If the number of investment choices has you feeling overwhelmed or you’re not comfortable managing your own investments, you may find yourself seeking advice from a financial planner. There are many reasons why investors choose to work with an advisor such as:
- They’re not sure how to manage their investments or finances
- If you’re not comfortable choosing your own investments, then we suggest that you might want to work with an financial advisor. Advisors can help you with your investments, managing your spending and savings, managing debt or more complex situations such as estate planning, insurance planning, and tax planning.
- They have no time
- There are only 24 hours in a day and life is always busy. If you don’t have time to actively monitor your investments, you might choose to have an financial advisor do this for you.
- They have no interest
- Many investors would rather just have someone manage their investments for them. They may have no interest or desire to monitor the portfolios day to day.
Choosing an Advisor
We recommend that you ask friends, family, co-workers and other professionals you trust such as your accountant or lawyer for referrals. Make sure that you interview more than one advisor as what may be good for your friend may not be good for you. It’s important that the advisor you choose can help you achieve your goals and objectives. You can also contact your local securities regulator to find out who is registered in your area. The Mutual Fund Dealers Association of Canada (MFDA) and the Investment Industry Regulatory Organization of Canada (IIROC) can give you a list of registered member firms. You can also contact the Investment Counsel Association of Canada (ICAC), the Financial Planners Standards Council (FPSC) or the Institut québécois de planification financière (IQPF) for additional information.
Things to Keep in Mind When Seeking Advice
During the interview process, pay attention to the advisor’s qualifications and experience and make sure that the individual you are interviewing is registered with your local securities regulator. A good advisor will be very interested in your financial situation and goals. They should come up with a plan on how they’ll help you reach these goals. It’s important that the plan is reviewed at least once a year.
Questions to Ask When Seeking Advice
- What is your education and professional experience?
- How long has your firm been in business?
- How long have you been with the firm?
- Are you and your firm registered with a securities regulator?
- What products and services do you offer?
- How will you help me reach my goals?
- How often will you contact me or meet with me?
- How are you paid for your services (salary, commission or flat fee)?
- Can you give me references from clients who are like me?
