When it comes to seeking financial advice in Australia, it's important to differentiate between general product advice and personal financial advice. As a new investor, understanding these terms will help you navigate the financial services landscape and ensure you receive the appropriate guidance.

General product advice refers to information about financial products or strategies that is not tailored to an individual's specific circumstances. This type of advice is often provided by financial professionals, including investment companies like InvestSMART, to educate clients about various investment options, their potential benefits, and associated risks. It is important to note that general advice does not take into account your personal financial situation, goals, or needs.

Examples of general product advice include:

Requesting product information: "What are the key features and benefits of this particular managed portfolio?"

Comparing investment options: "How do index funds compare to actively managed funds in terms of fees, historical performance, and potential risks?"

Seeking clarification on investment terms: "What is the difference between a growth and an income-focused investment strategy?"

Requesting market insights: "What are the current trends in the Australian share market, and how might they affect investment opportunities?"

Asking about regulatory considerations: "What are the general tax implications of investing in a particular type of financial product?"

In contrast, personal financial advice is customised to suit your unique circumstances, factoring in your financial situation, objectives, and risk tolerance. This type of advice takes into account elements such as your income, expenses, assets, liabilities, and investment goals to offer tailored recommendations that can assist you in reaching your financial targets. Personal financial advice typically involves spending time with a financial adviser to gain a comprehensive understanding of your individual situation. Owing to the time invested, financial advisers are remunerated by charging fees for their expert guidance.

Examples of personal financial advice include:

Seeking specific recommendations: "Which investment product would be best for me to achieve my goal of buying a house in 10 years?"

Requesting advice on asset allocation: "How should I distribute my investment funds across different asset classes to ensure a comfortable retirement?"

Asking for guidance on tax implications: "What investment options should I consider to minimise my tax liability?"

Inquiring about debt repayment strategies: "Which of my loans should I prioritise for repayment, given my current financial situation?"

Asking for risk management guidance: "How can I best manage the risks in my investment portfolio to protect my family's financial future?"

Due to regulatory restrictions in the Australian financial services industry, investment companies like InvestSMART can only provide general product advice. We cannot offer personal financial advice or specific recommendations based on your unique situation.

If you require personal financial advice, it is recommended that you consult a qualified financial adviser who can assess your individual needs and provide tailored guidance to help you make informed decisions about your investments.

To find a qualified financial adviser in Australia, you can visit the following websites:

ASIC's MoneySmart website (https://www.moneysmart.gov.au/investing/financial-advice)

The Financial Planning Association of Australia (FPA) (https://fpa.com.au/)

The Association of Financial Advisers (AFA) (https://www.afa.asn.au/)

These websites offer tools to help you locate qualified financial advisers in your area. Before engaging a financial adviser, ensure they hold an Australian Financial Services (AFS) Licence or are an authorised representative of a licenced financial services provider.

In conclusion, understanding the difference between general product advice and personal financial advice is crucial for new investors in Australia. While we can provide you with valuable information about various investment products and strategies, it is essential to seek personalised advice from a qualified professional to ensure your financial decisions align with your specific circumstances and goals.