A financial services firm provides advice to its financial advisors. Obviously, the ultimate goal is to optimize your personal finances. Hence, how to choose a good financial planner.
It’s not uncommon for you to be disappointed with the returns and advice you receive from certain financial services firms.
Unfortunately, some services are practically limited to receiving the trailing commission by justifying a small annual meeting with the client.
To fully understand the actions of a financial services firm and successfully choose your financial planner, you must know their different roles.
First of all, having a financial advisor in your life is pretty much a must these days.
Recurring studies prove that families with a financial advisor find themselves better equipped for their retirement and systematically have a higher net worth 🙂 .
Whether through the undertaking of a private practice or with major financial institutions, the financial planner is the “generalist” person to take care of your personal finances.
With so much knowledge, what roles can the financial planner have and what are their goals?
How to choose a good financial planner knowing the roles of a firm
Financial advisors play many roles in your financial life.
I like to compare these with GPs.
A good doctor takes care of all your sores but will refer your file to specialists when the situation requires it.
A financial services firm should play this role for you in my opinion.
The financial planner is the conductor of your personal finances, your taxation, your retirement planning, your estate, and your insurance needs.
Any good financial planner should allow you to:
- know and calculate your cost of living,
- plan your retirement needs,
- organize your insurance,
- optimize your investments,
- provide you with a good plan for your estate.
These are, in my opinion, the main roles that your advisor must provide to you.
Obviously, some will do it right, while others will cut corners. There are very good financial planners just as there are mediocre ones.
Consult the AMF to find out how to choose a good financial planner
You are probably wondering how to accurately assess these various skills.
I know that all of this is not easy.
I can easily make the parallel with my former profession.
There are veterinarians up to any situation and other veterinarians, let’s say….
We actually wonder how they got through all these series of exams to get the diploma 🙂 .
The AMF is a securities regulatory body. Thus, if no complaint exists against your financial planner, that looks good to you.
But that’s not all.
You need to go further in your thinking and also know your role in this situation.
This role is actually to successfully choose your advisor.
Take the time to carefully assess who wants to take care of your personal finances. Take the same precautions as when shopping for major purchases like your house or car.
Choose your financial planners like a house or a car
Here is my resonance 🙂 .
It’s very rare that you choose the first car for sale on the street, isn’t it?
You will shop, inform yourself and compare the offers and the different models.
You’ve probably asked your friends if they’re happy with their latest purchase. Some will even go so far as to consult magazines and various organizations to ensure the quality of the car.
Do the same when choosing your financial planner.
It’s all about trust after all.
Ask your friends if they are happy and satisfied with the service of their financial advisor. Ask about the skills of the individual.
Are there any complaints and reprimands from the AMF?
Of course, I wish you success in choosing the best advisor for your needs.
The best financial planner will be the one that gives you results and the one where the complicity is easy and real.
The subject of money is often taboo in your discussions.
And yet, that shouldn’t be the case. Optimizing your financial situation is undoubtedly the best gift to give yourself.
Know that a good financial services firm will be the one with which you will find it easy to approach this delicate subject.
