How do you check whether the financial plan is any good? Remember, personal advice does not need to be ideal, perfect or the best, but it must satisfy each of the following conditions to be considered suitable:
A good financial adviser should take into account your experience, language skills, literacy and numeracy levels when preparing your advice. A financial plan that does not use language you understand or is heavy with industry jargon, or contains irrelevant information cannot be effective.
Kim went to see an adviser about her superannuation fund. The financial plan included information and an investment recommendation on managed funds. The adviser did not listen or take Kim's objectives into account.
Kim chose to not proceed with this advice and sought the help of another adviser.
It can be very easy to be swayed by an adviser's demeanour. Focus on the reason you are seeking advice and make sure it's appropriate for you.
Keep a clear head and take time out for the dust to settle before making major investment decisions.
While "quality" is open to interpretation and specific to a person's circumstances, here are some useful questions to determine if a financial plan is good quality and fits the bill:
Many investors make wealth management decisions based on emotion, usually:
Be wary of how these can cloud your investment decisions.
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