If you are currently working with a financial advisor, you’ll want to read the following scenario. Although we would all like to think that our investments are securing our financial future, that’s not always the case.
The story goes that an individual or a company hires an advisor to invest certain funds, with the idea that this money will grow over a certain time period. Although the market, as a whole, is doing well, the individual notices that his particular investments are not performing as well as he would like. Going over the monthly statement, the client has questions, so, naturally turns to his financial advice for Australians in Singapore for answers. The advisor, who was once helpful and personable, suddenly becomes vague and isn’t answering the questions with the same assurance he had when first hired to handle the investments.
Does the above scenario sound like your financial advisor? It is unfortunate, but actually occurs more often than we’d all like to think. If your ‘once helpful’ and confident financial advisor doesn’t have the answers to your basic investment questions, it may be time to jump ship. Here are a few other signs that it may be time to look for a new financial advisor.
- Has your financial advisor stopped taking your calls? A reputable financial advisor should be there to explain your investments, answer questions regarding fees, and continue to be available, even after your plan is in place.
- Your expert doesn’t know any more than you do. Unfortunately, many financial advisors have the title, but not the experience to back it up. If you have become more knowledgeable on your investments, financial plans, and wealth building than your current advisor, it may be time to move on.
- The relationship is strained. Your financial advisor may have courted your business in the beginning. They appeared highly interested in providing the best service and information before you committed to using them for your services. Now that they have your business and a plethora of higher paying clients, you are no longer important. Their time is devoted to others and you are feeling ignored.
- Pushing products. If your advisor is pushing you to purchase expensive propriety products or annuities this is a huge warning siren. They may be more interested in what amount of commission they could make instead of protecting your wealth.
- They have worked for numerous companies in a short time period. You may not have thought of this, but checking out your advisor’s job history on the database for advisors, Brightscope.com, may be a necessity. An advisor that moves from one brokerage or company to another may have money or compliance problems.
Hiring a financial advisor is only the first step in the investment process. Don’t become relaxed after that initial decision. Stay in touch with your financial advisor and ask for regular performance reports on your investments. Holding your investor accountable by taking an active part in your financial future is just smart business. Don’t be afraid to step up and keep them to their word. Keep in mind that investments will increase and decrease with the natural flow of the stock market. Don’t jump ship at the first sign of losing money, but keep a watchful eye.