Anxious to reorganize your financial portfolio, you are looking for safe investments to prepare for your retirement. A specialist in wealth management, a financial advisor can help you. He can also tell you about the best savings products and restructure your loans. Still, it has to be chosen wisely.
Summary
Make sure you are competent
The professional you are going to hire must master all aspects of his job. It won’t be easy to find out for yourself. On the other hand, you can check certain factual elements.
Depending on his specialty, in fact, the financial adviser must be approved by the supervisory authorities. This is the case for wealth management advisors, for example.
It is also preferable to use an insurance intermediary registered in an official register. Make sure the advisor has professional indemnity insurance, which covers you in the event of errors on their part.
Also try to find out about your adviser’s work experience. In this regard, his seniority in the profession can give you valuable indications. It is also possible to collect the opinions of its previous customers, and thus measure their degree of satisfaction.
An advisor who helps you define your project
A financial adviser who knows his job should offer you take stock of your financial situation. If he offers it to you, you know that you are dealing with a competent professional.
This financial report allows the adviser to know your financial situation well and to propose an investment strategy that suits him. It is the subject of a written document, called an engagement letter.
The advisor summarizes the financial project he is proposing to you and the means he intends to use to carry it out. This document must also indicate the terms of the collaboration between the adviser and his client.
All financial information given to the advisor is protected by the confidentiality to which these professions are bound.
A fair remuneration
The choice of your financial advisor also depends on what his services will cost you. Depending on his status, this adviser asks you for fees or charges commissions. Sometimes it can be both.
The advisor will ask you for a fee to analyze your financial situation. When he negotiates an investment with various organizations, he receives commissions, from the client and from the supplier, at the time of the subscription of the contract.
The advisor also receives commissions on the management fees for your investment products. He can also get some on exit fees.
In this regard, your advisor must give you all the necessary details. Very low fees, which assume very succinct services, or excessive remuneration, should arouse some suspicion on your part.
A clear and available advisor
Unless you are an expert yourself, the intricacies of the financial markets and the complexities of different investments are not always easy to disentangle.
You must therefore choose a financial adviser who explains them clearly to you. He must expose his heritage strategy to you with a constant concern for pedagogy. A better understanding of the project proposed by your adviser will allow you to grasp its philosophy and measure the possible risks.
Informed in this way, you will be able to give your consent in full knowledge of the facts and participate actively in the implementation of the strategy decided by mutual agreement.
You should also expect your adviser to listen attentively and be genuinely available. It is such provisions that will allow you to benefit from quality support.
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