As South African investors have made little progress for the investors in the last few years, I am getting additional questions about fees that they are paying financial advisers and whether these fees are valid.
Interestingly, when I talk to financial advisers, they are also asking that they pay their customers the right to correct their fees, which are asking them to describe the value of them.
The main topics are: The advisers have increased their price, what is a fair way to pay them, and how do you know that you are with a good adviser?
This is always difficult writing articles because I have a few different interests in the world of money management.
First of all, I wrote a book that people would be helping their financial advisers.
I also make financial advisers financially, I am a financial plan and I spend a lot of time talking about money matters in media matters.
Here are some good questions to ask your present or potential advisor.
• What are your qualifications, and how many years have you been advised on money?
The world of financial planning has certainly become very complicated, and I do not think that it is suitable for non-stable consultants to help customers, unless they have the proper capability of the name of a stable financial plan. . You will often see this briefly as CFP®, which means that the person has written graduate level exams on financial planning, is an essential experience and is certified on ongoing education in which the certified and Has been approved.
I understand that more experienced, older advisers did not have to be named CFP®, but would expect at least 10 years of experience.
• Do you only recommend product from a company or range?
Generally, insurance agents can only sell products to their employer, but often call themselves financial advisers. Nothing is wrong with insurance agents, it is important that the products you can offer.
There is no restriction on what a free consultant can provide to you, but it is possible for anyone to be expert on all the financial products offered by all companies in South Africa.
• Will you be paid more to recommend some products on others?
This is a major problem in the industry and can lead to compromise advice.
• How do you charge for your services? Do you have different fees? Do you have the maximum amount of charge?
High quality consultants are always happy to explain how they charge and what they will do. More importantly, they are happy to offer you different types of fee models so that you can choose what work you can do for you.
In some cases, you may only need an hour advice, or if you get very complicated financially you might want a comprehensive plan.
For rich people, it is important to note that consultants limit their maximum fees. Unlimited fee is not realized.
• What is my total fee? Including advice, administrator, fund manager etc.
Some insurance companies cover you lifetime, investments and medical assistance are all difficult to know in one package, which you are paying.
I prefer simple, transparent fees, and I do not believe that single-packed products work best for most customers.
• Are there fees available?
It is difficult to understand how advisers can charge the investment fee on investment. They should charge you a fixed rand amount for the initial advice and the current fee charged for consultation. I’m afraid of advisers who want to provide you an initial percentage fee for investment.
• How much money can I lose in a large stock market accident?
Each consultant, which is related to investment, should tell you that you can lose it in bad times. It is very relevant to you than any promise of development, because investors are making worse decisions after making money instead of making money.
• Will I invest in index portfolio in my money?
Indexed investments (for example, Satrix, Vanguard, CoreShares) are generally very low compared to the general investment. Many fund managers struggle to defeat the index and charge too much, so the index should be a part of most investors’ departments.
I really want to get the best investment in both the world as well as a joint investment investment index.
• On which basis do you choose funds and funds?
Some financial advisers believe that their main advantages on their colleagues are their magic capabilities, which can choose better managers from each other. This is not sad!
It is important to understand how some and the funds are selected by your advisor, if they are not easily able to explain your method easily and wisely, then another consultant find!
• Have the advisers increased the price?
Good advisers can add great value for investors. They help you coach to make the right financial decisions in difficult times. Much is one of the world’s most prestigious index providers, and their research on investment is highly rated. Here’s a study that explains the value of good advisers
