Having your finances properly organised is a very satisfying feeling. Several studies concur that persons generally feel more confident and secure when they know they’re on track to achieve their financial goals. It’s therefore no surprise that those with professional financial guidance are much more pleased.
With quite a few financial advisors and options available, how does one properly choose the right expert to work with in achieving their financial goals? Here are a few considerations to bear in mind:
- Determine if you need a financial advisor
If you are an individual trying to map out your financial future, then a financial professional may be a good option. Let’s be clear: you don’t need to hire one to be successful with your savings and investment goals. For example, if you are an employee and you participate in your company’s pension scheme, that plan is generally managed by licenced financial brokers. This way, your savings will indeed be managed by a professional.
However, for the individual who in fact wants help mapping out their financial future or has a more complex financial situation, such as stock options or perhaps to assist with family financial obligations, you may benefit from a face-to-face conversation with a human financial advisor or planner.
Advisors generally go beyond just building portfolios; they offer a wide range of services to help achieve your goals, such as help in creating a budget and plan to save for a home, selecting the correct university savings plan for your family, or even creating tax efficiencies with your investments.
- Consider the type of professional you would like to work with
Two financial professionals generally considered are a broker and an investment advisor. Brokers are registered with the Financial Services Commission of Jamaica (FSC) and overseen by the Bank of Jamaica and other regulatory agencies for the financial industry. Brokers are allowed to buy and sell stocks, bonds, mutual funds, annuities, and other investment products on behalf of their clients. These professionals must act in your best interest when working with your money.
Similarly, investment advisors are accountable to said oversight bodies. They can manage investment portfolios — including buying and selling stocks and funds — and provide advice on your investments. These professionals need to act as a fiduciary, which means they must put your interests ahead of their own.
- Research the names of Institutions with individual financial advisors
When hiring a financial professional, make sure you do some research before hiring anyone to manage your money. You can talk with your family and friends to get a few recommendations of persons. It is said that one in four persons gets financial advice from their parents and friends, so a precedent is set. Or simply stroll into any financial institution based on an online review of the major financial companies in Jamaica and make an appointment.
- Make an introductory call or face-to-face meeting
Notwithstanding doing your homework online and talking with family and friends, it’s also helpful to meet the advisors in person before you engage their service. This is someone you’re going to take financial advice from and potentially work with for years to come, so it’s important that you understand how they conduct business and make sure you click with their approach.
Additionally, it would be good to ask them about their educational qualifications and experience, and you may want to ask about all the services they provide and what types of clients they typically work with. For example, if the advisor usually works with high-net worth professionals and you’re barely making ends meet, their specialised advice may not be as helpful for you.
At the end of the day, you need to feel comfortable with your advisor, so take the time to thoroughly research. Above all, be prayerful and seek discernment from our Lord and Saviour, Jesus Christ of Nazareth, in identifying the right professional.