4 Things to Consider When Choosing a Financial Planner

Turning to a financial planner is a great step towards protecting your lifestyle and securing your future. But choosing a financial planner who really gets you can be hard to find.

Many financial advisers only focus on understanding your financial situation, before jumping into cookie-cutter investment options that don’t always align with your desired lifestyle and future objectives.

They may also not share or understand your values and goals, and so they can’t help you plan for the life you’d like.

We take a different approach at Lifestyle Led Wealth. We know that financial planning goes beyond numbers; it’s about living a life you enjoy, while securing your future. Our approach centers around lifestyle-focused planning, which allows you to build the life you want and prepares you for every step of your financial journey, from buying your first home to retirement.

If you’re currently looking for a financial advisor, we share four things to consider when choosing a financial planner.

1. Do They Discuss Important Life Milestones and Transitions?

Your financial journey is marked by important life milestones and transitions, like career changes, starting a family, starting a business, and retirement. It’s crucial that you’re well prepared for these changes to make sure they go smoothly, you maximise your tax efficiency and maintain (and improve) your lifestyle.

A good financial planner should discuss with you what your goals are for specific milestones and guide you in preparing adequately so that you achieve them.

For example, what are your plans for your child’s education? If you’d like to take them to private school, you need a plan to fund their tuition, which can get quite expensive. A financial planner might recommend an education bond, a mortgage offset account, or another strategy based on your goals.

Retirement is another important milestone to prepare for. A good planner will discuss with you not just how much you have in your retirement fund but how you are going to prepare to retire. For example, if you are going from 5 days to 3 days of work, how are you going to fill in the 2 days you’re not working? Do you need more money to fund your activities on days you’re not working? That is where discussing not just your contribution strategy, but your lifestyle, is crucial.

Choosing a financial planner who sees into the future and works with you to start planning for it right now is critical. They should also check in with you regularly and adjust your plans for unexpected life changes (e.g. you could change your mind and decide to retire early).

2. Do Your Values Align?

Choose a financial planner whose approach and recommendations match your personal values.

For example, you might find an advisor who believes in saving every penny for the future, but your goal is to start enjoying life right now. Whatever they advise will be at odds with what you want.

Or maybe they believe in a work-focused approach to life and money, while for you, you want work to be a choice rather than something you’re forced to do.

Other values to consider include:

• Risk philosophy — find a planner whose views on risk align with your comfort zone and life stage.
• Communication style — regular, open, and honest communication is important when working with a financial planner. Make sure their approach to communication matches your style and preferences.
• Ethical considerations — a financial planner doesn’t have to care about all the same causes that you do, but they should respect your values and work with you to build an ethical investment portfolio.
• Cultural values — a good financial planner should help you plan and invest your money in a way that aligns with your cultural values. For instance, you may want your retirement plan to factor in financial support for extended family members in keeping with your culture.

3. Do They Ask About Your Life Goals?

If a financial planner only talks about investing your money without asking about your life goals, they are probably not the right choice for you.

A good financial plan is one that’s based on your life plan and objectives; it’s not just about crunching numbers and applying formulas. If they don’t let you articulate what you want from your life, then they cannot help you achieve your goals.

Say you want to have multiple sabbaticals or mini-retirements in your 40s and 50s. Focusing only on a super fund contribution strategy can threaten your chances of doing that, since you can only access your super starting at age 60-65 years. In such a situation, you’d need to develop an asset base that generates income to support your lifestyle during your sabbaticals.

Or let’s say you want more work-life balance, so that you can spend more time with your family while still making money. The planner should take that into account and recommend strategies that prioritise financial stability over pure wealth accumulation.

Other life goals that factor heavily in a financial plan include, starting a family, the number of kids you’d like to get, your retirement plans (e.g. lots of travel or relaxing at home), education and skill development (e.g. you plan to pursue a master’s degree), and business ownership aspirations.

4. How Do They Charge? Fixed Fees or Asset-based

There are two types of payment structures that financial planners use: fixed or flat fees and asset-based pricing.

In a fixed-fee arrangement, the planner charges the same no matter how big your portfolio gets. It can save you a lot of money as your assets grow. Make sure you understand the scope of the service to ensure it covers all your needs. For example, does the flat fee include ongoing financial advice or management?

In an asset-based structure, the financial planner charges a percentage of the total assets they are managing for you. It can be affordable in the beginning but gets more expensive as your portfolio grows.

At Lifestyle Led Wealth, we are only a fixed-fee charging model. We believe the value we provide is based on the price we charge, not on how many assets you have.

Why Choose Lifestyle Led Wealth as Your Financial Planner?

If you’re in the process of choosing a financial planner who will take the time to understand your values and goals, and help you build the life you desire, then we are the best choice for you.

At Lifestyle Led Wealth, we prioritise our clients’ life goals and provide clear and honest guidance that lets you live your dream life.

Contact us at 1300 068 453 for a one-to-one chat with Justin, our financial planner, and start planning for the life you want.

Disclaimer: The information contained in this document is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs.