“The trust of the innocent is the liar’s most useful tool.” – Stephen King
When it comes to managing your money, having a trusting relationship with your financial adviser is vital. After all, you need to be sure the person you’re dealing with won’t “take your money and run”, that you’re getting the best possible advice and that you’ll be charged a fair and reasonable price for this advice. So, how do you find someone you can trust? Here are some tips to help you out.
- Avoid anyone who wants you to sign up straight away. Pushy “sales” techniques are generally a bad sign and you should probably avoid anyone using heavy-handed tactics to get you on board.
- Furthermore, you should check their credentials. Are they a member of the Financial Planning Association (FPA)? What are their qualifications? You can check to see if they are licensed to provide the type of advice you want by going to the financial advisers register.
- Ask how they are compensated. If their answers are unclear or they avoid the questions, it may be an indication they are paid by commission and may not necessarily provide advice that’s in your best interest.
- Don’t trust anyone who sounds like they are speaking a foreign language when they are giving you advice. If the advice can’t be explained in a way that a 10 year old can understand, be very sceptical.
In the end, you are looking for a financial planner who can guide you towards a comfortable retirement and beyond. This requires a small leap of faith but, by following these tips, taking your time and doing a bit of research, you should be able to find someone you can trust to take care of your hard-earned money.
As Ernest Hemingway said, “The best way to find out if you trust somebody is to trust them.”
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