July 4, 2008, 6:00 am

How To Find A Good Financial Advisor Part 2

by: The Financial Blogger    Category: Financial Planning,Personal Finance
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Dealing with money means a painful and lengthy operation for several people. Managing your investment portfolio, looking at your debts and preparing a solid retirement plan are things that should be done by a professional. The problem is that our industry has too many clowns and car salesmen in their rank. It is your challenge, as a customer, to find the right consultant that will bring peace of mind along with some good returns 😉

The first post of this series was about honesty and integrity. While this is not a characteristic that will make your financial planner performs, it is the very basic of a financial relationship. Today I will write about pro-activeness and how it should be demonstrated.

Most financial advisor will claim their pro-activeness since it is something highly requested in the financial industry. We want a consultant able to read our mind and offer us products according to our needs. But be careful, most salesmen look like they are being pro-active and they just want to sell the latest flavour of the month in the financial world.

When I am talking about pro-activeness, I am talking about validating my needs before I express them. For example, if your banker (hopefully, he is a financial planner) offer you to do a retirement plan for free. This is what I call pro-activeness. You know that he won’t make a penny on this kind of work but he will still do it because your good is important for him.

A good sign that your financial advisor is pro-active would be that he is offering financial solutions that are not necessarily the most advantageous for him. For example, if your consultant is looking for your monthly charges on your bank account, you know that he is really working for you and he is not waiting for you to complain in order to take action.

Regularly follow-up is definitely another sign of pro-activeness. You are dealing with this individual for a specific reason; you want him to manage your money. Therefore, unsolicited follow-up such as a call when you receive your financial statements or when there is big news in the market would be appreciated.

This quality will bring you an additional piece of mind and an assurance that your money is managed actively. This will obviously not going to guarantee that you are going to make more profit, but at least somebody will be able to tell you before you get your financial statement.


Other post on this series:

How to find a good financial advisor part 1

How to find a good financial advisor part 2

How to find a good financial advisor part 3

How to find a good financial advisor part 4


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I was once impressed by my banker at RBC when he called me after looking through my file and noticing that I had a large balance on my credit card. He told me that I was paying too much interest that way and we could move it to my LOC. Very surprising and impressive. He didn’t know that I was using a 1% promotional rate temporarily, therefore he was trying to SAVE me money!

This guy was moved out of that position within a few months. The next guy never calls or replies to questions.

by: The Financial Blogger | July 4th, 2008 (8:54 am)

Proactive calls are part of a good advisor habits. Unfortunately, too many of them are too busy drinking coffee.

Financial advisors should be there to help you save money. Off course they will offer you “their” solution which they make profit from. However, it doesn’t mean that it is not good for you:-) In the end, if you save money and he made money out of it, it’s a win-win situation. This is the way it should be done 😀

Well, there was one realtor who impressed me most of all once. He showed me a house that was for sale by owner (and therefore he would get zero commission) and he refused to let me offer what I wanted to offer for a house, saying that he could get it for me for less. Which he did. In both cases he was suggesting something that was better for me and worse for him on the surface. Of course now I can’t recommend him enough so I hope he got more business from others because of his good deeds.

by: TKO from Ontario | July 4th, 2008 (10:48 pm)

Greetings from Ontario FB,

At what point would you recommend a person to get a financial advisor?
$5 – 10K Net Worth?

I have a sibling that is a ‘financial liability’.
(Too careless to save, too stubborn to listen, too clueless to budget.)
Wouldn’t a Money Coach or head transplant be better?

Pls advise,

by: The Financial Blogger | July 5th, 2008 (8:39 am)

Hey TKO,

Technically, anybody that is not in the financial services industry should seek the advice from a financial advisor. However, The problem with regular big banks is that you will get access to quality advice only if you are a “quality client”. Therefore, you would need about 100K to invest or be making more than 100K a year.

However, you can find really good financial consultant with investment companies such as Investors Group. Since they are paid on a commission basis, they will more likely to take anyone who is interested in their services.

I am preparing a post on questions to ask to your financial advisor to make sure he is a good one. It will be live next week 🙂

What do you need to manage with a 5-10K net worth? Not that 5-10K … if you have a big income then maybe but there is nothing you can do with 5-10K that requires a financial adviser. Just read some blogs or borrow a book from the library.

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