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Planning for your first meeting with a financial adviser

Planning for your first meeting with a financial adviser

Walk in with confidence

So you’ve made the decision to meet with a financial adviser. The next step is to get ready to make the most of your first meeting. Below is a checklist that can help. You don’t necessarily need to do everything on this list, but the better prepared you are the better quality conversation you can have.

It starts with a conversation

Your first appointment with a financial adviser is really a ‘get to know you’ session that helps your adviser understand your financial situation before they make any recommendations.

You might be interested in a specific piece of advice, like life insurance or superannuation, or more holistic advice about your finances in general. Either way, most advisers will look at your complete financial picture as different aspects of your finances are often connected.

See below for a checklist of some of the things you need to think about or bring along to your first appointment.

First appointment checklist

What to take?

  • A summary of your assets (home, car, investments etc.) and liabilities (loans, credit cards etc.)
  • An estimate of your monthly income and expenses
  • Your most recent tax return or pay slip
  • Your most recent superannuation statement
  • Policy Schedules for any life insurance policies you have
  • Your Tax File Number

What to think about?

What are the big goals (financial or otherwise) you'd like to achieve in the next:

  • 1-2 years
  • 3-5 years
  • 5-10 years

What they should give you?

  1. A Financial Services Guide - a guide that contains information about the company providing you with financial advice. It also explains the financial services offered, the fees charged ans how the person or company providing the service will deal with complaints.
  2. A Statement of Advice (SOA) which incorporates facts and goals about your life, compares fees, lays out all possible outcomes and areas of concern and then offers a recommendation. This document is typically provided at a later date.
  3. An understanding on how often your plan will be reviewed.

What happens next?

Your financial adviser will come back to you a short time after the first meeting with their recommendations and proposed costs, which will be included in a ‘Statement of Advice’. They will talk you through their recommendations and give you the opportunity to accept or decline the offer to go any further.

Your adviser will typically charge you for preparing your Statement of Advice (usually around $1,000 - $2,000 depending on scope) regardless of whether of you go ahead with their recommendations. But don’t worry, you will be asked to approve any costs before they are committed.

If you’re not comfortable with anything the adviser has recommended, have that conversation before your plan is implemented, as there will be an additional cost for implementation (usually another $1,000 depending on scope).

Standard financial advice process
Financial advice is an ongoing process, so expect your adviser to invite you to review your plan every 1-2 years. The frequency and scope of these meetings is something you can discuss with your adviser, but the main thing is to make sure you’re getting what you want from the relationship.

Your advise will typically charge you for preparing your Statement of Advice (usually around $1,000 - $2,000) regardless of wheather or not you go ahead with their recommendations. But don't worry, you will be asked to approve before they are committed.

Additionally, it's important to understand how your financial adviser charge for their advice, typically is is a one-off fee or an ongoing ‘opt in’ advice fee (read ASIC's guide on paying for financial advice).

*www.canstar.com.au/superannuation/financial-planning-fees-cost/

Warning signs for poor advice

Before you agree to proceed with your adviser’s recommendations, there are some warning signs you should look out for:

  • Your adviser hasn’t asked you many questions about you and your goals for the future.  
  • They’re pressuring you into making a decision before you understand what you’re buying.
  • They haven’t asked you about your budget or living expenses.
  • They haven’t explained the features and options of the product(s) they’re recommending.
  • For insurance products, they haven’t explained stepped v level premiums and how that will impact what you pay     over time.
  • They haven’t provided you with a projection of your insurance premiums for the next 10,     20 or even 30 years, depending on how long you intend to keep the cover
  • They haven’t discussed insurance through super or reviewed your existing super     arrangements.
  • They haven’t provided you with a Financial Services Guide or Statement of Advice.
  • They haven’t explained their fees or what commissions they will receive.
If you experience any of the following warning signs, you may want to ask more questions or try a different adviser.

Important information

While OnePath Life has taken care to ensure that this information is from reliable sources, it cannot warrant it's accuracy, completeness or suitability for your intended use. To the extent permitted by law, OnePath Life does not accept any responsibility or liability arising form your use of this information.

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Planning for your first meeting with a financial adviser