Whether you’re planning for retirement or investing for the future, choosing the right financial advisor can have a lasting impact on your long term wealth. A good financial advisor Melbourne can help you set your goals, simplify decision-making, and set some direction — but with so many options available, how do you find the right fit?
Here are key tips to help you make a confident and informed choice.
1. Clarify Your Financial Needs
Before beginning your search, ask yourself: What do I need help with?
- Are you focused on retirement planning?
- Do you want help with investments?
- Are you seeking tax strategies or estate planning? (a business accountant Melbourne can also assist with this)
- Do you own a business and need strategic advice? (again a business accountant Melbourne can help here)
Identifying your goals upfront will help narrow down the type of advisor best suited to meet your needs — whether it’s a financial advisor, business accountant or both.
2. Understand the Types of Financial Advisors
Not all advisors are the same. It’s important to understand the differences:
- Certified Financial Planner (CFP®): Trained across various areas such as tax, insurance, and retirement.
- Accountants/Tax Agents: Can assist with taxation and structuring, particularly for businesses or high-net-worth individuals. However, often they won’t be licenced to provide the full range of services.
- Investment Advisors: Focus on managing your portfolio and market exposure.
- Robo-Advisors: Online platforms offering low-cost, algorithm-based financial advice — useful for simpler investment needs.
Choose a professional whose credentials align with your financial complexity.
3. Check for Licensing and Credentials
In Australia, financial advisors must be licensed through the Australian Securities and Investments Commission (ASIC). You can verify their credentials through the Financial Advisers Register on ASIC’s Moneysmart website.
Look for recognised designations such as:
- CFP® (Certified Financial Planner)
- CPA or CA (Chartered Accountant) with financial planning accreditation
- Registered Tax Financial Advisor
These accreditations show a commitment to professional standards, education, and ethical practice.
4. Evaluate Their Fee Structure
Advisors can be paid in several ways:
- Fee-only: A transparent structure where you pay a flat fee or hourly rate.
- Commission-based: The financial advisor Melbourne receives a commission from products they recommend (this can create conflicts of interest).
- Fee-based: A combination of both.
Ensure you fully understand how your advisor is compensated — and don’t hesitate to ask for a breakdown.
5. Look for a Fiduciary Duty
In Australia, financial advisors must act in your best interests under the “best interest duty” introduced in the Corporations Act. However, it’s still worth asking:
Are you obligated to act as a fiduciary at all times?
This helps ensure your financial advisor Melbourne puts your financial interests ahead of their own.
6. Ask the Right Questions
During your initial meeting, treat it like an interview. Consider asking:
- What is your typical client profile?
- How will you help me achieve my goals?
- What’s your investment philosophy?
- How frequently will we meet?
- What happens if I want to exit the relationship?
The right advisor or business accountant Melbourne should listen more than they speak — and give clear, honest answers.
7. Check for Independence
Advisors aligned with a single institution or product provider may be limited in the solutions they can offer. An independent financial advisor typically has access to a broader range of investment options, platforms, and strategies.
8. Trust and Compatibility Matter
Beyond the numbers and credentials, choose someone you feel comfortable with. Financial planning is personal — and you need to feel confident your advisor understands your values, communicates clearly, and is someone you can trust for the long haul.
Final Thoughts
Need Help Getting Started?
If you’re considering engaging a financial advisor or want help assessing your current arrangements, reach out to a qualified professional from Nobel Thomas who can walk you through the process. We’re only a phone call away.
