Financial Advisors
Money Heroes - Episode 4
Money Heroes
Money Heroes is a 13-part series that explores various topics that influence our short- and long-term financial decisions. From credit and retirement to investments and holidays, we've got you covered with sound advice from industry leaders in South Africa that will accelerate your journey to success.
In the fourth episode of this series, we look at the role of a financial advisor in any financial plan. Why is it important to have a financial advisor and what should you expect from their services?
Find all your answers below.
The benefits of a financial advisor
Jeanette Marais, deputy CEO of Momentum Metropolitan, says that a financial advisor is a central part of any good financial plan. But where do you start looking for a financial advisor?
Recommendations from friends or family, the Momentum website or the Financial Services Conduct Authority are three good launching points to find an advisor, according to Jeanette. Some advisors only specialise in investments or tax, so one thing to establish within your first or second meeting with any advisor is whether or not they will be able to meet your specific needs.
Jeanette advises that you put honesty at the forefront of your relationship with your advisor because they'll be able to help you much more if they have a holistic, honest picture of your financial situation.
At this point you might be wondering if you even need a financial advisor? Jeanette's argument is that every person can benefit from having an advisor as a partner on their financial journey because while most people are emotional about their own money, a financial advisor will be rational.
Tips from Theo Vorster
When do you know you're getting sound advice from your financial advisor? And when do you know when you're not? Theo Vorster, CEO of Galileo Capital Holdings, identifies three warning signs that'll help you know when to question your financial advisor.
Here are Theo's three red flags.
The path to a good financial advisor
Rayno van Vuuren, a financial strategist and risk advisor at attooh!, says a good financial advisor shouldn't just push to sell you a policy but really try and listen to your specific needs.
To get to the right financial advisor, Van Vuuren suggests that you talk to somebody that you look up to with regards to the ability to manage money and ask them who their financial advisor or planner is.
Certain things change on a year-to-year basis and your financial plan needs to be adjusted accordingly. Van Vuuren emphasises the importance of having someone who has the knowledge to guide you through both the good and bad times in the economy.
How good advice turned Nadine Petzer's business around
Nadine Petzer, Managing Director of Nutriseed and Health Food Emporium, took a financial knock when she started her two businesses. Although she had built up a nest egg to sustain her personal expenses, it took her about four years to make that money back.
"There's no point in generating money through your business if you're not able to wisely push that into your personal space."
As her respective businesses grew, she realised it was difficult to spot mistakes in her books so she started getting some help from accountants. Today, Nutriseed and Health Food Emporium's financial planner is an integral part of the business operations and broader team.
"Our financial advisor is lucikily not very strict but he gives us advice and we have to take it," Petzer says. She adds that since financial advisors are specialists in their field, it would be unwise not to listen to their advice regardless of whether you like it or not.
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Building wealth is a journey
Who doesn’t want financial success? It’s something we all dream about, but getting there can be tough, especially if we’ve made poor financial decisions.It all starts by setting financial goals, but it can be hard to know where to begin. Having the right financial adviser can make all the difference and accelerate you towards success.Our advisers will get to know you – what do you value? What are your goals? This deep discovery sets the foundation for the relationship that is built on trust and a partnership with you.
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