You may already have a financial adviser, or you may be seeking a new one. But how can you tell if they are any good? Here are some of the signs:
Good advisers:
Spend plenty of time listening and learning about you, your perceptions; experiences; feelings; hopes and dreams and take a personal interest in you and your family.
Have a broad frame of reference and experience so can put themselves into your shoes.
Help you to work out and understand your true needs and goals.
Help you to set clear benchmarks and targets to measure and ensure your success.
Work with you in partnership to achieve your goals.
Help you design a robust plan for your future and review it regularly to ensure you are on track.
Provide models and forecasts of what your future will look like using various “what if” scenarios.
Explain ideas and convey information confidently and clearly, avoiding jargon and complexity.
Play “devil’s advocate” to challenge your thinking to help you assess the evidence objectively to avoid mistakes and traps.
Challenge the status quo and encourage you to explore new horizons and different options.
Provide continuing and transparent advice about your investments and general financial position.
Temper your enthusiasm during periods when investments are performing well and boost your confidence and provide reassurance when they are not.
Speak candidly about fees and the value they provide.
Explain the relationship between risk and return, encouraging you to understand and manage risk in your life.
Never predict what investments will do in the future – no-one knows!
Never promise too much or deliver too little service.
Always explain why their recommendations are suitable and relevant to the lifestyle you want.
Provide a full family service where appropriate, so that money is not lost through the generations.
Many people will like and trust their adviser which is great because an ongoing relationship is key to long term success.
Unfortunately, we don’t believe that this is enough – plenty of people have been misled in the past by dishonest or incompetent advisers (who they liked and trusted) and have not achieved their life goals as a result.
For your own peace of mind, take a little time to assess your current adviser against the list above. If they come up short, don’t hesitate to call us for a friendly chat.