With the new year starting, many have taken the right resolve to put their personal finances in order. Wise decision. But before going any further, ask yourself the following question: are you a good support? Is the adviser or planner in charge of your assets sufficiently competent? Does he have time to devote himself and finally the question that kills: Does he defend your interests BEFORE his family or those of the bank or fund that hires him?
Here are 7 situations that will help you understand that it may be time to turn to someone else.
When it does not want to reveal your average returns in recent years and compare them to the industry average, do something! This crucial piece of information is ultimately his report card. You are not in front of an individual or a professional organization if you avoid showing your figures!
When he insists on always selling you the products of the same financial institution. Keep in mind that it’s not nananes, trinkets and random rebates that will fund your retirement, but real NET results in your RRSPs and TFSAs.
What you do not have a financial plan yet? Recently, a couple in their fifties told me that after 10 years of promises, their advisor from a respectable insurance company in Quebec City had not taken the time to prepare proper retirement plans for them. Innaceptable!
If your advisor offers ONLY non-redeemable investment certificates (GICs), he does not work for you. It is very easy to find products offering the same RETURNABLE at any time WITHOUT penalty. Also, if you put your RRSPs and TFSAs on the back of a return-on-the-money GIC, it is obvious that your interests are after the institution’s.
Obligation to sell
If your advisor has an obligation to sell a minimum of home products from his institution or worse, if he has a minimum volume of annual sales to make, he is subject to quotas. Sooner or later, it’s the customers who end up paying for it. I still can not understand that this is still allowed in Canada in 2015. To make sure, you can call and ask your advisor or better his boss. I am of the opinion that if a consultant or planner has an obligation to SELL, he should not be called advisor, but only “sales representative”. At least it will be clear.
During an interview, when you do not catch a word of what he says, there is a problem. A financial professional must have communication skills. It is the end of the time when to “enfirouaper” the world we had only to fall asleep with learned words and financial jargon. An effective counselor is one who succeeds in being understood and above all, who listens and understands your concerns.
Finally, turn me away from anyone who never gives you news or does not return your calls. It simply does not deserve to manage your earned hold with the sweat of your forehead.