Building a Partnership: How to Choose Your Financial Planner
By Hardi Swart CFP®, Managing Director, Family Wealth Custodians
My journey into financial advising began with a personal lesson. After my father's death, brokers misled my family, investing nearly all our money in risky property syndicates that failed. This taught me the importance of ethical and sound financial advice. Since earning my Certified Financial Planner (CFP®) designation in 2011, I’ve committed to prioritizing my clients’ well-being over mere financial management. Our clients are more than just clients—they're family.
My approach is rooted in trust and integrity. As a financial planning partner, I am to provide comprehensive, independent advice tailored to each client's unique needs. Your money should be working smarter, not harder. Trust and personal responsibility are the cornerstones of a client-adviser partnership.
Choosing the right financial planner is a crucial step in your journey to achieving financial stability and growth. Here are a few key points to consider when selecting a financial planning partner:
Professional Designation
Ensure your adviser holds a Certified Financial Planner (CFP®) designation, signifying they have met rigorous education, experience, and ethics standards. The Financial Planning Institute of Southern Africa (FPI) can help you verify their status.
Transparent Pricing
Look for advisers who are transparent about their fees. Typically, advisory fees range from 0.25% to 1% of assets under management. Be wary of excessive upfront fees and inquire about additional investment management fees.
Service Structure
Determine who handles investment management—whether it's in-house or outsourced. Verify their track record and expertise. Check if the adviser collaborates with other specialists, such as tax practitioners and estate planners.
Service Level Agreement
Carefully review the service level agreement for any potential conflicts of interest. This document should clearly outline the services provided and the adviser’s responsibilities.
Regular Reviews
Financial advisers should review your financial plan at least annually. Understand their review process to ensure it’s thorough and beneficial to your financial goals.
Experience and Track Record
An experienced adviser brings valuable insights and should have a clean track record. If dealing with a newer adviser, ensure they disclose their experience level and are under proper supervision.
Licensing and Membership
Verify that the adviser is licensed with the Financial Sector Conduct Authority and confirm their good standing with the FPI if they are members.
Trust and Communication
Finding someone you can trust is paramount. Your financial planner should clearly explain complex concepts and take a genuine interest in your family's well-being, guiding you toward sound financial decisions.
Financial Behavioral Coaching
Good advisers act as financial behavioral coaches, helping you make better financial decisions rather than just telling you what to do. They aim to strengthen your family's financial and emotional health.
The information contained herein should not be construed as advice as defined in the FAIS Act.
Hardi Swart CFP® Managing Director, Family Wealth Custodians Email: hardi@familywealth.co.za
Original article updated:
Original article by Jonathan Faurie
Publication: 12 August 2019, FA News
Article reference: (http://ow.ly/9wje50wLmLN)
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