The Advice Process

Having a financial adviser is a long-term relationship that will involve a few planning sessions at the outset and then regular follow-up sessions.

The First Planning Session

The first meeting is used to define your financial goals. Among other things, your adviser will want to know your current and future income and capital requirements.

Use this session to ask questions about goal setting and financial planning. Make sure that the adviser understands your priorities and objectives.

It is vital that you share your goals with your financial adviser as he/she is the person who will help you structure a financial plan that will help you achieve them.

Your adviser will also need to know your current financial circumstances. This includes:

• Your budget
• Any additional sources of income such as rental or investment income
• Your debts
• The provisions of your Will
• Details of your assets and liabilities
• Business involvements

The following documentation is also important:

• Will
• Marriage certificate and contract
• Salary slip or income statement
• A record of all income streams
• All policy and investment documentation (and any recent correspondence)
• A balance sheet detailing your assets and outstanding liabilities, including any business assets or liabilities
• A copy of your current pension/provident fund statement, and any other corporate benefits
   

Follow-up Planning Session

Your adviser will provide you with a comprehensive needs analysis. The analysis should highlight any gaps in your current planning and ways in which to address them.

Your adviser will introduce you to a selection of products that will suit your needs and risk appetite.
The Financial Advisory and Intermediary Services Act (FAIS) requires your adviser to practice “full disclosure”. This means they must provide a full break down of all the benefits and drawbacks of each product.

Listen carefully and ask as many questions as you like. Ultimately it is your future you are investing towards.

You now have a financial plan that sets out your objectives and goals, and an action plan for achieving those goals.

Review

You need to review your financial plan at least once a year to make sure your plan is on track. It is also important to review your plan whenever your circumstances change.

Adjust and fine-tune your financial plan over time. Your investment portfolio at retirement will look very different to the portfolio you had when you were 30.

Don’t change for the sake of change. Changes normally have cost implications, and they should be carefully considered. Make sure you understand any changes your adviser recommends. Don’t be afraid to ask questions.