So Choose A Financial Adviser

A Forbes, the MarketWatch and CNBC, and many others also have compiled a list of how to pick yourself a financial adviser. Among the market conditions more like science fiction, each description, but in the hope that one day we will not be in the (insurance) agent is synonymous only financial adviser term, but I will summarize their advice because you find them useful things, what they are, what be sure to ask when you find yourself a financial adviser.

A good consultant is not an easy task to find a lot more time than, say, buying the next car.

The first advice is to first ask about that they work together and how advisers are satisfied with them. It is important that the financial situation like you and those close to ask your age. (In the US, most middle-class people have a real financial adviser. I was not thinking to ask that the neighbor gets them subject to unit-linked insurance).

Two types of advisory: a fee only who gives hourly rate of advice or the other kind who asks the magnitude of the amount invested, according percent (this is usually asset management, not smooth counseling) and those who sold the products commission of a share, so that interested to buy products they sell.

All experts agree that the fee-only advisers choose, because it makes possible conflicts of interest to the Advisory interested in selling other products than would be appropriate for you. (English name of the commission based commission workers.)

Clarify the beginning, why and how much you are paying and ask him to receive any commission on the products sold by the consultant, and if so, why, whom, what grounds when and how much. Undertake to 100% transparency, i.e to communicate exactly what much you are looking for? (Watch out, depending how you can ask for money, I can make money on selling the products as well. Unfortunately, more and more frequently at home is that they charge for the advice, but selling products more earn much more. I think it's best if a consultant does not sell products , is the cleanest situation. Of course, you can not achieve if you need trustee.)

You can also do it clean to pay single or continuous liaison (this is typical for asset management) and what is keeping in touch? Monthly, quarterly and annual consultation? You will be connected with him or one of his subordinates?

What do you carry a consultant? Financial consulting, tax consulting, wealth management, financial planning, or several of them?

Undertake to their essays at all times to act in your own good, never looking at his own benefit? (One of the best safeguard, if anyone does not accept commissions, either directly or indirectly).

So Choose A Financial Adviser

Are you willing to describe what you recommended and as promised and undertake any responsibility for it ("If only 20% of the year's yield will be, it will be much forints, Mr. Smith!")?

Ask about what financial qualifications has a financial consultant, because this is just as professional as, say lawyers. I do not think to talk to a lawyer who has just learned the profession from the Internet or a physician who is broadcast all over the Emergency learned for the surgery. Learn also how long it took to get this qualification. (If two weeks, or eight evening performances was once a week, it is worth so much.)

The qualifications available in our country, in writing, gives a clue to what made ​​the consultant. He also described what non-financial qualifications. (Omitted from the list of the American CFA, which can also be done at home already, this is one of the most serious of these qualifications, broadly in line with Europe's EFFAS)

Ask him how long has this business. We like the newly graduated doctors, but you may prefer the professor have an operation or a colleague who is not the first surgery, you have to choose from.

Was there ever be punished and if so why? Fenn had any time to KHR bad debtors list and if so, why?

If asset management is carried out, not only advice, ask how much the minimum, maximum and average portfolio under its management. How many clients do you have? (Too little and too much not happy.)

In the case of asset management is carried out and I just give them or direct access to the Portfolio will be without me and know my papers are free to buy and sell advice?

Which companies used to offer or sell its products, and a narrow range mentioned, why only them? Is there any possibility that any of the company's product offers, or someone (s) in the dependent agent, and recommend only those products?

It recommended to the annual average cost of our products and how it is calculated? In general, what used to recommend to clients? It offers an investment fund that has an initial or closing costs? (That is why it is important and what it tells us, that have been here I have written.) Take good care if itself does not disclose the cost or not with 100% aware of any attempts to play down their significance, we strongly think about that other consultants have You need. That has been here I have written more.

Where are the guarantees that its products are reliable and not recommended for scams? Why do you think the recommended products are safe your money?

If you must place yourself on a scale, but rather buy and hold, or market timer has it pursues describe the technique?

What used to be differentiated on the basis of who recommend what product? Or size-fits everyone used to say the same? How you know it, your financial situation, number and age of your children?

If you want to push it over these issues under the nose of an advisory list as well. The English version here you will find, if you like, turn into our country questions.

After all ask the question, appealing to the consultant? If not, think about whether you want to work with.

Very important: always the final decision is yours, no matter what is recommended by the consultant, it's your money, your future and your risk of getting what it invest your money. Do not make your decision right away, do not trust anyone without control. Always go to sleep for a few days and read the advice received after him, good for you whether this solution.

And some wrong question at the end:

You are what you keep your money? As a financial adviser may have other goals than you, it is not at all certain that this says anything. Let's say you want to buy a home within a few months, so most of the money pulled money market fund. Or, conversely, he also concluded an insurance that you are selling, be able to say that this product is so good to have him there. It will still be a good product. Risk tolerance may be different, not sure that you need to take from what he himself lost.

I will only give advice to you, if your money is at least as much as I do. It's also a great stupidity. You can also exceed own garden, like yours and the cleaning lady are even greater in the house than yours, otherwise how could you keep yours clean. The driver can also proceed more expensive car than yours, otherwise how could you take care of yours. Of course, torn clothes financial adviser who is dizzy from one to another credit card debt, do not accept me for advice, but the fact that he does not have 200 million to only 40 million, say, 30 or even know what to do with 200 million.

Are you willing to work for success fee? It's a silly question again. On the one hand a good performance to 10% annual yield, when the stock market rose 20% in the year? Second, you put it in an interest in the trustee to take extreme risks, since the benefits of hers, but the risk is yours alone. Naturally, it will go into a risk, which is not certain that you go well.

I hope I could help, how to pick yourself adviser.

If you wish to know more about the financial matters, come to the Academy, three or four weeks to start the next. Low learn over 25 thousand forints six times in all financial matters, we should know a basic level.