A qualified financial adviser:
- takes the time to understand your goals and investment needs
- has the experience to help you develop a financial plan designed for your specific situation
- can help you determine the best way to allocate your assets
- can offer guidance during volatile market periods
- will recommend specific investments or investment strategies to meet your goals
- has experience in financial services, securities licenses and specialized training
- has access to specialised research on various types of securities
- spends time tracking potential investments that may fit in your financial plan
What Services to Expect from Your Financial Adviser
A financial adviser should take the time to get to know you, your financial situation, your financial goals and your risk tolerance. When searching for an adviser, you should expect to receive these services:
Personal attention – Your adviser will take the time to go through a full interview with you, asking questions to get to know your entire financial situation, your risk tolerance and your goals before setting up a customised financial plan.
Help developing an asset allocation strategy – Once you have worked with your adviser to determine your risk tolerance, he or she can help you allocate your money based on a mix of asset classes with varying degrees of risk that fit your time horizon and comfort level.
Advice on specific investments that match your goals – When you are comfortable with your financial plan and have determined an asset allocation strategy, your adviser will then make specific recommendations on the types of funds and securities that will best meet your needs. Your adviser should be able to provide research supporting his or her recommendations.
Answers to your financial questions – If the markets become volatile, your financial adviser should be available to help you understand the reasons behind the instability. If you hear of an interesting investment opportunity or a new stock offering, your adviser has the knowledge to research and investigate these opportunities and to help you decide if they fit into your overall plan.
Proactive management of your account – Your adviser can also bring investment opportunities to your attention, based on detailed knowledge of your financial plan and goals. Your adviser can help you manage your expectations by explaining the rewards and risks of any investment.
Ongoing, regular check-ups – Your adviser should call on a regular basis to see if your financial situation has changed – this should be at once a year unless agreed otherwise. Your adviser should review your account with you and make any adjustments necessary to ensure your plan continues to meet your situation and goals.
Maintaining a Strong Relationship with Your Financial Adviser
The relationship between you and your adviser is not just one party’s responsibility. It is a two-way street. Keep the lines of communication open and update your adviser when your financial needs or situation changes.
Additional things to consider
It is also imperative to deal with an Adviser that forms part of a robust infrastructure; What financial capacity does the company behind the adviser offer, under what Regulatory Body do they sit, what level of Personal Indemnity cover do they have supporting their activities – these are just a few questions you should be considering when selecting YOUR financial adviser.
Get started today. Call your financial adviser.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
So, you’re wondering – what is ‘robo-advice’? There is a growing market in the UK of online offerings where, instead of going for a consultation with a financial adviser, you use a questionnaire devised by the provider which, depending on your responses, advises you where best to put your cash. Investors are placed in a broad investment strategy that, in theory, suits their objectives and attitude to risk. These strategies largely consist of passive investments which ‘track’ an index.
Lehman Brothers filed for bankruptcy on 15 September 2008. With $639 billion in assets and $619 billion in debt. Their bankruptcy filing was the largest in history and prompted an immediate fall in the FTSE 100 of 4%. It was the beginning of a slump that by Christmas of 2008 had resulted in 23% being wiped off the value of Britain’s top 100 companies. As a stock market crash, it ranks alongside the dotcom bubble and the shock of 1987. However, while living standards have flat-lined since that date, the stock market revival has been spectacular. Many investors were, however, spooked by the financial crisis of 2008 and liquidated their investment portfolios. Unfortunately as shown below – they lost out on the bull run of the next 10 years.