In order to truly keep your finaces on track, you need to have a plan that you review regularly. There are countless reasons why your financial plans can and will change, but here are five of the most common signs it’s time to review your financial plan:
1. Do you run your own business as an entrepreneur or are you employed by a dealer, broker or bank?
Reason to ask: It is important to consider which type of advisor would have more of a vested and genuine concern for what is in your best, long term interest. Is it a job or a career for your advisor?
2. Do you invest in similar investment strategies that you recommend to your clients?
Reason to ask: This may seem simple and obvious. Should not advisors have a vested interest alongside their clients with similar goals? This may not be always the case.
3. Are you required to meet sales targets and if not met, can you be dismissed?
Reason to ask: pointed question to ask in determining whether unbiased and objective investment advice is always being offered. Is advice given, positioned to benefit your advisor for their personal gain or for meeting corporate sales mandates? Are proprietary products recommended? Is your advisor a salesperson for their firm or an independent consultant for you?
4. Did you advise clients during the tech meltdown in 2000 and the global financial crisis throughout 2008?
Reason to ask: Money is often made easily in good times, but does it not make sense to entrust your hard earned, future financial well-being with those that know how to navigate through the most volatile times?
5. Do you provide a holistic financial planning approach including behavioural guidance, tax and insurance planning and retirement and estate planning?
Reason to ask: Does it not make sense to have trusted, professional guidance in all aspects of your financial life? A holistic and comprehensive approach is needed to secure your financial future. Successful long-term planning requires professional, independent advice.
