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Speaker 1: You're listening to the Saturday Morning with Jack Teams podcast

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Speaker 1: from news talks, they'd be.

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Speaker 2: Fourteen to eleven non news talks, there'd be time to

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Speaker 2: get up with their personal finance expert. Ed McKnight from

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Speaker 2: Opie's Partners is here this morning. Get a Ed.

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Speaker 3: Great to be here, Jack this morning.

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Speaker 2: You have for us advice on choosing the right type

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Speaker 2: of financial advisor and let me guess. Let me guess

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Speaker 2: the right type of financial advisor is called Ed McKnight

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Speaker 2: and works for OPI's Partners.

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Speaker 3: Well, definitely not, because I'm not actually a financial advisor.

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Speaker 3: I'm just a lowly economist. Jack. Well, this is critical.

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Speaker 2: It is critical, right because people can with the terms.

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Speaker 2: It's kind of like the difference between psychologists and psychiatrists.

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Speaker 2: People can get a bit confused sometimes.

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Speaker 3: Well, it is important because sometimes people email men say Ed,

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Speaker 3: can I get your advice about my situation? And I

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Speaker 3: say no, because I'm not qualified to. I can tell

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Speaker 3: you what's happy with the economy. But to find a

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Speaker 3: financial advisor, you've got to start by asking, well, what

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Speaker 3: type of financial advisor you are after? Yeah, because it's

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Speaker 3: a bit confusing in New Zealand, so they all call

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Speaker 3: themselvesinancial advisors, but there are effectively five different types. You've

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Speaker 3: got mortgage advisors who help you get a home loan.

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Speaker 3: You've got insurance advisors who will sort out your house

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Speaker 3: insurance or your life insurance. We've got investment advisors. These

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Speaker 3: are people who help you out with shares and funds.

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Speaker 3: Then you've got property investment advisors who help you with

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Speaker 3: property investment. And then you've got people who specialize in budgeting.

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Speaker 3: And the really confusing thing in New Zealand is all

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Speaker 3: of these are legally financial advisors, and they should call

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Speaker 3: themselves financial advisors, but they each specialize in one different thing.

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Speaker 3: There aren't many all rounders in New Zealand who will

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Speaker 3: do every single one of these things because they're actually

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Speaker 3: quite complicated. So the first thing you've got to do

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Speaker 3: is be like, Okay, if I want to be better

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Speaker 3: with money, what does that mean. Well, if you're trying

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Speaker 3: to buy a house, you probably talk to a mortgage advisor.

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Speaker 3: If you're worried about the risk that you get sick

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Speaker 3: and won't be able to earn an income, you go

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Speaker 3: and talk to an insurance advisor. But there's the first

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Speaker 3: step that you.

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Speaker 2: Go for yeah, okay, that's a very good point. Five.

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Speaker 2: And they can all call themselves financial advisors quite a

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Speaker 2: few ways. So if you work out exactly what you

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Speaker 2: need to prioritize, so whether or not you're looking for

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Speaker 2: investment advice, property investment advice, insurance advice, etc. Then you

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Speaker 2: work things down to a short list.

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Speaker 3: That's the main thing. And you don't want to just

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Speaker 3: go to one and think, yep, they'll be okay. So

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Speaker 3: I always said to people, create a short list of

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Speaker 3: three names maximum. And the reason is that if you

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Speaker 3: try and create a list of ten people that you're

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Speaker 3: going to really do some due diligence on and check out,

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Speaker 3: it's just going to be too many. In all likelihood

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Speaker 3: you're probably not going to do anything at all. But

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Speaker 3: I think don't do one, don't do ten. Three is

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Speaker 3: a really good number. Now, in terms of creating that shortlist,

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Speaker 3: my favorite thing is just to go to Google and

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Speaker 3: I'll tell you what to look for in a second.

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Speaker 3: But I also know people talk to chat, GPT, get

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Speaker 3: recommendations from friends, but also get recommendations from maybe an

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Speaker 3: advisor you're already using. The only thing I'd say about

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Speaker 3: getting a recommendation from an advisor you already use. Is

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Speaker 3: that a lot of advisors will have referral relationships. So

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Speaker 3: if you go to a mortgage advisor that you like,

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Speaker 3: you say, who should I use for insurance and investments,

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Speaker 3: They'll probably tell you to use the same person who

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Speaker 3: sends them business back. And so that you're not necessarily

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Speaker 3: getting the best person, you're getting somebody who they are

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Speaker 3: mates with.

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Speaker 1: You know.

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Speaker 3: Cred a. Head to Google, check out top financial advisors,

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Speaker 3: create a little shortlist, and then you can really dig

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Speaker 3: into research. And when I say research, I'm not just

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Speaker 3: talking about going to their website and seeing do they

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Speaker 3: have pretty pictures or not? Or do I like the

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Speaker 3: colors on the website. I think there are five things

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Speaker 3: that you should look at, but the most important one

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Speaker 3: is something that your eyes will glaze over at. It's

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Speaker 3: called a disclosure statement. Now legally, legally, every financial advisor

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Speaker 3: in the country must have a disclosure statement on their website.

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Speaker 3: Now you might be like, oh, ed, what does that mean.

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Speaker 3: Isn't that interesting? Well, it's very important because a lot

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Speaker 3: of financial advisors in New Zealand won't charge your feet. Instead,

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Speaker 3: they'll earn commission, maybe from the bank. If you decide

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Speaker 3: to get a mortgage from them, or from an insurance

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Speaker 3: company if you decide to get insurance from them, And

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Speaker 3: on that disclosure statement it must say how the advisor

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Speaker 3: is paid, any conflicts of interests, what services they provide,

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Speaker 3: and which product providers they use, whether it's banks or

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Speaker 3: insurance companies. Now you might decide that, actually, I want

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Speaker 3: to use a mortgage advisor who's got as many banks

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Speaker 3: as possible. Or you might say, well, why is it

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Speaker 3: that this insurance advisor is only using one insurance company.

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Speaker 3: That means that they can't really give me advice about

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Speaker 3: the best insurance company for me or the right one.

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Speaker 3: So definitely head to the disclosure statement on their website

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Speaker 3: and also make sure you're checking out they can they

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Speaker 3: prove their expertise to me, So is there any content?

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Speaker 3: Are there any qualifications that tell me actually they are

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Speaker 3: good at their job?

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Speaker 1: Yeah?

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Speaker 2: Okay? And then from that point I guess your book

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Speaker 2: meetings and work out if it's the right fit.

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Speaker 3: Yeah, book three meetings. Figure out who's you respect enough

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Speaker 3: to give you good advice and who jells.

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Speaker 2: You're very good? Hey, thanks so much, Ed, have a

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Speaker 2: great weekend. We'll make sure All of it's tips are

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Speaker 2: up on the News Talks EDB website as well, so

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Speaker 2: you can work through them stage by stage.

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Speaker 1: For more from Saturday Morning with Jack Tame, listen live

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Speaker 1: to Newstalks EDB from nine am Saturday, or follow the

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