Pointers to follow before meeting a financial adviser

As an individual, you must have come across many intermediaries, who provide you different kind of services that may be legal, financial, insurance, investments, etc. However, it has been observed that very rarely, people prepare themselves for such meetings. The result of which is a lot of confusion post opting for the service. It is sometimes we, ourselves, responsible for the bad service experience. Hence, to avoid this, you should have your own checklist in place, which we will discuss further in this article.

Do your own research

It is important not to waste yours’ as well as the financial adviser’s time on discussing their credentials and qualifications. Do your own research way before the meeting or prior approaching them so that, your focus would be only on the things you can’t find online like their approach, knowledge and understanding, comfort level, etc.

Know yourself

Though at the very first meeting, you won’t be diving deep into your finances but you should have a basic understanding of your financial situation, which include how much money you have and where it is invested. It can be just a fair idea of your income, expenses and what are your financial goals like retirement or child’s education, etc. so that, you can have an informed conversation with your adviser.

Ask questions

Don’t worry or hesitate in asking questions. In fact, before the scheduled meeting, you can prepare a questionnaire and can also ask additional questions based on the discussion. However, some of your questions must include:

a) How you are paid? - Fee-only, fee-based, commission-based or the combination of fees and also, whether the fees is flat or as a percentage.

b) How often do they meet their clients? – Quarterly, semi-annually or annually. This can allow you to match those with your expectations.

c) What services do they provide? - Whether they provide comprehensive, which usually includes, risk management and insurance planning, retirement planning, tax planning, investment planning and estate planning.

d) What type of client do they work with? - Do they specialise for retirees or businessman or professionals like doctors, architects, etc.

Have realistic expectations

It is important for you to have realistic expectations from the financial adviser. People usually choose their advisers based on fees or commissions that they earn, which is not the right way. Choose your financial adviser based on his knowledge and expertise and not on how much less they are charging. Less fees or free service doesn’t mean quality service. Keep your expectations more realistic and reasonable.