Do you trust your financial advisors?

If the answer is yes, it is most likely that your trust is well placed. We’re not a bad bunch overall and generally have your best interests at heart. However, maybe you are finding it difficult to completely trust the people you have put in control of your financial future. If this is the case, there are a few questions you can ask yourself to make sure you’re on the right track.

Does your advisor educate you along the way?

It seems self evident, but first and foremost, the role of an advisor is to provide advice. However if the advice being provided to you often leaves you smiling and nodding, but not understanding, it could be because your advisor isn’t giving you enough information to make an informed decision.

A good advisor has time to explain what’s going on with you and should never make you feel out of your depth (for long) or rushed when you meet with them. Your relationship should be seen as a partnership. At the end the day it is your money and you are in control.

Are they honest about the risk factor?

It is very important that you as the client understands the risk you are taking.  A good financial advisor will patiently explain the risk factors and ensure that you are comfortable with any recommendations. 

If you are not comfortable, your advisor should change the advice as it should always be your choice how much risk you take on. 

Do you know what you’re paying for?

All financial advisors need to charge fees, however they should be completely up-front with you as to what those fees are and how they will be charged.  Ideally, the fees should be completely transparent and easy to understand.

They should also explain what the fees cover so that you fully understand the service that you have signed up for.

Do they remember your goals, beyond your first meeting?

Your financial advisor should not only be aware of your personal and financial goals, they should care about them too! If you find that you have to remind them of why you’re doing something or refresh them on details about the purpose of your investments – it’s not a good sign.

A good advisor will regularly reference your goals, put forward new advice as it becomes relevant and assist you in reaching your targets as quickly as possible. You should always feel comfortable in reaching out to them for advice with any new knowledge that may change things or assist them in providing better advice.

Have they shown their expertise?

Realistically, this is what you’re paying for. The skill and expertise of your financial advisor should be self-evident through the advice they provide. From straegy to investment expertise, your advisor should be providing valuable information that ensures you are better off for having used their services.

A good advisor is a seasoned professional. They should be an expert in their field and should be using this expertise to benefit you as their client. Ideally your advisor should have at least 5 years of experience and of course have the proper licensing and registration.

Most importantly, do they have integrity?

All the other questions have really been leading up to this. Are the people you employ as your financial advisors, people of integrity? You need to be working with people that either share your values or have values you respect. At the end of the day, personal integrity and values are what separate bad advisors from great advisors.

A great advisor has the integrity to educate you, be honest with you, not rip you off, cares about your goals, and will without question, do everything they can to help you. You will find them at Fortunity, call us today on 4304 8888.