Will your financial planner be around when you retire?
Did you know that the financial adviser’s industry has recently had a huge shake-up? What this means for you is that your adviser could be one of the 30% planning to retire or change careers. That means you could be left stranded and scrambling to find a new financial planner very soon.
The big industry clean up
But don’t worry, the new overhaul is an attempt to clean up and improve the overall quality of the industry, which benefits you in the long term. According to the new regulations, all financial advisers must have an approved degree and participate in regular professional development activities.
Shopping for a new adviser
So, what do you do if your adviser is one of the early retirees? Well, it may be time for you to start shopping for a replacement adviser. Here’s a few things you may want to consider:
- Choose an adviser who is also a Certified Financial Planner®. These advisers are considered the cream of the crop due to the governing body, high ethics, and rigorous standards. As a member myself, I can vouch for this accreditation.
- Look for someone who has sufficient experience, ideally not a novice but not someone too close to retirement. Any decent adviser should warn you a few years before their retirement and should have a succession plan in place to ensure your life’s savings are still taken care of.
- Choose someone that you feel comfortable with, that listens to you and puts your needs first. Find an adviser that answers all your questions and takes the time to explain tricky concepts so they make sense to you.
- If your adviser is part of larger organisations, check that you won’t be passed onto a newbie. If a replacement is offered, be sure to interview him or her, to ensure that you like and trust them. At this point, you may even decide to change the companies altogether.
- Reach out to other financial planners and get a second opinion. Most advisers, myself included, offer this service, free of charge. A fresh perspective can help you to reassess your long term plans and make sure your finances are set up in a way to give you the best outcome.
- And lastly, find someone who is passionate about what they do; their enthusiasm will be infectious. There’s no point talking about money with someone who puts you to sleep.
Most importantly, take your time, find a financial adviser who you click with, who will be around for the duration of your retirement and is the right fit for you and your money goals.
Tamara Gillman is a Certified Financial Planner® and the founder of True Journey Financial Planning. Tamara prides herself on forming lifelong relationships with her clients and taking a thoughtful and caring approach. Tamara provides financial guidance by being a “Personal CFO” to families and professionals around Australia.