Your relationship with your financial adviser is one of the most important you'll ever have (sorry, bae). Build it on a foundation of trust and honesty.
1. Be honest about your financial situation - even if it's embarrassing.
2. Share your hopes and dreams with your adviser.
3. Identify your financial needs by looking at the areas of your finances that are in good shape and those that need work.
4. Create your financial plan - now that your financial adviser gets you, he or she creates a tailor-made financial plan.
5. You've had 'the talk', now put that plan into action.
6. Keep your financial adviser up-to-date with your changing goals to evolve your plan.
Find someone who gets you. A good financial adviser is a professional who considers all your financial needs and goals, and has the knowledge, experience and support to give you Advice That Matters™.
More factors to consider before choosing your money mentor:
- Qualifications: do they have the credentials and products you deserve?
- Referrals: do they come highly recommended by people you trust?
- Support: do they have access to specialist service to support you?
- Advice, analysis and products: do they review with you regularly?
Don't accept any old advice. The Financial Advisory and Intermediary Services Act (FAIS) aims to protect customers from dodgy advice, products and services. It outlines characteristics of good advice:
Make sure your adviser:
- Conducts a needs analysis which takes into account your age, income, dependents and goals
- Clarifies the services he or she can provide as well as their relationship with Old Mutual
- Gives you enough information to make informed decisions
- Is clear about commission and admin charges upfront
- Helps you understand all the terms and conditions of your investment
- Provides you with all documentation within 30 days
Why create a financial plan with Old MutualWhen it comes to your money, we can handle it.
When you first meet with your financial adviser, they will ask questions to get to know you. They want to know your age and income; the stuff you own and the dreams you have. They will ask about your family and dependents. And they will also ask some questions about your attitude towards money and taking chances with it.
A financial needs analysis or assessment is conducted by your financial adviser after chatting to you. It gives a view of your current financial situation as well as your future needs and goals.
Your risk appetite describes your attitude towards your money and taking chances with it. That is, whether you’re prepared to risk a big loss for a possible big return on your investment, or would prefer not to take a big risk but be sure of a modest return. In terms of money, risk is categorised into low, medium and high risk.