What to expect from your financial adviser

If one of your New Year’s resolutions is meet with a financial adviser and put a financial plan in place, you need to know exactly what you can expect from your adviser. Financial adviser Warren Ingram who was nominated as the FPI 2011 Financial Planner of the Year has put together some pointers.

The Financial Planning Institute of Southern Africa (FPI has put together an easy six step planning process that one should go through with a CERTIFIED FINANCIAL PLANNERĀ®, to ensure a stress free beginning to the New Year:

Establishing and defining a professional relationship

The financial planner should clearly explain or document the services to be provided to you and define both his/her and your responsibilities. The planner should explain clearly how he/she will be paid and by whom. You and the planner should agree on how long the professional relationship should last and on how decisions will be made.

Gathering data, including goals

The financial planner should ask for information about your financial situation. You and the planner should mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk. The financial planner should gather all the necessary documents before giving you the advice you need.

Analysing and evaluating your financial status

The financial planner should analyse your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you have asked for, this could include analysing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies

Developing and presenting financial planning recommendations and/or alternatives

The financial planner should offer financial planning recommendations that address your goals, based on the information you provide. The planner should go over the recommendations with you to help you understand them so that you can make informed decisions. The planner should also listen to your concerns and revise the recommendations as appropriate.

Implementing the financial planning recommendations

You and the planner should agree on how the recommendations will be carried out. The planner may carry out the recommendations or serve as your “coach,” co-ordinating the whole process with you and other professionals such as attorneys or stockbrokers.

Monitoring the financial planning recommendations

You and the planner should agree on who will monitor your progress towards your goals. If the planner is in charge of the process, he/she should report to you periodically to review your situation and adjust the recommendations, if needed, as your life changes.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Join the Maya on Money weekly newsletter

Join the Maya on Money weekly newsletter

For updates that impact your day-to-day money decisions.

You have Successfully subscribed. Please check your inbox to verify your subscription.