Financial advisers

[thomsk]

I'm wondering can anyone give advice as to how to choose a decent financial adviser, and what sort of charges to expect. I have known people who have employed them before- and have actually regretted it, stating they could have done better without one.

I see many threads with people advising "go and get professional advice,etc" - but how do you know that you can trust someone you've never met before with your money????

 

[yob]

i totally agree with you thomsk,none have made me money to date as to what i've made myself.after all no one will look after your money like you will,i love these fund managers who get paid win loose or draw.

 

[LexLuthor]

I've often wondered about this question too. I guess the amount of benefit you will get depends on how much you know already -
i.e.: obviously someone who has never managed their money before will benefit more from professional advice than, say, a regular AAM reader.

 

[ft5j60j]

I have the same worry, even tough they are meant to be independant they also give reward from the company you sign for,

I personal think they dont have you best interests in mind?

 

[dunkamania]

Make sure you get an independent adviser,that charges you a fee,as opposed to a free adviser attached to a financial institution.

Walk out on anybody that tries to persuade you to purchase a product based on the last few years performance.

It is not rude to ask the adviser about compensation agreements they have,with the managers of the products they are offering.

 

[thomsk]

I reckon that if an advisor is sure that an investment will do well, they should have at least the same amount of money invested in the project themselves (and are in it for the same term).
I think they should be willing to prove what sort of profits they have made also, as a confidence booster to the investor !
If they have none of the above - why not??

 

[bacchus]

I reckon that if an advisor is sure that an investment will do well, they should have at least the same amount of money invested in the project themselves (and are in it for the same term).

then they have a vested interest in the product they are trying to sell you...which would make me wonder the true reason as to why they recommend this product to me (e.g damage control / too good to be true?)

 

[chlc]

I recently got in touch with a financial adviser friend of one of my family and had done well for them, I knew the product I wanted after researching AAM and the financial institution itself, I wanted to put a lump sum and a regular monthly contribution in, i was advised I would have to open 2 seperate policies one for the lump sum and one for the regular monthly payment fund, I then phoned the institution and they said no I could put both into the one fund, I called him on it and he was surprised you could do this, needless to say I did no business with him. I wonder was he trying to get 2 commisions from me.Make sure you have your own research done.

 

[dunkamania]

I reckon that if an advisor is sure that an investment will do well, they should have at least the same amount of money invested in the project themselves (and are in it for the same term).
I think they should be willing to prove what sort of profits they have made also, as a confidence booster to the investor !
If they have none of the above - why not??

Financial advisers shouldnt be expected to know or have an informed opinion about how a investment will perform. They should be able to select suitable products given the clients circumstance. Therefore an adviser may recomend a product to a client that would be unsuitable for the adviser. e.g a 55 year old adviser recommending an aggressive equity product to a 30 year old.

 

[niallliam]

I recently got in touch with a financial adviser friend of one of my family and had done well for them, I knew the product I wanted after researching AAM and the financial institution itself, I wanted to put a lump sum and a regular monthly contribution in, i was advised I would have to open 2 seperate policies one for the lump sum and one for the regular monthly payment fund, I then phoned the institution and they said no I could put both into the one fund, I called him on it and he was surprised you could do this, needless to say I did no business with him. I wonder was he trying to get 2 commisions from me.Make sure you have your own research done.

The reason you were probably offered two products is because there was probably no entry charge on the lump sum invest (though early exit charges probably applied) and possibly the funds for the lump sum may have been more diverse and also it is easier to see what return you are getting on each product separately. Yet again there is a cynicism with regard to commission. Financial advisors are not all good just like any other profession. However, it is clear you required the services of one and therefore do not know as much as you think. You must therefore pay for a service. If you have doubts about the quality of your advice just ask the advisor to explain. If he seems to have a poor explanation seek alternative advice. If not say thank you!