When the time comes for you to put your money towards an investment, your financial planner should be knowledgeable in accommodating any inquiries and provide you with appropriate suggestions on how to achieve your investment goals. Are you getting any form of skepticism or hesitation from your financial planner? Here are key signs to consider in spotting a poor financial planner:
Vague explanations. Providing clients with vague explanations show inexperience in certain investment types. Your financial planner should be able to explain all key points in detail and accommodate all your inquiries as specific as possible.
Dismissing the idea right away. As their job involves explaining the investment types that suit you, dismissing the idea outright is a key sign of a poor financial planner. They are more concerned about what’s easy and not what is best for you.
Encouraging you to invest without saying why. Sure, they see that the investment type is perfect for you, but why should you invest? If they are unable to provide you with an answer that you’re satisfied with, move on as your financial planner should provide advise that is not only suitable for you, but something that you should be comfortable with.
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Are you tied to any financial institution? Do ask your financial planner if they are receiving any form of commission from other businesses to ensure that your best interest is prioritized and you will be aware of other conflicting influences. When hiring a financial planner, always follow the money trail.
Can you explain your fee structure? For financial planners, less doesn’t mean the best. Some financial planners cost more than others as they specialize and are licensed in certain areas. Always check if the fees are justifiable, and understand why.
What are your affiliations? Is your financial planner a member of a financial body? It is important that you ask who they are affiliated with, as it may be of benefit to you in the future. Investigate the legitimacy of the affiliation for your own peace of mind.
Are you licensed? There are several forms of financial licenses available, so it is very important that you check what type of advice your financial planner is licensed to provide.
How far down the line can you support? Explain your goals and verify if your financial planner can guide you all the way through or whether you’ll have to be passed on to someone else.
What is your specialization? Property advisers specialize in a vast array of dwellings, so it is imperative that you ask what type of property they specialize in. Ensure that the property type is aligned with your investment goals.
Do you have professional indemnity insurance? This gives you protection in case something goes wrong, most especially for buyers’ agents. The coverage and rules of this insurance type varies between states and territories.
Is there a way to file a complaint or feedback? Not only does this promote an open line of communication between you and your planner, but this also provides you an appropriate venue to air out your concerns, especially if you’re not happy with the service provided.
What areas are your strongest suits? Allow your financial planner the chance to provide you an account of their strengths and weaknesses.
Read more about this on the Property Observer website.