Get the most out of your relationship with your financial advisor with this
The financial world and investing can be tricky, especially for those who are unfamiliar with navigating the hills and valleys of the financial market. To come out on top, you need regular catch-ups with an experienced guide to scout the terrain ahead and guide you onto the best possible path.
Regular meetings with your financial advisor are important
You never know what the markets or life might throw at you, so investing in your relationship with a trusted financial advisor is 100% worth it. Think of it as a partnership, not a transaction. You’ll soon see the benefits of putting in the time and trust to build a strong relationship with your advisor.
And if you haven’t found that partner yet, keep looking for someone you can trust to help you reach your investment and saving goals. You want someone you can build a relationship with, someone you like, and who has excellent soft skills (because we all know emotions can run high when it comes to our money!)
Like with any other successful relationship, you will drift apart if you don’t see each other. So, once you’ve found your trusted financial advisor, schedule regular meetings with them to ensure you’re both on the same page, your money is managed properly, and all your needs are covered.
Now, you might ask, “What will we talk about?”
These 5 talking points are a nice guideline on what to cover at your regular financial reviews to get the most out of your relationship with your advisor.
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Ask your advisor about your will or estate plan
Things change in our lives — often quite quickly. Asking your financial advisor if your will or estate plan is up to date since your last meeting is a critical step in protecting your financial future. Too many people have outdated or inaccurate wills because they either forget about them over time or think it’s not that important.
Regularly reviewing and updating your will alongside your financial advisor ensures you have adequate risk cover and that your wishes are aligned with your current circumstances, including your financial situation, family or personal circumstances, and estate planning goals.
Although some changes seem insignificant, they can have far-reaching effects. One such change that people often overlook is when they change employers. You and your advisor must review your retirement annuity or preservation fund beneficiary nominations to ensure all goes according to your wishes.
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Ask your advisor about getting your financial plan as tax efficient as possible
Discussing taxation with your advisor is crucial, and you must do it every year. Ask your advisor if your financial or investment plan is as tax efficient as possible, and if not, how can it be improved? Should your investment structures be changed? A reliable advisor can guide you on the best way forward.
Also, if you have offshore assets or want to invest offshore, this can have significant tax implications. This is not every financial advisor’s area of expertise. Still, a reliable advisor will have access to a network of experts and will work with you to address any tax-related concerns you may have.
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Discuss your risk appetite and if your portfolio reflects that
Your risk appetite will not necessarily stay the same over your lifetime as an investor. There will be times when your risk appetite is as big as a tidal wave, and there will be times when you retreat to the safety of the shore. If your appetite changes, your investment portfolio must also change, and your advisor should be able to help with that.
It’s also essential to review your investment portfolio in the context of market performance every year. For example, you can ask your advisor if your portfolio has been rebalanced based on the market and if any changes are needed to stay on track with your financial goals.
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Discuss the best investment opportunities for you
A good financial advisor should give you access to a broad range of investment opportunities, helping you to build a diversified portfolio. A diverse investment portfolio is essential to achieving your financial goals, and your financial advisor plays a critical role in this regard.
Flexibility in your financial planning is important, and you should ask your advisor about the best possible solution for you. As an investor, you should be able to move your investments around without paying extra to do so. Ideally, your financial advisor should be able to take all the solutions they have available to them and create a custom solution for your investment needs or goals.
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Ask your advisor about any concerns you may have and get peace of mind
In the information age, we are constantly bombarded with content. It’s non-stop input, some of which is as fake as an R5-bill. This abundance of financial content can make it difficult for investors to figure out which stories or tips are trustworthy. The good news is that you can take any concerns or unclear concepts to your financial advisor, and they should be able to help you cut through the noise and provide clarity.
Your advisor should be able to explain the context in which advice or tips apply to your specific situation or explain concepts you might not understand or need clarity on. This give-and-take also leads to honest discussions and builds trust between you and your advisor.
mCubed Group: Your trusted Independent Fund Administrator
With mCubed Group, you can rest assured that we’ll always help advise you on the best ways to grow your savings and invest in a comfortable future retirement. Members, clients, and participating employers of our retirement funds enjoy access to the best investment administration and advice, excellent service, and complete transparency for the best long-term results. Our fund-appointed FAIS-accredited financial advisors also help you to enjoy a safe, financially sound, stress-free, and prosperous retirement. Get in touch today to speak to a financial advisor you can trust!
