Successful adviser-investor partnerships that are less transactional and more relational stand the greatest chance of a positive outcome, according to Neal Sinclair, a business development manager at Glacier by Sanlam.
Sinclair said: “Once you have established trust, you learn that your adviser is your partner to get you to your financial goals. Often they become your business coach, your friend and your confidant.”
Soft skills are a common thread among the most successful financial advisers. The best way that your adviser can put these skills to use and help you to manage your money optimally is through regular financial reviews.
To get the most out of your meetings with your adviser take the following list of talking points and questions with you:
A will
It is vital that your will and estate plan are updated based on any life changes that may have occurred since the last time you met with your financial adviser. Keep in mind that these changes could impact your risk cover, so it is important that you give your adviser all of the necessary information.
Sinclair said, “You could’ve changed employers and updated the beneficiary nominations (or not nominated beneficiaries) on your retirement annuity or preservation fund. You need to review those new nominations to make sure that all the right intentions, in the event of something unfortunate happening, are conveyed.”
My financial plan is as tax-efficient as possible
“Ask your financial adviser whether your existing plan is as tax-efficient as it can possibly be when looking at the structures that your capital or income is stored in or transferred through,” Sinclair said.
You may have offshore assets or consider investing in them, but these come with their own set of tax implications.
Not every financial adviser will have all the answers when it comes to niche knowledge instead they should have a network of contacts that can help you answer any question they can’t.
My portfolio reflects my risk appetite
Your appetite for risk can change and if it does, your portfolio needs to change too.
Sinclair said, “If you’ve fallen out of your appetite for risk, it’s important to discuss this with your financial adviser so you can manage this appropriately. It’s also smart to review your existing investment portfolio in the context of the past year.”
He suggests asking your financial adviser this question:
Have we rebalanced my portfolio within the year, with financial markets running hard or falling fast?
“If market performance has been low of late and has you worried about reaching the goals you’ve set for yourself, share this with your adviser so you can make the necessary tweaks to keep you on track,” Sinclair said.
Investment opportunities
Which tools does your adviser use to ensure you have access to the widest range of investment opportunities without excess cost?
How can they help you build as diverse a portfolio as possible?
To a large degree this influences the value your financial adviser can bring to your financial planning.
“Financial planning has evolved; it used to involve picking the solution to suit the investor. Now, the investor shares that they need a certain outcome, and advisers need to take all the solutions that are available to them and blend them together to get the outcome.”
Peace of mind
With information hitting our news feeds fast, an investor needs to be even more cautious about how they apply that information when making financial decisions.
A financial adviser can be your partner in cutting through all of that noise.
“As an investor, if you are doing your own research and come across a story or opinion that alarms you, or you’re unclear about a concept, print the article, take it with you to your meeting and share that it’s got you thinking. Ask your adviser to explain it to you,” Sinclair said.
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