I met with a financial planner recently, who had a great business model. It was different to what I had seen previously. It was clear, transparent, and very client-focused.
Financial planning hasn't always been this way. Thankfully, the old model of sales first and client interests second is much diminished.
To be fair, there was always a large cohort of quality financial planners that had a client-first ethos. There were others however, that were looking after number one.
How do you find a good financial planner? There are multiple ways, that vary from doing an online search, to a personal recommendation from someone you trust.
Most large accounting firms have financial planning practices. Sometimes these are fully integrated, in other cases not quite as much.
A financial planner can have such a large effect on your life, it is worth the effort in finding someone who is a good fit. I advocate gathering up a list of pertinent questions, and basically conduct an interview.
The client is always in control, and as such, should have complete faith in what they are being told.
In my view if someone is looking at changing accountants or banks, the same process should apply. Find someone you can work with in the long-term, a person or a firm that is on the same page as you, and will work through scenarios as your circumstances change.
Everyone has complete choice over who they choose to provide them with professional services. No one owns the client, and ultimately the customer can deal with whoever they like.
An analogy I like to use is the customer/bank relationship. The customer is the mortgagor, and the bank is the mortgagee. The bank doesn't own the property, the business owner does under the Torrens Title system.
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Although, banks have strong legislative, and common law remedies available to them to recover funds if circumstances warrant. But the fact remains that if the business owner pays out the mortgage or refinances, they can go wherever they like.
The same principle applies to accountants and rural merchandise suppliers etc.
Seeing how well the financial planner understands your business, and how effectively they communicate, will help you get a handle on their strategy. You also need to get clarity on how their fees are charged, as there are many ways, and you need to fully understand this.
Fees are not the only important element. All professional service providers have the right to make a profit.
Transparency and obtaining value from the service is the key.
Financial planning fits firmly in the category of a long-term strategy. Anyone you engage with in the field needs to be with your business for the long run.
A good financial planner is another member of your team that surrounds you. They are no less important than your accountant, agronomist, or banker. Take the time to find one that suits your needs, future generations may well thank-you.
- Details: bagshawagriconsulting.com.au
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