Good financial advisors will encourage their clients to ask questions. An advisor would rather have a satisfied client who understands his or her financial needs than an unhappy client who is disillusioned about the service they received.
Can I see your lisence?
Financial advisors in South Africa must be lisenced to with the Financial Services Board (FSB)
Are you qualified?
Many advisors are certified financial planners (CFP), but experience can also be a form of qualification. Any advisor representing Liberty, for instance, will meet the requirements set out by the Financial Advisory and Intermediary Services Act (FAIS).
Do you have references?
A referral from a satisfied client is one way to select a good advisor. However, find out first why the client is satisfied. Is it because the advisor doubled their money in a month or because they have a long term financial strategy that they are happy with? Short- term gains can be reversed, but a long- term financial plan creates long- term wealth.
Do you follow the six- step process?
Most leading financial planners follow the internationally recognised Financial Planner Institutes sis- step process for identifying a client's current financial knowledge and experience, and current financial situation. The gap between the current situation and desired outcome helps to create the financial plan.
How often will I meet you?
Financial reviews are critical to any successful plan and one should meet with an adviser at least once a year. At this time changes to personal circumstances can be discussed as well as taking stock of whether or not you are on track with your plan.
Do you have someone who can step into your shoes?
It is preferable to deal with a financial adviser that is part of a company so if something does happen to the adviser there is someone else who can take over the relationship.
Which companies do you deal with?
Make sure your adviser has contracts with reputable service and product providers.
What do you charge and what will you provide for this fee?
It is important to understand how the adviser earns an income. Some are paid commission by the product providers they represent and others an advisory fee from their clients. You need to understand what services this include and whether you feel that you are getting value for money. Clients can stop their ongoing advisory fee on investment products if they feel their advisor is not providing a service. Changes to legislation also allow clients to now redirect and ongoing commission on their investments products to a new advisor if they change advisers.
What are the costs of this product and what is your commission?
Costs matter, especially on investment products where they can affect total returns.A good advisor will offer you various choices where you can decide on the relative costs and benefits of the products on offer.
Why is the product right for me?
The product must meet your needs, not that of the adviser, so make sure that you understand the product benefits, terms and any restrictions on claims or withdrawals.
(Article by Liberty)
Thursday, October 21, 2010
Wednesday, October 20, 2010
The value of advice
How a financial advisor can help you achieve your goals.
A financial advisor is your financial coach. He or she is there to guide and to encourage you, but ultimately your financial fitness will depend on how much you buy into that partnership and how committed you are to your financial goals.
We all know we should exercise regurlarly and that it will keep our weight down and make us healthier- so why don't we?
It is usually because we lack discipline- it is easier to sit on a couch and just relax after a tough day in the office.
Now if we had a personal trainer arrive on our soorstep every day, we would probably find it that much easier to stick to an exercise programme.
A trainer would also be able to develop a personalised programme that suited our goals; to build muscle, we would have a more intensive weight- bearing programme; to lose weight, we would need morecardiovascular training. If we had weak areas, the trainer would recommend some exercises and avoid others so that we did not develop injuries.
A personal trainer for your financial well- being
A financial advisor is effectively a personal trainer for your financial well- being. We know we need to have a financial plan that includes paying off our debt, saving, investing and risk cover, but when are we ever going to get around to creating and implementing the plan?
A financial advisor can help set up a financial to meet your goals without taking risks that you can't afford, or maybe by taking more risks (training a bit harder) to reach those goals.
If you are tempted to dip into your savings to buy a new car, your financial advisor is there to remind you of the impact of impulsive purchases on your long- term goals. And when the markets move up or down, your financial advisor will remind you of why you made your investment decisions, so that you stay focussed on your long- term plan rather getting caught up in the emotions of newspaper headlines.
The real cost of DIY financial planning
Nowadays there are many options for DIY finances, and it can often cut fees, but at what cost?
For example, if you experienced a trauma and needed to claim on your disability cover, would you really want to try and claim through a website from your hospital bed? Or if you die, do you want your family to be worrying about getting your finances in order?
A good financial advisor will step in and deal with the paperwork- this os what they are trained to do.
Call your financial advisor today and get financially fit!!!!
A financial advisor is your financial coach. He or she is there to guide and to encourage you, but ultimately your financial fitness will depend on how much you buy into that partnership and how committed you are to your financial goals.
We all know we should exercise regurlarly and that it will keep our weight down and make us healthier- so why don't we?
It is usually because we lack discipline- it is easier to sit on a couch and just relax after a tough day in the office.
Now if we had a personal trainer arrive on our soorstep every day, we would probably find it that much easier to stick to an exercise programme.
A trainer would also be able to develop a personalised programme that suited our goals; to build muscle, we would have a more intensive weight- bearing programme; to lose weight, we would need morecardiovascular training. If we had weak areas, the trainer would recommend some exercises and avoid others so that we did not develop injuries.
A personal trainer for your financial well- being
A financial advisor is effectively a personal trainer for your financial well- being. We know we need to have a financial plan that includes paying off our debt, saving, investing and risk cover, but when are we ever going to get around to creating and implementing the plan?
A financial advisor can help set up a financial to meet your goals without taking risks that you can't afford, or maybe by taking more risks (training a bit harder) to reach those goals.
If you are tempted to dip into your savings to buy a new car, your financial advisor is there to remind you of the impact of impulsive purchases on your long- term goals. And when the markets move up or down, your financial advisor will remind you of why you made your investment decisions, so that you stay focussed on your long- term plan rather getting caught up in the emotions of newspaper headlines.
The real cost of DIY financial planning
Nowadays there are many options for DIY finances, and it can often cut fees, but at what cost?
For example, if you experienced a trauma and needed to claim on your disability cover, would you really want to try and claim through a website from your hospital bed? Or if you die, do you want your family to be worrying about getting your finances in order?
A good financial advisor will step in and deal with the paperwork- this os what they are trained to do.
Call your financial advisor today and get financially fit!!!!
Tuesday, October 19, 2010
Fisa calls for strict measures
Good day all,
This article will give you another good reason why you do not want to die without a last will! And yet so clients do not have one.
2010-10-11 19:36
Pretoria - The Fiduciary Institute of SA (Fisa) on Monday called for the Guardian's Fund, which has lost an estimated R80m to fraud and theft, to be placed under the management of a regulated financial institution.
In a statement Fisa chairperson John Gibson said such an institution, be it a bank or a trust, should have the necessary controls in place to administer the fund.
Fisa's call followed the announcement on Sunday by Justice Minister Jeff Radebe that since February 2010 there had been an investigation into allegations that corrupt officials in collusion with syndicates had defrauded the Guardian's Fund of about R80m.
The investigation involved the Hawks, the Special Investigating Unit and the National Prosecuting Authority.
The Guardian's Fund falls under the administration of the Master of the High Court and was created to hold and administer funds paid to the Master on behalf of various people such as minors, people who are incapable of managing their own affairs, unborn heirs and missing or absent people.
Radebe said corrupt officials gave out particulars of the legitimate beneficiaries and that syndicates then made use of fraudulently obtained identity documents to open up bank accounts and claim benefits in collusion with corrupt officials.
One syndicate member had claimed 15 times for the same beneficiary.
Gibson said an institution tasked with managing the fund should have a "national footprint" because the "scattered" administration and the "decrepit administration controls" of the fund left it open to abuse.
It was estimated that in 2007 the Guardian's Fund had about R2bn that was invested with the Public Investment Commission and audited annually.
- SAPA
This article will give you another good reason why you do not want to die without a last will! And yet so clients do not have one.
2010-10-11 19:36
Pretoria - The Fiduciary Institute of SA (Fisa) on Monday called for the Guardian's Fund, which has lost an estimated R80m to fraud and theft, to be placed under the management of a regulated financial institution.
In a statement Fisa chairperson John Gibson said such an institution, be it a bank or a trust, should have the necessary controls in place to administer the fund.
Fisa's call followed the announcement on Sunday by Justice Minister Jeff Radebe that since February 2010 there had been an investigation into allegations that corrupt officials in collusion with syndicates had defrauded the Guardian's Fund of about R80m.
The investigation involved the Hawks, the Special Investigating Unit and the National Prosecuting Authority.
The Guardian's Fund falls under the administration of the Master of the High Court and was created to hold and administer funds paid to the Master on behalf of various people such as minors, people who are incapable of managing their own affairs, unborn heirs and missing or absent people.
Radebe said corrupt officials gave out particulars of the legitimate beneficiaries and that syndicates then made use of fraudulently obtained identity documents to open up bank accounts and claim benefits in collusion with corrupt officials.
One syndicate member had claimed 15 times for the same beneficiary.
Gibson said an institution tasked with managing the fund should have a "national footprint" because the "scattered" administration and the "decrepit administration controls" of the fund left it open to abuse.
It was estimated that in 2007 the Guardian's Fund had about R2bn that was invested with the Public Investment Commission and audited annually.
- SAPA
Thursday, October 7, 2010
Clarity on PMB's
Carte Blanche on MNET had a slot last Sunday on Prescribed Minimum Benefits which might have caused some confusion.
Just to get more clarity on the PMBs as introduced into the Medical Schemes Act
· PMB’s was introduced into the Medical Schemes Act to ensure that members of medical schemes would not run out of benefits for certain conditions and find themselves forced to go to state hospitals for treatment.
· These PMBs cover a wide range of close to 300 conditions, such as meningitis, various cancers, menopausal management, cardiac treatment and many others including medical emergencies.
· Terminology
In order to understand the impact of the legislation changes, a clear understanding of the terminology is required:
Designated service provider (DSP)
This refers to health care provider/s that have been "selected by the scheme to provide its members diagnosis, treatment and care in respect of one or more of the PMB conditions".
Emergency medical condition
This is a medical condition which is of sudden and unexpected onset that requires immediate medical or surgical treatment. Failure to provide this treatment would result in impairment of bodily functions, serious dysfunction of a bodily organ or part, or would place the person's life in serious jeopardy.
Prescribed Minimum Benefits (PMB's)
PMB's are minimum benefits which by law must be provided to all medical scheme members and include the provision of diagnosis, treatment and care costs for:
· any emergency medical condition
· a range of conditions as specified in Annexure A of the Regulations to the Medical Schemes Act (No 131 of 1998), subject to limitations specified in Annexure A. Included in this list of conditions is the list of chronic conditions
So this means that a long list of conditions identified as Prescribed Minimum Benefits was issued. The list is in the form of Diagnosis and Treatment Pairs (DTPs). A DTP links a specific diagnosis to a treatment and therefore broadly indicates how each of the approximately 270 PMB conditions should be treated. The treatment and care of PMB conditions should be based on healthcare that has proven to work best, taking affordability into consideration. Should there be a disagreement about the treatment of a specific case, the standards (also called practice and protocols) in force in the public sector will be applied.
The treatment and care of some of the conditions included in the DTP may include chronic medicine, e.g. HIV-infection and menopausal management. In these cases, the public sector protocols will also apply to the chronic medication.
Just to get more clarity on the PMBs as introduced into the Medical Schemes Act
· PMB’s was introduced into the Medical Schemes Act to ensure that members of medical schemes would not run out of benefits for certain conditions and find themselves forced to go to state hospitals for treatment.
· These PMBs cover a wide range of close to 300 conditions, such as meningitis, various cancers, menopausal management, cardiac treatment and many others including medical emergencies.
· Terminology
In order to understand the impact of the legislation changes, a clear understanding of the terminology is required:
Designated service provider (DSP)
This refers to health care provider/s that have been "selected by the scheme to provide its members diagnosis, treatment and care in respect of one or more of the PMB conditions".
Emergency medical condition
This is a medical condition which is of sudden and unexpected onset that requires immediate medical or surgical treatment. Failure to provide this treatment would result in impairment of bodily functions, serious dysfunction of a bodily organ or part, or would place the person's life in serious jeopardy.
Prescribed Minimum Benefits (PMB's)
PMB's are minimum benefits which by law must be provided to all medical scheme members and include the provision of diagnosis, treatment and care costs for:
· any emergency medical condition
· a range of conditions as specified in Annexure A of the Regulations to the Medical Schemes Act (No 131 of 1998), subject to limitations specified in Annexure A. Included in this list of conditions is the list of chronic conditions
So this means that a long list of conditions identified as Prescribed Minimum Benefits was issued. The list is in the form of Diagnosis and Treatment Pairs (DTPs). A DTP links a specific diagnosis to a treatment and therefore broadly indicates how each of the approximately 270 PMB conditions should be treated. The treatment and care of PMB conditions should be based on healthcare that has proven to work best, taking affordability into consideration. Should there be a disagreement about the treatment of a specific case, the standards (also called practice and protocols) in force in the public sector will be applied.
The treatment and care of some of the conditions included in the DTP may include chronic medicine, e.g. HIV-infection and menopausal management. In these cases, the public sector protocols will also apply to the chronic medication.
Subscribe to:
Posts (Atom)