There are tens of thousands of financial advisors in South Africa, yet there is considerable variability in the quality of advice they offer. Many may focus solely on investments and other financial products you may require, but the role of a good advisor is far more demanding.The Right Qualifications
One indicator of an advisor’s suitability is their professional qualifications. The top echelon of financial advisors in South Africa possess postgraduate qualifications, such as the Postgraduate Diploma in Financial Planning, hold the internationally recognized Certified Financial Planner accreditation, and adhere to a professional code of conduct.A second crucial consideration is the advisor’s compensation model.
As explained, ideally, you want an advisor focused on providing objective advice, rather than solely selling financial products.Financial planning, at its best, follows a structured process involving several steps. For an optimal outcome, each step must be given due attention. Only a couple of these steps specifically involve products.The initial step involves you and your advisor getting to know each other and setting goals. This stage may involve some candid questions from both parties.