A good financial advisor can play a very important role in helping you build a pathway towards your financial goals, develop a personalised investment solution and help you emotionally navigate the ups and downs of the financial markets.
When you have a good one, they are worth their weight in gold. But when you’re getting a one size fits all recommendation, questionable investment advice or just general lack of contact – it can start to feel like those fees you are paying are just not worth it. Here are a few red flags to look out for that might mean it is time to find another advisor.
They don’t understand you
A great financial advisor will learn as much as possible about you and your family before recommending an investment strategy. If a recommendation is made without a deep dive into your current lifestyle, expenses and retirement goals then that certainly is a concern.
Getting to know a client isn’t a one time event. Things change in life and your advisor should be on top of this. If you’re paying for advice that doesn’t evolve with your plans then you are potentially just numbers on a board.
Your investments aren’t properly Diversified
An advisor’s job is to create an investment solution that deals with the regular volatility in financial markets. If you’re noticing a clear tilt towards a particular type of investment with no clear explanation then that red flag should be going up. The rationale of having a properly diversified portfolio is that it manages risk and avoids huge losses.
They don’t think ahead
Things change, the markets change, tax laws change and if the person managing your finances isn’t proactive about those changes then you might be better off elsewhere. Your advisor should be contacting you, more than you contact them. Scenarios should be stress tested against income requirements on a regular basis to ensure that you are best protected.
There’s a lack of transparency
Do you know what you are paying your advisor? Do you know how much you are paying for the funds they recommend? Do you know how they are paid? Fees paid to advisors should be clear from the outset and remain clear while ever you are engaged with them as a client. How do you know if you are getting value if you don’t know what you are paying?
If any of these warnings ring true, feel free to get in touch with LFBB Financial Services to see how we can help you to shape your future. Call our team on 0114 272 9721