Financial Advisors: top tips!

Managing your money can be complicated. In our globalised world, investment involves a range of risks and it can be difficult to find a place for your money that you feel comfortable with. Moreover, the financial services industry is littered with jargon and the range of financial products available can be mind boggling for ordinary consumers. A quality independent financial advisor or planner can help you to navigate the world of finance.

They offer expert advice on the best investment, retirement fund, insurance and money management portfolio for you. However, if you're seeking a financial advisor, you also need to proceed with caution. Many financial advisers receive commissions for recommending particular products and so they are not always acting in the best interests of their clients. So, what can you do in order to get a quality financial advisor who you can trust? Here are some tips:

• Understand the sector. In Australia, financial advice can be delivered either in the retail financial advisory industry or the industry super fund sector. Industry super fund trustees generally don't operate based on commission, as retail financial advisors do, and this has attracted a lot of people to the industry super fund sector for advice. Note however, that the background and training of industry super fund trustees may be different to financial advisors from the retail industry.
• Arrange pay based on advice alone. The Commonwealth government is currently considering banning commissions in this industry, and this would be a welcome step forward. Until commissions are banned, however, be sure to ask your prospective advisor if commissions are being paid.