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Important Questions to Ask Your Financial Advisor

In the first article of this series, we spoke about when is the right time to speak to a financial advisor. In the second part we explained the difference between an independent financial advisor and a broker so that you know how to choose the right advisor for your portfolio.

This is the fourth and final part of our financial advisor series and in this article, we will discuss important questions to ask your financial advisor.

personal financial planning services

Questions to Ask Your Financial Advisor

So, you have decided to speak to a financial advisor about your personal financial planning but you’re not sure what kind of questions you need to ask to make sure the person or company you have chosen is the right fit for you.

It may seem irrelevant, but asking the right questions is extremely important as it will help you establish a good foundation to build this relationship on. The relationship between you and your financial advisor should be one of compatibility and most of all trust.

Here are 5 of the most important questions to ask your financial advisor:

How do You Charge for Your Services?

Generally speaking, there are two ways that financial advisors can charge their clients for financial planning services, and these include:

  • Up-front fees – These fees are charged on an hourly basis for the time spent with your financial advisor discussing your portfolio
  • Commission-based fees – These fees are charged based on a percentage of your total investment in a particular product/savings vehicle

When asking this question, it’s also important to establish what the hourly rate or percentage of commission will be.

How do You Determine My Individual Needs?

Be careful of financial advisors who apply the same approach to all of their clients. There is no one size fits all when it comes to financial planning and your advisor should know this.

Make sure that the advisor you choose takes their time to understand your individual circumstances, financial status, needs, and most of all your goals and aspirations.

To do this, your advisor will gain a clear picture of your disposable income, debt, how long you have to reach your goals, and if you are comfortable with high-risk high-reward investments before putting together a strategy designed for you.

It’s important to note that a good financial advisor will always keep you informed about the process as well as any important changes that take place over time.

What Services do You Offer?

It’s always a good thing if your financial advisor can offer you a range of financial services under one roof.

Financial advisors don’t only provide advice about investments and retirement but can also assist with tax planning, choosing the right medical aid, estate planning, short- and long-term insurance, and drafting of wills.

You may not need all of these right away, but it’s good to know that the person you are trusting with your personal financial planning can also assist you with other important areas of your financial life.

What Will Our Communication be Like?

Some advisors will check in with you on a regular basis to make sure you are always on the same page whereas others will only communicate with you when there are significant changes happening in your portfolio.

This mostly depends on what you expect from your advisor but it’s important to establish open lines of communication from the start so that everyone involved knows what is expected of them from communication point of view.

Olemera – Financial Advisors in Johannesburg

As independent financial advisors in Johannesburg, we offer a wide range of financial services to people across South Africa.

We always ensure that we develop and maintain a strong, trusting relationship with our clients and understanding your unique financial goals lies at the centre of what we do.

Feel free to contact us to find out more about our comprehensive financial planning services.

Comments are closed for this post, but if you have spotted an error or have additional info that you think should be in this post, feel free to contact us.

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