IF you want results from your gym, a good instructor will help you achieve them.
And that also applies to your finances.
But to some, like Bongani Ndlovu from Mofolo South, in Soweto, this seems like a tough ask. “I wish I had someone that I can go to for financial guidance, but how do I know I can trust them with my money?”
Alexander Forbes Retail executive and certified financial planner, Graeme Tarr, gave SunMoney some tips.
Are they properly qualified?
Financial advisers must be licensed by the Financial Advisory and Intermediary Services Act. This imposes the highest ethical standards on advisers.
They must be registered with the Financial Planning Institute of SA, have the right experience and qualifications, have passed the Financial Services Board’s regulatory exams and obey the professional development rules.
Are they independent?
By being independent, a financial adviser is able to represent your interests and not who pays them.
Your adviser has to disclose all fees and commissions earned for their services – risk, investment, retirement and estate planning. If an adviser cannot explain or disclose who pays them, walk away.
Ask for referrals
Get recommendations from people whose financial needs and lifestyle are similar to yours.
You must feel comfortable
Your adviser should be working for you and with you. You need to feel comfortable. But remember the golden rule – if it sounds too good to be true, it probably is.
What protection do you have?
Who do you speak to if something goes wrong? Does your adviser or firm they represent carry sufficient insurance or professional indemnity cover?
