Sydney is one of the leading financial hubs in the Asia Pacific. The Australian Securities Exchange and the Reserve Bank of Australia have their main offices in Sydney. So, you will find many financial advisors and planners in the city. But choosing a financial advisor in Sydney is a crucial decision you won’t want to make lightly. Making sure they’re right for you means knowing what to look out for and asking the right questions. Here’s how to find the best person to help you manage your money.
- Choose an advisor who knows you and your needs: You want to work with someone who understands what you’re looking for in a financial planner and can advise you on your goals, whether retiring early or saving for college. If they don’t know enough about your situation, they won’t be able to help you make good decisions regarding your money.
- Choose an advisor that can help you reach your goals: This is where a clear understanding of what you want out of the relationship comes into play again—be sure that any financial professional can get results for whatever matters most to you!
- Look for experience, qualifications, and accreditation: When you look for a financial advisor, consider their experience and qualifications. Ask about the years they’ve been practising as an advisor and if they are qualified to give advice specific to your needs. You can also ask if they have obtained any special certifications (such as CFP or CFA) that demonstrate competency in their field. Another way to evaluate a financial advisor is by looking at their accreditation by organisations like The CFP Board, which requires a certain level of education and examination score before being granted membership into this prestigious organisation that promotes high ethical standards among its members.
- Ask about the fees you’ll be paying: Fees can be a percentage of your portfolio or a fixed amount, and they can vary depending on the services that you’re getting. Advisors who charge by the hour or year will likely charge less than those who use a flat fee structure. Avoid advisors who charge asset-based fees based on the value of your portfolio rather than how much work they did for you. These advisors may look good at first glance because they don’t charge you anything until your assets reach a certain threshold (say $500,000), but this can end up putting unnecessary strain on small accounts that could grow over time if left untouched by an advisor’s handiwork. By contrast, financial advisers who take only hourly—not asset-based—fees will always have the incentive to help all customers no matter how big or small their portfolios are now; it’s also easier for them to avoid conflicts of interest since there isn’t any incentive for them to push one type investment over another so that they can make more money off each customer individually (an issue often found when dealing with commission-based experts).
- Ask about their investment philosophy: In addition to discussing their compensation, it’s important to understand how your financial advisor invests the money you give them. If you’re investing in mutual funds or ETFs, the advisor will have a strategy for navigating that market and deciding which investments are best. Some advisors have a specific investment philosophy (such as value investing), while others may use multiple strategies depending on individual client needs and time horizons. Regardless of the strategy employed by a particular financial advisor, you need to ask about the investment philosophy before working together.
Financial advisors come in all shapes and sizes, so it’s important to do your homework before choosing the right one. Make sure you find a financial advisor in Sydney who will understand your needs and help guide you through some of life’s biggest financial decisions. And remember: if something doesn’t feel right about the relationship, walk away without guilt!