approach to keeping you on track to achieve your goals, whether that may be buying your first home, providing for your children’s education or accumulating wealth for the long-term. Their advice is tailored specifically to your personal situation and needs.

What can you expect in a first meeting with your financial adviser?

Your first meeting is all about you. Your financial adviser wants to get to know you so he or she can understand what you need to get you to where you want to be. This may include discussing any goals you may have (buying a home, taking time off work to start a family, growing your wealth, etc), identifying some new goals, reviewing your current financial position, and understanding any previous investment experience (if any) you may have had.

It’s also very important that you know what to expect from your financial adviser, so you both use this meeting as an opportunity to properly introduce yourselves, explain the services they can offer you and answer any questions you may have about who they are and what they do.

What happens next?

From here, you and your financial adviser spend some time thinking about how they can assist in developing a financial plan. The services they have available include:

  • Investment and retirement planning
  • Wealth creation
  • Savings plans, budgeting & cash flow management
  • Debt management strategies
  • Wealth protection (personal insurance)
  • Personal and employer superannuation
  • Self Managed Superannuation Funds
  • Estate planning
  • Salary packaging
  • Social security

Once you have established the best fit together, they will prepare an Engagement Proposal for you. This will provide you with:

  • A summary of their understanding of your personal position, goals & objectives
  • Basic financial modelling of your current circumstances if relevant
  • Details of the services they believe will add value to you (scope of their services)
  • An outline of their fees to provide these services
  • Any other information they believe is relevant to you.

Did you know?

There are different pricing models offered by financial adviser. At DPM for example, we are fee for service. That means that when you engage us to assist with your financial planning needs, the fees disclosed are the only fees we receive and there are no hidden commissions. The relationship with your wealth consultant is about trust, so we are transparent in sharing our financial remuneration with you.

Your financial advice journey begins

Once you have received your engagement proposal, your financial adviser encourages you to read through it and ask any questions you may have. While it’s your consultant’s job to put your plan together and help you keep on track, he or she can’t do this without you – so making sure you have a full understanding of where you are at each step of the way means you are working together to get you to where you need to go.

Then, once you are ready, it’s time to begin the financial planning process. If you would like to speak to someone in our team of professional financial advisers please make an enquiry here.

If you wish to speak to a DPM financial adviser about starting your financial planning journey, call 1300 376 376 or book in for a complimentary no-obligation initial consultation.

Disclaimer: * The information contained in this site is general and is not intended to serve as advice. DPM Financial Services Group recommends you obtain advice concerning specific matters before making a decision.

Authors

Philippa Crombie

BBus (FinPlan)

Associate Consultant
Melbourne

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Philippa joined DPM in 2019 bringing with her more than four years’ industry experience, working with a broad range of clients. Philippa holds a Bachelor of Business (Financial Planning) and an additional accreditation in providing specialist advice in relation to self-managed super funds. With a strong background in financial modelling she has a passion for strategic financial planning which includes working with her clients to achieve their short, medium and long-term goals.