Getting help

Managing your money can be hard to do all by yourself.  Resources like Sorted can take you a long way.  But sometimes you need a little extra help keeping on the right track or making decisions.

There are a variety of professional advisers that can help you. They range from budget advisers to bank staff, mortgage brokers, financial planners, lawyers and accountants. Some people even use financial coaches and mentors to help them get ahead.

• What do they do?
• How do they charge?
• What is good financial advice?
• How can I choose a good adviser?
• Who can I complain to?

What do they do?

Budget advisers associated with the New Zealand Federation of Family Budgeting Services give free advice about budgeting and money management. They're a good place to start and can in some instances negotiate with lenders on your behalf, or give advice about government support entitlements, debt consolidation, bankruptcy, and help with other issues such as addictive behaviour.

Bank staff such as personal bankers can give useful advice about how to organise your bank accounts to ensure you can pay bills each month, and how to pay off loans faster. They can also advise about mortgages and loans, but are not independent – they will only offer products provided by their bank.

Mortgage brokers sell mortgages and independent ones will offer products from a number of lenders – giving you more choice. Many are willing to look at their clients' overall financial position and may help with budgeting. Some also sell health and life insurance or have links to an insurance broker who can sell these products.

Financial planners and sharebrokers give advice about investing in shares, funds and sometimes property. They are able to help you construct a portfolio of investments that best suits your needs. For advice on how to choose one, visit our Advice checklist.

If your taxes are complex or you need legal advice then an accountant or lawyer can be helpful. Community law centres also provide free legal advice in many areas of the country.

Other professionals who you may wish to visit include estate planners like Public Trust.

Some people choose to employ financial coaches and mentors who will help motivate them to meet goals.

How do they charge?

Budget advisers and bank staff do not charge you for their time and are either volunteers or paid a salary. Mortgage brokers, insurance brokers, and financial planners usually take commission from lenders and other financial institutions instead of charging you up front. Some charge by the hour instead and rebate the commissions they earn to you. The advantage of paying by the hour is these professionals will consider a wider pool of investments for you, not just those that pay commission.  Accountants, lawyers, and coaches usually charge by the hour. See Paying your adviser for more information.

What is good financial advice?

Good financial advice helps you get ahead financially. It should be focussed on your goals and overall financial situation and take into account your short, medium and long term needs.  It should also offer a frank and honest assessment of your current situation.

The costs of financial advice should be in keeping with the likely benefit.

It's always a good idea to ensure that the person providing advice is independent and selling products on behalf of a wide range of companies. You should always find out how that person is paid for the advice they give and how much they will earn on a sale. A salesperson's judgement can be clouded by the amount of commission they earn from one product compared to another. If there is a large amount of money involved, such as the purchase of a property it's always a good idea to get independent advice from your own accountant or lawyer.

How can I choose a good adviser?

There are many good advisers out there. But it's a case of buyer beware. Before finding one you must first understand your needs and (if you’re looking for investment advice) your investment profile. Do you want simple budgeting advice or do you need assistance with investment options?

You can find a budget adviser under Budget Advice Services in the White Pages, by calling 0508 BUDGET (0508 283 438) or visit the Federation of Family Budgeting Services website.

For paid advisers ask friends, family and colleagues for recommendations and then interview several candidates.  Make sure you ask tough questions, because it's your money at stake. It's also a good idea to take up references and talk to former or existing clients if you can.

Always check your advisers' credentials. Is he or she a certified financial planner, or chartered accountant, for example? Find out if they belong to any industry bodies such as the Institute of Financial Advisers, New Zealand Mortgage Brokers Association, or the New Zealand Law Society.

Who can I complain to?

If things go wrong it's a good idea to complain to the adviser first. If that fails then complain to the adviser's professional body.  It is also possible to apply to the Banking Ombudsman or the Insurance & Savings Ombudsman, who can investigate complaints about companies in their schemes.

You can make companies to relevant bodies such as the Commerce Commission or Securities Commission. But they do not take individual cases on behalf of consumers.

Another option could be to contact EUFA (Exposing Unacceptable Financial Activities) or your solicitor. EUFA is a group set up to help those who lost money because of poor advice or behaviour by suppliers of financial products..