The right kind of financial advice can really make a big difference. It can help you:
- set your financial goals and achieve them
- make the most of your money
- feel more in control of your finances and your life
- avoid expensive mistakes
- protect your assets.
Financial advice can give you confidence that your future plans are achievable. If you’re not on track to achieving your goals, financial advice can help you put the right strategies in place, or come up with more realistic goals. Your financial adviser or broker should be seen as your partner for life. This is why it is important to choose one carefully. When dealing with an adviser you should insist on seeing their training credentials, FAIS accreditation, the products, solutions and services that they are able to provide and, if they are independent, a list of company contracts.The financial adviser or broker you choose needs to thoroughly understand your investment requirements as well as your current financial situation.
WHAT SHOULD YOU CONSIDER WHEN CHOOSING AN ADVISER?
All financial advisers and intermediaries are required to be “fit and proper” in terms of the requirements of the Financial Advisory and Intermediary Services Act (FAIS). Ask to see their qualifications
Make sure that your Financial Adviser is employed by a reputable company or should they run their own practice that they have the expertise, track record and experience to best advise you.
- Trust and Integrity:
Referrals from people you know and trust are a good way of selecting a financial adviser. You can also choose an adviser that represents a respected financial institution.
Look for a financial adviser that has access to a range of specialist support services that you might need, for example, tax planning.
- Advice, Analysis and Products:
The role of a financial adviser is to assist you to analyse your personal circumstances, recommend products and compile a financial plan to help achieve your goals. Product recommendations should be as a consequence of such a personal analysis. Your financial adviser should reassess your financial plan on a regular basis.
Each person has a unique set of financial needs, and what is right for one person is not necessarily right for another. A financial adviser should provide guidance and support based on your personal circumstances. Financial advisers may have contracts with a range of companies. Get a list to get a sense of how reputable the companies are and how many options they can offer you. Some advisers are ‘tied agents’, which means they work for just one company. Others are independent agents who can choose how many companies they wish to contract with. You may want someone who is expert in the products of a particular company, or you may prefer to seek independent advice.
- Commitment and Passion:
Financial advisers are passionate about empowering their clients to achieve their goals.
- The Comfort Factor:
Your financial adviser should be able to identify with your personal circumstances and priorities. Otherwise it will be very difficult for them to help you identify and realise your financial goals.