Quick answer: At Decision Makers in Tauranga, your first hour is free and it’s about getting to know you: why you’ve come in, where your finances are at and what you’d like to do. We don’t give advice in that meeting. You fill in our planning software and check your Getting to Know You book, then we write your financial plan. The plan is a set fee of $1,250 including GST, and the process usually takes four to six weeks.
What happens in the first meeting with a financial adviser?
The first hour is free, and it’s about getting to know you, not giving advice. We meet in person or by video call, whichever suits you. Our first priority is finding out what made you come in to see us, in other words what your “why” is.
Everyone’s reason is different. Some of the most common ones we hear are:
● “I’ve received an inheritance. I’ve never had this much money before, and I don’t know what to do with it.”
● “I want to do a renovation, but I don’t know if I’ll have enough left for retirement.”
● “I just don’t know what I’m doing. I’m too old to be ignoring these things and I need to get in control of it.”
● People nearing retirement who have all their ducks in a row, except the ducks aren’t sitting in one place and they want to simplify.
From there we find out as much as we can about you, because the best way forward isn’t the same for everybody. In that first hour, we’d like to know:
● What’s your financial situation like now?
● Have there been any major changes to it?
● Do you already have plans for what you’d like to do?
● Are you considering things you don’t know if you can afford?
We don’t give advice in that first hour because we can’t. We don’t know your whole position yet, and we don’t know enough to give you advice. That first hour is really fact-finding and making sure we can actually help you.
What do I need to do before I get my financial plan?
You’ll fill in our planning software Planolitx, which shows us where you’re at now. Then you’ll check a book called Getting to Know You before we give any advice.
Most people fill out the software at home, where they have all their information on hand. We know it’s not everyone’s cup of tea, and some people really don’t like tiny boxes. We’re happy to sit down with you and fill it in together. If you’d rather just talk to us and have us fill it all out, that’s fine as well.
Once the software is complete, we send you your Getting to Know You book. It’s a picture of where you are right now, and it’s simply a check: does this look like you? Does it look realistic? Is this where you’re at right now? That book is really important, because it’s what lets us see where we can make improvements and where we can help.
Part of the process is also working out what level of risk is right for you. We use a questionnaire to understand who you are, what types of risk you’re willing to take and what types you’re not. This is called your risk profile, and it’s extremely valuable information for us.
How long does it take to get a financial plan?
It usually takes four to six weeks from when you first see us to having your financial plan.
Some people take longer, and that’s normal. Usually it’s because they’ve never had to put all their information in the same place before. They know bits and pieces, and expenses are the part everyone gets caught up on, because people often don’t actually know how much they’re spending. That part normally takes the longest for everybody.
It’s not one-and-done. We often find there’s information missing, or a question has been misinterpreted. That’s all part of the process, and we like to make sure everything is correct before we start giving advice.
How much does a financial plan cost?
Our financial plan is a set fee of $1,250 including GST, and you can come to us just for the plan. Its formal name is a statement of advice, but most people know it as a financial plan.
There’s no minimum amount you need to have, as long as you can pay the plan fee. The whole point is to work towards something, so if you know where you want to go and you want help getting there, we can help with that too. Sometimes people go through the process, get clarity on their own and decide not to go ahead with a plan, and that’s perfectly fine.
I don’t think everyone understands the type of information we use or how we use it. A financial plan can look at:
● how to pay off your mortgage quicker
● how to boost your KiwiSaver, and whether you can afford to
● whether you’re in the right KiwiSaver fund
● if you have an inheritance, how it can be used, how to get the most benefit from it and where it should go
We’re independent, so we don’t have quotas to fill or particular places where we have to put a certain amount of funds. Whatever we advise you to do, we make sure it’s right for you, and we choose it on your behalf.
I’m also a member of the Responsible Investment Association Australasia. If you don’t want certain things in your portfolio, such as animal testing or controversial weapons, we can make sure they’re kept out. One that’s coming up a lot lately is human trafficking, mainly because the modern slavery bill has put it at the forefront in New Zealand. We can help with these concerns in your KiwiSaver as well as in your other investments.
What happens after the plan is written?
You become a client, and we like to think of you as a client for life.
One of my favourite things about taking on clients is that once you’ve been through this process, we get to have a long-term relationship with you. We can be your sounding board. We check in every year with an annual review to make sure everything is still on course, and I’ll travel around New Zealand to meet clients face to face for their reviews. If something major happens during the year, you can call us and say, “Hey, this has happened. Can we review everything?” The answer is a definite yes.
The part we enjoy most is what comes after all of that, which is simply doing life with people.
If you’re thinking about seeing a financial adviser
At the SiFA conference, Jehan Casinader shared survey findings showing that 42% of people are uncomfortable talking about their finances, yet 67% are willing to get financial advice.
Only 28% of New Zealanders are actually getting it. It might feel uncomfortable, and yes, a little scary. We’ll do our utmost to make sure you come out with more knowledge, feeling more in control, with a clearer picture of where you’re at and how to get where you want to be, all with zero judgement. It’s your money, not mine.
To get started:
Book your free first hour, and think about why you’re coming in.
Start pulling your information together, especially your expenses.
Fill in the planning software, and ask for help if you need it.
Read your Getting to Know You book carefully and tell us if anything doesn’t look like you.
Decide whether you want us to write your financial plan.
Tanya Gilchrist is a Certified Financial Planner and financial adviser at Decision Makers in Tauranga, working with clients around New Zealand, with over 20 years’ experience as an investment adviser. She holds a BBus in Financial Planning and Advice and is a member of Financial Advice NZ, the Responsible Investment Association Australasia and SiFA.
