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BG603 Questions to ask your Financial Advisor

Taxco Business Guide


Good financial advisers will encourage their clients to ask questions. An adviser would rather have a satisfied client who understands his or her financial needs than an unhappy client who is disillusioned about the service they received.

1. Can I see your License?
Financial advisers in South Africa must be licensed with the Financial Services Board (FSB)

2. Are You Qualified?
Many advisers are certified financial planners (CFP), but experience can also be a form of qualification. Any adviser representing Taxco will meet the requirements set out by the Financial Advisory and Intermediary Services Act (FAIS).

3. Do You Have References?
A referral from a satisfied client is one way to select a good adviser. However find out first why the client is satisfied. Is it because the adviser doubled their money in a month or because they have a long-term financial strategy that they are happy with? Short-term gains can be reversed, but a long term financial plan creates long-term wealth.

4. Do You Follow the Six-step Process?
Most leading financial planners follow the internationally recognised Financial Planner Institutes six-step process for identifying a client’s current financial knowledge and experience, and current financial situation. The gap between the current situation and desired outcome helps to create the financial plan.

5. How Often Will I Meet With You?
Financial reviews are critical to any successful plan and one should meet with an adviser at least once a year. At this time changes to personal circumstances can be discussed as well as taking stock of whether or not you are on track with your plan.

6. Do You Have Someone Who Can Step Into Your Shoes?
It is preferable to deal with a financial adviser that is part of a group, so if something does happen to the adviser there is someone else who can take over the relationship.

7. Which Companies do you Deal With?
Make sure your adviser has contracts with reputable service and product providers. Our advisers undergo on-going training and have access to a team of experts who can assist the adviser on the more technical aspects of financial planning such as estate duty, taxation and trusts.

8. What do you Charge and What Will You Provide for This Fee?
It is important to understand how the adviser earns an income. Some are paid commission by the product providers they represent and others an advisory fee from their clients. You need to understand what services this includes and whether you feel that you are getting value for money. Clients can stop their ongoing advisory fee on investment products, if they feel their adviser is not providing a service. Changes to legislation also allow clients to now redirect any ongoing commission on their investment products to a new adviser if they change advisers.

9. What are the Costs of this Product and what is your Commission?
Costs matter, especially on investment products where they can affect total returns. A good adviser will offer you various choices where you can decide on the relative costs and benefits of the products on offer.

10. Why is this Product Right for Me?
The product must meet your needs, not that of the adviser so make sure you understand the product benefits, terms and any restrictions on claims or withdrawals.

How can Taxco help?

The most appropriate product will depend on a number of factors including consideration of taxation implications, the sources of finance, other legal entities involved, ownership and liability to creditors.

Being spoilt for choice is one thing, but making the correct choices from the beginning that suits your personal and specific business needs is essential and can impact on the eventual success of your wealth plan.

You are invited to contact one of our professionals at Taxco who can help you make an informed decision that will suit your specific needs and circumstances.Contact Us Now.

This Guide is subject to the Terms and Conditions of Use of Taxco Services and their Website.

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