Personal finance has become extremely complex. Legislation and the products themselves have left the world bewildered due to the fact that the financial environment changes on a daily basis. Not even the most financial literate have the time or the expertise to keep up with developments.
10 Potential mistakes in choosing a financial advisor
- Choosing the advisor due to distance. Find an advisor that applies to your needs, not someone that is necessarily close to you.
- Going with your bank advisor- There are excellent bank brokers out there, but it might be good to get a second opinion.
- Choosing the first advisor that you get a proposal from. This is one of the biggest mistakes to make. A financial advisor is a specialist in the field and therefore it is better to get more than one opinion from more than one broker.
- Sticking with you advisor even though you are unhappy with the service provided. If you have informed the advisor that you are not happy with the service provided and nothing has changed, you are more than welcome to find someone better suited.
- Staying with an advisor because he/ she makes you feel guilty- this is a domino effect caused by several of the mistakes listed here. Keep things professional.
- Choosing the cheapest advisor- Always focus on quality and not quantity.
- Choosing an advisor that wines and dines you- This is a benefit some companies do on a standard basis, but it is important to get good service and not just good food.
- A personal friend- One should rather not interfere business with you personal life.
- Going with an advisor because it is a friend of someone you trust
- Basing your decision on their vehicle