Frequently Asked Questions

What is a financial adviser?

A financial adviser is a licensed professional who provides advice on financial matters including investments, retirement planning, insurance, mortgages, and tax planning. In New Zealand, financial advisers must be registered with the Financial Markets Authority (FMA).

Do I need a financial adviser?

While not everyone needs a financial adviser, they can be valuable if you have complex financial situations, lack time or expertise to manage your finances, or want professional guidance on major financial decisions like retirement planning, investment strategies, or insurance needs.

How do I know if an adviser is qualified?

All financial advisers in New Zealand must be registered on the Financial Service Providers Register (FSPR). You can check their registration status, qualifications, and any disciplinary actions on the FMA website. Look for advisers with relevant qualifications like CFP (Certified Financial Planner) or similar credentials.

How much does financial advice cost?

Financial advice costs vary depending on the adviser and services provided. Fee structures include:

• • Fee-for-service: $150-$500 per hour or fixed project fees
• • Commission-based: Paid by product providers (disclosed to you)
• • Asset-based fees: 0.5%-2% of assets under management annually
• • Hybrid: Combination of fees and commissions

Are there any free services?

Many advisers offer free initial consultations (30-60 minutes) to discuss your needs and their services. Some basic advice on simple matters may be provided at no cost. However, comprehensive financial planning and ongoing advice typically involve fees.

What should I expect to pay for a financial plan?

A comprehensive financial plan typically costs between $2,000-$5,000 depending on complexity. This includes analysis of your current situation, goal setting, strategy recommendations, and implementation guidance. Ongoing reviews may cost $500-$1,500 annually.

What services do financial advisers provide?

Financial advisers can help with:

• • Retirement and superannuation planning
• • KiwiSaver optimization
• • Investment portfolio management
• • Insurance and risk management
• • Mortgage and debt management
• • Tax planning strategies
• • Estate planning
• • Business financial planning

Should I choose a specialist or generalist adviser?

This depends on your needs. Generalist advisers provide comprehensive financial planning across all areas, while specialists focus on specific areas like mortgages, insurance, or investment management. If you have complex needs in one area, a specialist might be better. For overall financial planning, a generalist is often more suitable.

Can advisers help with KiwiSaver?

Yes, many financial advisers can help optimize your KiwiSaver including fund selection, contribution strategies, and withdrawal planning for first home purchases or retirement. Some advisers specialize specifically in KiwiSaver advice.

How do I choose the right adviser?

Consider these factors:

• • Qualifications and experience
• • Services offered and specializations
• • Fee structure and transparency
• • Communication style and availability
• • Client reviews and testimonials
• • Professional registrations and compliance

What should I bring to my first meeting?

Prepare these documents:

• • Recent bank and investment statements
• • KiwiSaver statements
• • Insurance policies
• • Mortgage and debt information
• • Tax returns (last 2 years)
• • List of financial goals and concerns