Step 4: Do this research for each adviser on your shortlist
Before you book a meeting with a financial adviser, spend half an hour doing some armchair research. It could save you a lot of frustration later.
You want to know what sort of ‘products’ the adviser works with. Can they offer lots of different investments, or do they just do a few? If they are an insurance broker, do they work with lots of companies, or just one?
And how do they charge? Each adviser might get paid a different way.
For instance, some advisers charge you a flat fee to create a retirement plan. Others won’t charge you, but will charge a commission. For instance, most mortgage advisers charge the bank a commission when you get a loan through them.
If pricing isn’t clearly explained on the website, look for their disclosure statement.
This is a compulsory document that all licensed financial advisers must have on their website. It explains how the company gets paid, the services they offer, and any potential conflicts of interest.
The disclosure statement might be labelled “Disclosure”, “Disclosure Statement” or “Important Information”.
You can often find this in the header or footer on the financial adviser’s website. For instance, here is a link to our disclosure document at Opes Partners. You can find this through the header of the website.
This does matter. For example, mortgage advisers have to list the lenders they work with. If one adviser works with three banks and another works with twenty-six lenders, that’s useful context for you. And it might sway your decision one way or the other.
And don’t forget about reviews to see what people actually say.
