The Raw + Honest Conversation You Need to Have with Your Financial Adviser

We avoid conversations about money with those closest to us for a long time, but many of us leave consulting a professional until it’s too late.

If you’ve made it this far, congratulations! Getting real about your finances and having candid conversations about money with those closest to you is not easy. But by opening up about money and getting more comfortable talking about it, you’re breaking down the stigma and the barriers that have been holding you back.

Up until this point, you’ve done the groundwork by asking yourself all the important questions and talking openly about money with the important people in your life. You’ve probably had some financial flashpoints along the way that’ve got you figuring out what’s important to you and what you want to work toward. Now it’s about creating a financial plan that aligns with the life you want and taking action to get you there. That’s where good financial advice comes in.

While you’ve been assessing your money situation, you’ve probably identified some pain points where you could probably do with some help. Managing money and understanding tax implications can be confusing, and you generally need a bit of guidance to get moving in the right direction. Whether it’s managing your own money, shared finances with your partner, or being equipped to talk to your parents or kids about estate planning, speaking to a financial adviser can really help.

All sorts of emotions can crop up when we open up about finances with our partner, parents, and kids, but it’s also difficult to talk about your financial situation with a professional. Whether you’re worried about feeling judged by someone for your money decisions or you’re concerned about how much it’s going to cost to get financial advice, there’s a reason why you haven’t taken the step yet. Maybe you don’t really believe you can change your money situation, so you don’t think it would be worth the effort, or perhaps you just don’t think you can trust anyone else with your personal finances. You might think you’re not earning enough money to warrant seeing an adviser, or maybe you don’t think you’re ready to invest your money.

Too many people think seeing a financial adviser is out of their league. But I believe everyone should have access to the wealth of knowledge and guidance that an adviser can provide. Everyone, no matter their financial situation or their background, deserves to enjoy financial freedom and security, which can be accessed through the advice of an expert. In the same way that we have a doctor to keep our health in order, a financial expert will keep you on top of your financial health.

Some of the best things in life are things that money can’t buy. Sunsets, time with family, laughs with friends, an afternoon at the beach. But the irony is that we need to be financially stable and secure to have the freedom to enjoy these free things. (And a cocktail in hand would be nice too!) The good life comes at a cost, but all it takes is putting a few solid practices in place. You can do that with some practical guidance from the people who know their stuff when it comes to money. Even if it takes a little bit of sacrifice in the short term, you can have money and enjoy your life at the same time. Really, the two go hand in hand.

Many of us resist seeking advice, and we often decide to manage our financial affairs ourselves. A lot of people make the mistake of thinking that financial advice is just for the wealthy. But financial advice can help you plan for things as simple as a holiday or something as complex as buying a property or retiring comfortably.

Managing your money is such an important part of managing life. Seeing a financial adviser should not be reserved only for the rich, because access to this kind of specialist knowledge is incredibly valuable and it can really change your life.

Financial Adviser Readiness

Are you ready for a financial adviser? If you’re reading this book, and have gotten this far, you must be ready to straighten out your finances once and for all. But I know that seeking financial advice can feel like a really big step for many people, especially if you haven’t done it before (except maybe getting an accountant to do your tax which isn’t quite the same thing).

You may or may not be ready for professional advice yet and that’s okay. You’ve got to look at your own personal situation and assess what’s right for you right now. Just the fact that you’ve started to identify some gaps and learn about money management and wealth creation is a great first step. If you’re not ready yet, you might come back to this part later. Being vulnerable with yourself and your family and friends about your money situation and fears is the first big step to being able to improve your money story. Getting a professional is the next step if you decide it’s right for you.

Financial Adviser Benefits

Like you would see a counsellor to get through some personal issues, a financial adviser is there to help you straighten out a hugely important part of life—your finances.

Developing real financial literacy and building your financial confidence is truly life-changing. I wish everyone had access to good financial advice, because all too often I see people not really knowing the best way to prepare for the future—because they didn’t know how to plan properly and invest their money with a long-term view.

I wholeheartedly believe in the power of great financial advice. It is an absolute game-changer, and we all need it now more than ever.

The sooner you start planning, the sooner you can build the life you want, and live with better peace of mind. A financial planner has the technical expertise to develop the right strategy for you. They will know the latest legislative changes and ensure you feel financially informed and confident about your future.

If you’re trying to make some changes to your financial future and put some good practices in place, it helps to involve an expert to help you navigate those important decisions. If you’re ready to invest your money, if you’re handling an inheritance, if you want to make a plan for your retirement, or if you’re trying to create a life plan, whether it’s on your own or together with your partner or even if you want to help your kids create a plan for their future, it’s helpful to talk to a third party who can give you sound advice—particularly someone who has seen situations like yours over and over again.

People seek financial advice at different life stages. A young professional or couple might want to preserve the capital they’re saving and investing, while a retiree is thinking about making sure they have enough to live on in retirement while being able to leave a legacy for the next generation. So, it’s really about tailoring your needs to your goals.

Life changes, and what you do with your money changes at different stages of life, so you need to keep adapting your financial advice too. Whether you’re young and in debt from university or college fees or you have made mistakes with money and you’re wondering if you’re ever going to get to financial security, there are experts in financial services who can absolutely help you out.

Navigating through a financial change requires sound advice, accountability, and perseverance. But having an adviser set things up for you will make the hard bits automated and simple so you don’t need to think about it too much.

Financial Advising Flexibility

Almost two million Australians have seen a financial planner or adviser, and almost 40 percent of Americans work with a financial adviser. While some people keep a financial adviser for life, some switch for many reasons. It could be because their adviser lacked good communication or made some poor choices with stocks. Maybe they gave some bad advice, or maybe they just didn’t feel a connection with their adviser.

If you’re nodding your head in agreement here and you’re not happy with your financial adviser, you can consider transferring to another. But it’s important to check to see if there is any red tape involved with switching before you do anything. Read the fine print in the terms and conditions of your contract. Most of the time you simply have to send a signed letter to your adviser to terminate the contract. Before you say goodbye, make sure you collect your investment records too. Your new adviser might be able and willing to manage this for you and handle any paperwork for your transfer, which makes things easier for you.

If you’ve tried an adviser before and it didn’t quite work, I encourage you to keep looking to find someone who is a good fit for you. Things change over your life, and where you may not have been ready before, you just might be now.

The Role of a Financial Adviser

The financial world is a maze of rules, products, and opinions on how to best manage money. If there’s something you don’t understand in the world of finance, you’re not alone.

An adviser can give you insights into all you need to know when it comes to managing your finances—the ins and outs of tax, different investment options, how to distribute your money, how to save, and how to reduce debt. They will also ensure you have a retirement savings plan that will be not only enough, but more than enough, to live a good life in retirement.

Many people feel like they have no one to talk to about money. Having a financial adviser is like having someone to spill all your financial worries to and have them help you create solutions. An adviser will help look at your financial plan holistically and get you set up in the right direction.

Financial planning is about developing strategies to help you manage your financial affairs and meet your life goals. If you could achieve your financial goals by simply putting money away in the bank, you wouldn’t need a financial plan. Unfortunately, life is a little more complex—it’s hard to understand the intricacies of investment, taxation, and ever-changing rules and regulations, so you need professional help.

There are different levels of advice for different people, so it’s a matter of finding what works for you. Just like finding the right nutritional plan for you, the same goes for financial advice. It’s a tailored approach to your money plan that is a part of your broader life plan.

Trusting Financial Advisers

Yes, I know some of you just don’t trust financial advisers because of something you’ve heard or read about. Maybe you aren’t willing to open up your personal finances to anyone else, even with a professional expert in the field, because you’re just not sure who you can trust with your money.

Financial advisers haven’t always had a good rap. There have been some bad apples that have given the bunch a bad name. But like in any industry, there are some good (and great) financial advisers out there, but there are also some below-average ones. When it comes to getting good financial advice, it’s really important that you find someone you trust.

A lot of people don’t have their financial advice needs met because they are sceptical of the industry or don’t know who to trust with their hard-earned cash, not because there aren’t good people out there to help them. Missing out on good financial advice is unfortunate if you’re held back because some people have been burnt in the past.

I’ve dealt with enough financial advisers in my time to know what to look for. I know there are thousands of incredible (and credible) advisers who are good at what they do. By working with them over the years I’ve seen how many of them genuinely care and want to help people and how incredibly smart they are when it comes to managing money.

But of course, it’s important to find a financial adviser that you can trust and someone who listens to you about what you want out of life, what your values are, what your goals are, and what you’re striving toward long-term. Financial advisers who want to have a long-term relationship with you and care about your personal goals tend to be the ones you can trust.

Financial planning is a specialist profession, and you should make sure that you’re getting advice from a professional financial planner who is properly licensed and qualified.

Ten Questions to Ask a Financial Adviser

1. How long have you been a financial adviser?
2. Are you a member of the Financial Planning Association?
3. What academic and professional qualifications do you hold?
4. Are you a certified financial planning professional?
5. How do you charge for your services?
6. What’s your specialty that you can offer advice on?
7. Who ultimately owns your practice?
8. What type of clients do you work with best?
9. What sort of clients do you typically see?
10. How often would we see each other?

This is an extract of Chapter 5 from Vanessa’s new book. You can order it here 

https://vanessastoykov.com.au/books/the-five-conversations-about-money-that-will-radically-change-your-life/