Manul suggests: seven rules of a good financial advisor

Finann advisors do not have a good reputation in Czech. And they can do it themselves. The city often likes to sell products to earn commissions. Nkte. Jena, how to know the one who wants and um really help, from the one who just wants the client to turn around?

rove services nkterch too-consultant not optimal. Let’s face this for a long time and see that it worsens the image of our field. At the same time, however, there is no agreement on the market as to what such a financial advisory process should look like. Therefore, we decided to compile a document that would clearly explain how financial advice should take place and what consulting companies should address, such as India, the CEO of the Union of Financial Intermediaries and Advisory Society (USF). In this tentomanul will take over the whole market and we will be happy to know: both clients and the sun and responsible advisors

What it shouldn’t look like

A case that is far from unique: PanaXY contacted his acquaintance, who started working for a reputable insurance company, to do a free audit of his finances. that all the reforms have taken place, so it will be good to study the old treaty to see if anything better could be found. And he gave the scene so much to know. He recommended that Mr. XY terminate the existing building savings and supplementary pension contracts and gradually invest all savings in the investment life insurance. If Mr. XY needs a pension, I will choose it after two years. It’s a fantastic product, unparalleled, they just didn’t drink it. And you have to sign the contract now, because it is a limited offer and if he gave the day he would pay Mr. XY ul pension.

Where did the consultant make a mistake or make a mistake? They will pass only seven rules of good financial advice according to the USF manual.

1.Do not sign the contract at the first meeting

Did you drink with a counselor who is retired or long-term restfully and he presented you with the only one right at the first meeting? There is nothing hot.

In order for this consultant to be able to compile a draft proposal, they need to learn a lot about the vs and evaluate it in peace. And it only works after a few minutes at the flower.

TIP: Finann advisor vs me in case of mutual satisfaction given recommended to your friends and acquaintances. The bag should do so and after you have the opportunity to get the quality of its services. In this case, not for the first and second meeting!

2.Do not terminate the previous contract, but follow up on it

Clem consultant does not sell at any price, it is the job of the seller. Unfortunately, one of the major markets is the first negotiation of long-term contracts due to the fast duration. And that’s right.

The correct advisor should pay attention to what you have in one of the two, and be sure to cancel the contract only in extreme cases. Their premature termination is very often very inappropriate for the customer.

TIP: You will be very left if your advisor recommends terminating the existing long-term start-up product (for example, building savings) and spreading the pensions from it into life insurance. Such a transaction is usually very inappropriate for vs and the only purpose of the advisor is to maximize their commission.

3.Zvit cle a risk profile of the client

In order for a qualified counselor to compile een, he must know everything. Don’t worry, knowledge should be beneficial, but it will require patience.

The counselor must collect data on your life situation (family, children, full), finances (existing lawsuits, disputes), customs (pension and you only a reserve) and the relationship to risk. Not every time does the decline in your investment, even if it is designed for a long horizon. First, the counselor must take this into account in his work, preferably for the whole household.

TIP: The investment rules are that when investing for a long time, it is advisable to follow a dynamic strategy, even at the cost of risks. Therefore, it is not out of the question if the consultant informs about such a possibility, but he should not try to break the risk at any cost.

4.Thinking about no life situation

The advisor should never fully construct in investment and spoc, so that you will not be able to rely on him for ten years. It is important if there will be reserves in long-term products, where you will regularly return them, but you must also think about the unexpected life situation and needs. Therefore, you must have reserves in short-term products so that you can withdraw them quickly without great loss or fee.

TIP: Ask a consultant how your portfolio will adjust the product if a life situation does not arise, such as a loss of employment. Will you be able to choose a st spoench pension, or doasn pestat pay?

5.Explain the principles of product operation, fees and costs

Explaining something related to a given product is often the cornerstone of many financial advisors. In addition to providing the consultant with all the relevant documents that others have done, the consultant should explain in detail how the individual products work, how they have risks and how the fees are associated with them.

Information on how fees are paid over time is especially important. Whether evenly or tebadopedu. If you subscribe to them, you have to keep in mind that if you cancel the product in the first years, you will not get anything back again.

TIP:The consultant should present to the client the so-called models of payment of the fee. If the expected appreciation of the invested income is expected, it should be commensurate with the type and risk of the product. Even for the most risky investments, it should not exceed about 6 percent of the year. However promised you are evaluated, it is suspicious.

6.Think about the spread of risks

The golden rule of our grandmothers is that not all eggs are good to breed in one coke. Even a counselor should respect this and design a unit that stands on several separate sawmills.

A big mistake would be to bet on only one card – long-term investment – a share, a branch or a region. You would run the risk of only a limited decline in all your pensions. In addition, most modern investment funds have a diversification (spread) of risks incorporated into them.

TIP:Ask your advisor what specific valuable assets (assets) your pension will use and for which you should have them there first. Do not give answers of the type nai analysts recommend, or clients of your type liked. Want a specific answer and an explanation for which one is suitable first for vs.

7.Pedloit vce variant a

The correct advisor that the decision to save for retirement is a crucial decision for the client and that there is no single mature product.

Therefore, it should prepare more options for which the client can choose. For example, with different levels of risk, different exchange of investments, or the use of state aid. The counselor should present the client with the pros and cons of all suggested paths and let him choose freely according to his preferences.

TIP: State support is an important point in deciding where to save and invest, but not the only one. Can you name the only product where support has not changed in the last five years? No one knows how it will develop in five or ten years. Therefore, take it as a nice bonus, not the main reason for your decision.

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