While some consultants do not care about the interests of their clients, especially since they receive a commission for financial advice in any case, there are advisors who sincerely advise their clients, and strive to provide their services in accordance with what is dictated to them by duty and honesty.
Here are 3 questions that you have to ask and verify their answers regarding financial advice, to protect your investment from misjudgment and unwise decisions:
1-How is he worth his reward? The consultant must clarify in writing all fees and commissions and all their sources. Does he get paid for managing money separately? Do the mutual funds that he recommends include the fees that he will receive?
Part of the problem that you encounter with the counselor is that he may not explain to you how to make money for him, because he hides it in his services. So let him explain this aspect to you, and reveal it clearly in front of you.
2-Do counselors’ advice contradict each other? They have to provide a “reasonable basis” for the advice they give to their clients. If your advisor recommends investment funds or annual salaries, for example, you need to know if he gets a commission or other fees through that or not.
You should also ask him if he will receive gifts or other incentives to recommend a particular investment. Always know that what is recommended should be in your interest, not his.
3-Which of them is eligible to meet your needs? Financial advisors are known to work as brokers first before they are second. What you need to know before going to them is how well they can advise you in a way that suits your financial condition.
If you are looking for a comprehensive plan, this means that you likely need a certified financial advisor. If you need advice on a tax related matter, find an expert tax advisor or it may be sufficient to find a highly qualified public accountant.
But what about real estate, retirement or insurance plans? Again, you need to know if your advisor is able to advise you in such complex areas.
What you need to do in all cases is to search for financial advisors, planners, analysts, chartered accountants or investment consultants, who are honest and loyal. And avoid those who are just brokers or wealth managers only.