experience is, the greater the need for trust. In gaining your trust, your adviser should make you feel that your financial needs are viewed within the context of your life as a whole and that the advice process seeks to serve your best interest.
Your adviser’ s knowledge, experience and qualifications are important elements of the trust equation, as your financial needs and objectives to be solved are unique. This requires your adviser to apply their mind in a complex and ever-changing world of investment markets, economies, regulation, sociopolitical developments and science. Your adviser should be able to guide you through the maze of available product options and potential pitfalls and develop a simple, yet effective, financial strategy that speaks to your personal values and long-term objectives.
From a relationship perspective, your adviser should be approachable and accessible at all times and completely transparent in all matters. You should feel comfortable asking for references, confirmation of your adviser’ s professional status and how their advice fee model works.
Your preferences regarding the method and frequency of communication ought to be acknowledged as well. This will further contribute to the health of your professional relationship, the quality of the advice you receive and the speed with which the advice is implemented. Ongoing feedback and formal in-person reviews by your adviser will ensure that any unnecessary surprises are avoided and the level of trust maintained.
Beyond the trust relationship with your adviser, you should also be able to trust the financial institution or product and service provider that they represent or recommend as part of your financial solution. An established brand goes a long way to provide comfort that your financial matters are handled by legitimate service providers with an established track record.
When it comes to the value you receive, it is important to understand how your adviser is remunerated and if any incentives exist that could dilute the quality of the advice received. From a risk management perspective, one should be willing to pay good money for good advice that will avoid exposure at a critical time in one’ s life.
It is important to recognise the part you play in establishing a mutually beneficial relationship with your adviser when it comes to seeking a sound financial planning experience. Your adviser has the obligation to assist you in meeting your personal financial needs and objectives based on the mandate, information and fee you give them. But you are ultimately responsible for your financial destiny.
Enhancing your financial knowledge and being deliberate about your financial decisions can significantly benefit your financial journey. By asking insightful questions, you can receive more precise advice from your adviser, ultimately increasing your chances of achieving your financial goals.
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* Disclaimer: Kindly note that this does not constitute financial advice the information provided is purely informational. The information, opinions and communication from the PPS Group or any of its subsidiaries, whether written, oral or implied, are expressed in good faith and not intended as financial or investment advice, nor do they constitute an offer or solicitation in any manner.
Johan Gouws
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