a trusted planner


A good financial advisor can help improve your financial well being. But a bad one can leave your finances in disarray. How then can you find an advisor whom you can trust?

 

How can a financial advisor help you?

Many people do not realise that every financial decision has a larger long term effect. Which is the best way to structure your loans? Should you buy term or life insurance or do you need insurance at all? When you get your bonus, should you invest it, put it in the bank or use it to reduce your loan? Where should you invest your money? Your decisions to these and other financial questions may have little impact now but they will make a major difference to your net worth in ten, twenty years' time.

A good licensed financial advisor is able to guide you towards making informed decisions that can improve your financial health significantly. On the flip side, a less than competent financial advisor may tie up your money in all the wrong places.

Licensed financial advisors are specialists who are trained to take care of all aspects of your financial health. They take a holistic approach to getting your finances organised and put you in control of your financial destiny. They help you to plug the leak holes, avoiding unnecessary loss of money and recommend steps most suitable for your particular situation to grow your wealth.

 

Finding the right advisor

Your financial advisor will become your long term partner in managing your finances. Naturally, you would want an advisor whom you can trust and feel comfortable with. The other obvious factors to consider when choosing an advisor would be attributes such as credibility, competence and effectiveness. As a guide for you, here are the basic things that you should look out for:

The Basics

~ Recognised Qualifications
  There are some black sheep in the industry who do not have the necessary qualifications and skills. Nevertheless, they call themselves financial planners, advisors or consultants and push products in the name of financial planning. So do ensure that your financial advisor has qualifications that are recognised, such as AFP or CFP (Associate Financial Planner or Certified Financial Planner).
~ Wealth of Experience
  Look for an advisor who has the experience of managing money in both good and bad times. Experienced and competent planners do not simply tell you where to invest but are able to help you steer through the ups and downs of the economy as well as the rough patches in your personal situation
~ Strength of Company
 

Check out the company that the financial advisor is representing. The company should be a reputable company that has the strength and resources to back the advisor with research capability as well as solid advisory and investment processes. Both the company and the advisor should have a track record for helping people make the most of their money.
~ Scope of Services
  Not all planners offer comprehensive services. Find out if your advisor and the company has the skill, knowledge and resources to manage all aspects of your finances including tax planning, retirement planning, estate planning and risk management.

 

Other Important Considerations

You can learn more about an advisor's background and experience from the initial meeting with him or her. The meeting is also an opportunity for you to test your overall comfort level with the advisor.

~ Comfort Level
  A good rapport between you and your advisor right from the beginning is very important. It is the critical first step in establishing trust and confidence. Your relationship with your advisor is a long term one. A good rapport would facilitate your advisor's role as your personal coach who provides financial advice on an ongoing basis.
~ Written plan
  Find out whether you will be getting a comprehensive written plan. The written plan should allow you to make sense of where you are now, where you want to go and how you can get there. It provides you with a good overview of your finances and makes it easier for you to monitor your financial health.

You may wish to request for a sample plan. That will give you an idea how the plan can be of value to you.

~ Fee structure
 

Advisors usually earn their income either through advisory fee or commission on the products they sell or through a combination of the two. While many people either knowingly or unknowingly have been paying commissions to insurance agents and bank officers when they buy products from them, they are not willing to pay a fee for financial advice. Whereas those who appreciate the value of converting information to knowledge in money matters will take advice and pay for it. They recognise the difference sound advice can make to their financial well-being. They know that the money that will save and gain will far exceed the fee that they pay.

For you to make a decision on whether or not to pay the charges, it is important for you to gain a clear understanding of how the fees are structured. Getting the financial plan from your advisor is only the start of your journey towards a better future. Your plan should be a living plan. That is, the plan has to be adapted to your changing lifestyle as well as changing economic and regulatory environment. Check to ensure that you will be getting on-going advice and service from your advisor. He or she should continuously monitor your plan and adapt it accordingly.

~ On-going Advice and Service
  At ipac financial planning, our licensed advisors take extra steps to draw up plans that work for you. They include:

~ Taking a proactive approach in alerting you when your plan warrants modification as a result of changes in legislation, economic conditions or your personal circumstances.
~ Giving you regular streamlined reports, clearly showing your progress towards achieving your financial goals.
~ Acting as a sounding board for your major financial decisions so that you can make the right choices with confidence.
~ Acting as a personal coach who provides financial advice on an ongoing basis.
~ Connecting you with other professionals for advice on estate planning, tax planning, insurance, asset ownership structures, legal matters and other areas where you need help.

Connecting you with other professionals for advice on estate planning, tax planning, insurance, asset ownership structures, legal matters and other areas where you need help.


Start a strong partnership with your licensed Advisor and you can chart your financial future. Click HERE to arrange a complimentary meeting with an ipac adviser in Hong Kong.



This information presented in this website is of a general nature only and therefore does not take into account your current circumstances, financial situation, individual needs or personal investment objectives. Please do not act on any information in this website, but seek advice from your financial adviser. This information is subject to change.

 
 
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