Getting information and advice
Don't worry if you find it a bit hard to make sense of your money and you aren't sure how to put yourself in charge. There are lots of places where you can find useful information. You can also get help from a qualified financial adviser.
What you need to know and where you go for information or advice will depend on your situation.
Before you go anywhere for help, it pays to do your homework. You should take as much information about your finances as you can. Be prepared to ask questions if you are uncertain of anything. And you can always get another opinion if you think the information or advice you are getting is not right for you.
Above all, remember that you can ask for help understanding your money at any time, not just when the going gets tough.
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The bottom line
- Friends and family can help with ideas, but might not be the best people to give you financial advice. Do your own research before deciding to invest in anything.
- If you don't understand what the experts are telling you, ask questions.
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What help can you get?
Before you start looking for someone to talk to, think about whether you need:
- general information on financial topics and skills
- financial counselling to help you sort out a particular money problem
- personal financial advice tailored to your specific circumstances and goals
- help resolving an issue with a financial product or service provider.
General information about how to plan and manage your finances is available free from many government and community services. It may also be available from your bank, credit union or building society. Many of these organisations provide information on the internet, which can be a very useful resource for your financial research. You may also be able to attend information seminars or get free brochures or pamphlets which are often available on the internet. In some cases you may be able to have a face-to-face discussion about, for example, how to do a budget.
Financial counsellors may be able to help you work your way out of debt or deal with other money problems. Counselling services are available from a number of government and community organisations. They are free, independent and confidential. See More information for details of free information and counselling services.
Professional financial advice is available from licensed financial advisers or financial planners. In return for a fee or commission, your adviser can help you develop a plan to achieve your personal financial goals. The advice may also recommend buying one or more financial products, for example, investing in a managed fund and taking out life insurance.
If you have a problem with a financial service or product, an industry complaints or dispute resolution service may be able to help. See More information.
Professional financial advice
You can receive professional financial advice from an adviser or planner who works for a licensed financial advisory business. The licence offers you extra protection if anything goes wrong.
Finding good advice means finding a good adviser. You can start by talking to family and friends who may have used a licensed financial adviser and learn from their experiences. Aim to see at least two to three different people before you make your final choice. Getting a second opinion about the advice itself may prove expensive and may end up confusing you. However, when you get down to making final decisions about financial products to buy, look carefully at the fees and ask your adviser if there are less expensive options that might be just as good.
Every professional advice service must hold a licence issued by the Australian Securities and Investments Commission (ASIC). You can check that the person you are dealing with has a current licence by contacting ASIC. See More information.
A licensed adviser should give you a Financial Services Guide that can tell you what advisory services are offered and what commissions and fees you will have to pay. It can also include details of the advising business, such as who owns it, and tell you about commissions and benefits your adviser may get for recommending particular products.
How can you tell if you're getting good advice?
Your adviser should provide a statement of advice that sets out what they are recommending and why they think it is suitable for you. A good statement of advice will be clear, concise and effective. It will correctly sum up your financial needs and circumstances, and recommend various steps for you to take and possibly various financial products that may suit your needs. A statement of advice must also set out the fees for the advice and any conflicts of interest the adviser has, including commissions they might receive for promoting a particular financial product.
You should also be given a product disclosure statement for any recommended financial product. This will:
- give details of the company providing the product
- explain the features of the product
- describe the benefits and risks of the product
- set out how much you will pay
- give you information about complaints handling and the cooling-off period.
The law requires a cooling-off period for many types of financial product. This means that if you change your mind about investing in a managed fund, for example, you will get your money back if you contact the provider within the required time, less any market fluctuations or taxes/administrative costs.
It is important to remember that you should make up your own mind and not be pressured into making a decision with which you're not comfortable.
Protect your money by checking that your adviser is licensed. If you don't, you risk being a victim of a scam. If you are being promised returns that look too good to be true, they probably are. For more information on what to do if you think you've been scammed, see Protecting your money.
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Make it happen
- Always ask about anything you don't understand.
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How much will you pay for advice?
The amount you'll pay for a personalised financial plan will depend upon your circumstances and needs. Financial advisers charge three different kinds of fees:
- a commission on products you are sold
- a percentage of the amount you have invested through the adviser
- an hourly fee.
You may also be asked to pay a fee to the company that issues any financial products you buy.
It can pay to shop around because fees and charges can make a real difference to how much money you get from your investments - particularly with long-term investments such as superannuation, managed funds and retirement income streams. See More information.
What will you need to tell your adviser?
Your adviser needs to know as much as possible about your needs, your goals and your personal attitudes to money in order to give you appropriate advice. You will get more out of your discussions if you think about these issues and do some research. You will also need to give information about your income, expenses, assets and debts.
More information
There's a lot more that you can learn about getting information and advice on your money. See More information.