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1 Financial advice and youWhere to start2 Financial advice and youAbout ASIC and MoneySmartThe Australian Securities and Investments Commission (ASIC) regulates Financial advice and Financial products. ASIC s MoneySmart is our website for consumers and investors to help you make smart choices about your personal finances. It offers calculators and tips to give you fast answers to your money questions. Visit or call ASIC on 1300 300 this bookletThis booklet will help you with: Xthe kind of Financial advice you need X the best place to get advice X how to get the most from your conversations with a Financial if you re on a modest income you can benefit from Financial advice .

2 You may even be able to access some kinds of advice for free. This booklet explains all these things and get advice ? 4 Where to start 6 Choosing an adviser 11 Working with an adviser 14 What to look for in the advice 18 Paying for advice 20 How to complain about Financial advice 24 Ending your relationship with an adviser 25 Glossary 264 Financial advice and youWhy get advice ?The right kind of Financial advice can really make a big difference. It can help you: Xset your Financial goals and achieve them Xmake the most of your money Xget any government assistance you re entitled to Xfeel more in control of your finances and your life Xavoid expensive mistakes Xprotect your advice can give you confidence that your future plans are achievable.

3 If you re not on track to achieving your goals, Financial advice can help you put the right strategies in place, or come up with more realistic study: Jim gets a reality check Jim was 55 and wanted to retire in a few years. After retiring, he planned to buy a new car and travel overseas for at least 6 months. Jim thought he d need about $50,000 a year in retirement income. Jim went to see a Financial adviser about his plans. The adviser explained that Jim didn t yet have enough money to fund the retirement he d like. To help Jim get closer to achieving his retirement goals, the adviser outlined the pros and cons of different strategies, including working longer, increasing super contributions and downsizing to a smaller property.

4 The adviser also explained how Jim s retirement income would be reduced if he bought a car and went on a big trip. After receiving this advice , Jim decided he needed to rethink the length of his trip, stick to a budget and increase his super contributions. Jim was glad he got Financial advice as he now has a realistic plan for his retirement and the steps to achieve it. 5 When advice can help youThere are some turning points in your life when professional Financial advice may be particularly useful, including: Xapproaching retirement Xthinking about starting a family Xbeing made redundant Xinheriting and other life events might prompt you to look at your Financial tipUse ASIC s MoneySmart online retirement plannerTo find out the income you can expect to get in retirement from your super and age pension use ASIC s MoneySmart retirement planner at It also lets you explore ways to better meet your licensed adviceThroughout this booklet we use the term Financial adviser to describe someone who holds an Australian Financial services (AFS) licence or is authorised by an AFS licence holder.

5 An adviser may also call themselves a Financial planner . See page 12 for more information on how to check the Financial advisers register to see if an adviser is licensed to give you Financial advice and youWhere to startYou may have avoided getting Financial advice because you re not sure how a Financial adviser can help you. You may also think you ll have to pay for a comprehensive and expensive Financial plan. Depending on the kind of advice you need, you may not. Smart tipGet free Financial counsellingIf you need Financial advice because you re having trouble paying your bills or need to sort out your debts, see a Financial counsellor first.

6 To find your nearest counsellor visit or call the National Debt Helpline on 1800 007 tipUse ASIC s MoneySmart savings calculatorSet up a plan to reach your savings goals with ASIC s MoneySmart savings goal calculator at informationInstead of Financial advice , you may simply: Xwant factual information about different Financial products and strategies Xneed to understand more about Financial services is a lot of information online that can help you with questions about your finances: XASIC s MoneySmart website XAustralian Securities Exchange s online courses and education website Xyour super fund Xfinancial columns and blogs. Banks, credit unions or building societiesBank, credit union and building society staff can give you information about their products such as savings accounts and term deposits.

7 This might be all the information you need if your main Financial goal is saving for a home or building a savings buffer. Remember they won t tell you about all the products on the market so you should shop around and compare advice and youYour super fundYour super fund can provide factual information, including: Xinvestment options within your current fund Xhow to make extra contributions to your current fund Xhow to consolidate multiple super funds Xinsurance options within your current Department of Human Services Financial Information Service offers free money seminars all over Australia. Topics include: Xmanaging your money Xreducing your mortgage Xinvesting Xunderstanding Information Service officers can also give you information over the phone or at a face-to-face interview.

8 Visit or call 13 23 00 for more information. 9 General adviceYou can get general advice about Financial products or investing from a Financial adviser. General advice does not take into account your particular circumstances, such as your objectives, Financial situation and needs. For example, you may receive general advice when you attend a seminar about investing. Smart tipFinancial services from an accountantIf your accountant provides advice about your self-managed super fund, you should check they hold an Australian Financial services (AFS) licence or are authorised by an AFS licence holder. Search for their name on ASIC s Financial advisers register to check what products they can advise on.

9 Case Study: Kathy gets general advice from her super fundKathy and her husband had just bought a new house. Kathy decided to check if the life and total and permanent disability insurance she had through her super fund was enough to cover her share of the repayments if she died or couldn t work any more. When she called her super fund the person she spoke to explained they could only give her general advice . Kathy was given information about the features of the insurance products and her current level of cover. She was also advised to consider all her debts and expenses not just her mortgage repayments. Kathy realised she needed to have a closer look at her finances to work out the level of cover she advice and youPersonal adviceIf you want a recommendation that takes your personal situation into account, you need personal Financial advice .

10 For this kind of advice , it s important that you only talk to a licensed or authorised Financial page 12 for more information on finding a licensed of personal advicePersonal advice can range from simple advice on one topic to a comprehensive Financial examples of personal advice are: XSimple, once-off advice on one issue This addresses a particular aspect of your finances (for example, the best way to contribute to your super). XBroader Financial advice This involves a comprehensive Financial plan to help you set goals and covers investments, superannuation, insurance and retirement planning. XOngoing advice This involves regular reviews with a Financial planner that reassesses your goals, Financial position, strategy and page 14 for more information on how you can agree on the scope of the advice with an ways to get information or adviceFactual information or advice on simple topics can be given by phone, online advice services or email, while complex advice is usually better suited to a face-to-face meeting or video options such as Skype also allow people in rural and remote areas to access cost of the advice will depend upon the scope and kind of advice you receive.