There are no short cuts to saving money, and there is definitely no other way you can be money-savvy without a good financial advisor.
The best way to start a new year is by making sure that you have all your ducks in a row, and the most important of them all is your money. This is why we sat down with communications specialist at Financial Planning Institute of Southern Africa (FPI) Tsholofelo Dihutso, who shared solid ways you can have the right financial planner assisting you with financial challenges.
VERIFY THEIR STATUS
You won’t have to worry yourself with this if you will be going to your bank for assistance because banks certify financial planners’ accreditation. However, if you plan to go to a private financial planner, verify them yourself.
CHECK EXPERIENCE
This is very important to know because it gives you an indication of whether they can turn theoretical knowledge into practical advice.
KNOW THEIR REMUNERATION METHOD
Financial planners are paid in a variety of ways; commission, fee-only or on a monthly basis. Ask them to explain these methods clearly so you can understand the methods very well.
WRITE IT IN STONE
No, not literally. But once you have gone through these processes and you’re satisfied, insist on a written letter which is referred to as an engagement letter. This outlines the specific terms of the engagement and any potential conflict of interest. This letter should also disclose the financial planner’s/advisor’s method of compensation and business affiliations.
