The key is to arm yourself with a basic level of knowledge, so that you can make an informed decision. Just as you would research a car purchase before you walk into the dealership, you should do no less when choosing the person or organisation who will help to shape your wealth, lifestyle and future.

Here are five questions to ask yourself and your prospective financial planner:

1. Am I clear on my objectives?

A financial planner will give you a roadmap, but you need to be clear on the destination. This means having clarity around your financial goal and the reasons for reaching it. The approach that you develop with a financial planner must be built on achieving the goals that are most important to you.

2.Do I understand risk?

Any investment decision entails some degree of risk. It’s not possible to or even necessary to avoid all risks – the key is to understand them, and then ensure your investment advice takes account of them. Risk is also closely linked to your time horizons for investment. To read Hewison’s Guide to Financial Risk, click here.

3. What management approach do I need?

Building and protecting wealth means choosing the right investments for your needs and ensuring you have a selection of investments that requires the least amount of risk to achieve your goals. Your investment strategy needs a level of active management that can weather all market conditions and remain consistent with your personal financial goals.

4.What are the fees and costs?

The thinking behind many of the FOFA reforms is that if financial planners receive commissions when they recommend investment products, this will sway their recommendations. Therefore, doing away with this type of incentive is a positive step.