By the Institute of Financial Advisers
"winners make the right moves"
As the demand for professional and objective financial planning advice continues to grow worldwide, more and more people are looking for professionals with credible and tangible qualifications. They need the reassurance, quite rightly, that they are dealing with advisers who have their best interests at heart and who have specialist experience and knowledge.
Insist on dealing with an IFA member
We view this as very important. By choosing an IFA member, you are automatically protected by a range of benefits and safeguards that may not be available to you elsewhere. We give an undertaking that our members will abide by the IFA's Code of Ethics and Professional Conduct. Our member must meet the professional body's rigorous education and experience standards. We have established a Complaints and Disciplinary Resolution procedure for your protection. Our members are obliged to only ever act in their clients' best interests. They must produce their Disclosure Documents to you as required by the IFA Code of Ethics and Professional Conduct. Our members are required to have professional indemnity insurance.
Choose a CFP Practitioner
Certified Financial Planner (CFP) is the financial planning designation recognized internationally as the highest credential for financial planning worldwide. CFP licensees have complied with a stringent set of eligibility criteria laid down and regularly tested by the international body that controls the CFP mark. Only a CFP designated financial planner has the right to use this globally recognised mark. The CFP and Certified Financial Planner marks distinguish that person as being amongst the most experienced and knowledgeable in their profession. The CFP and Certified Financial Planner designation also requires the holder to pursue a broad-based continuing education programme, which ensures their ability to continue to meet your needs.
Understanding what a CFP practitioner can do for you
A CFP practitioner strives to help you define, review and reach your financial objectives, with less risk and with more efficiency, than if you had attempted to do this yourself. They follow an internationally recognised six-step process to achieve this:
- They will help you to compile a complete picture of your current situation and determine your objectives. A CFP professional will work with you to gain an understanding of your current situation. From there, they will help you design your personal objectives.
- They will work with you to identify your financial goals, needs and aspirations. Your adviser will help you define your financial goals - education, retirement, travel, and holiday home etc
- They will analyse your current situation. In choosing how to proceed, there are many aspects to weigh up: for example, your assets, what you earn, your business interests, estate issues, insurance requirements, levels of debt and so on. Your adviser will carefully compare these with your objectives in the light of the current legal, tax and economic conditions.
- They will identify weak points and recommend improvements. They will work with you to identify and overcome weaknesses or shortcomings in your current situation by providing specific recommendations on how you can improve your situation.
- They will co-ordinate the implementation of your plan. Your professional adviser will ensure all the elements of your plan are implemented. In doing so, they will co-ordinate with other professional specialists as required, such as solicitors or accountants.
- They will review your plan with you regularly. Your adviser will continue to work with you to ensure your plan is relevant for your circumstances and is helping you reach your objectives.
9 Steps to choosing the right adviser for you
Here are our recommendations on how to find the best adviser for your needs:
- Shop around - choose an adviser you feel comfortable with. If necessary, compare two or three different advisers.
- Ask plenty of questions.
- Ask about his or her qualifications and experience and if he/she is a member of IFA.
- Ask for a copy of their Disclosure Document. An adviser is required to supply this to you.
- If your adviser has been recommended to you, ensure that you still complete 1-4.
- Get your adviser to complete a full needs analysis for you with a written report or plan. This makes sure your exact needs are met. Don't invest large sums of money without a written plan that you feel comfortable with.
- Look for any danger signs especially inflated promises, returns that seem too good to be true (They probably are!), putting all your eggs in one basket, an unbalanced plan, high fees, no investment statement... and anything else that makes you feel uncomfortable! Keep an eye on your investments - watch for changes that might affect you.
- Act on the advice - otherwise what's the point in having sought it?
- Regularly review your programme with your adviser.
To find out more visit www.ifa.org.nz or 0800 404 422.
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