A list of key points to ask your financial adviser to-be
We believe every single one of us has financial goals and plans, including you. Some of us focus on one goal at a time, others have multiple goals they want to achieve at the same time – like buying a house, a vehicle, , retirement planning, investment, and many more.
However, having multiple goals is quite tricky if you don’t manage your finance well. That’s why financial advisers exist in this world: to help you manage and reach your financial goals. On the other hand, choosing a financial adviser is another story. There are many things to consider before signing a contract with one. Read on below to find a list of key points to ask a financial adviser before saying yes to their service.
Experience and qualifications
You have every right to know where the adviser went to get their diploma or degree and whether they studied relevant fields – accounting, economy or others. A credible adviser will gladly let you know about their education and financial courses or training they have taken to meet continued professional development (CPD) requirements.
You should also ask about their current and past clients, whether they’ve advised clients with similar problems as you, what advice they gave them, and what financial products or institutions they referred their clients to. This will help you get a better view of how the financial adviser handles their clients.
Their approach to clients
Every client has different needs and goals. It’s important to get to know an adviser’s approach to a unique client, so you get a picture on how they will work with you.
A good financial adviser should be able to understand all your financial goals, help you sort and prioritize them, communicate with you if some goals aren’t realistic and provide you with alternatives, and create strategies to help you achieve your goals in a timely manner. If you agree and follow the adviser’s advice, you should be able to contact them if you have any questions or complaints about the financial products they’ve recommended to you. You and your adviser should also have regular financial reviews to see how your plans progress.
Recommended financial products and adviser’s incentive
It is very common for a financial adviser to receive an incentive from financial institutions if they make sales, especially if they are in-house financial advisers. In-house advisors usually work for banks or other financial institutions, so they tend to recommend products from the company they work for. But never, ever agree to an adviser’s advice without asking questions.
If your adviser recommends an in-house product, ask them how this recommendation will benefit you and how other products are not better than their in-house products. You are also allowed to ask whether they receive any incentive or benefit from the product they recommend. Ask your adviser to compare several products, help you understand the pros and cons of each product, and leave the final decision for you to make.
Remember that a good financial adviser never makes you do anything. Their job is to help you understand the financial options you have, and every recommendation they give should drive you towards your financial goals. So, never blindly follow an adviser’s recommendation because, at the end of the day, you are the decision-maker.