Finding an Adviser
Here are four tips to help you find a financial adviser who’s right for you. Research shows Manitobans who receive professional financial advice are more likely to achieve their financial goals.
1. Where to find them.
Financial advisers work in many different places including financial institutions such as credit unions or banks, mutual fund dealers, investment dealers, and insurance companies to name a few.
2. Types of advice.
Financial advice is a broad category and comes in many different shapes and forms. Understanding where you want support is essential, so you can ask about a prospective adviser’s experience.
For instance, advice on day-to-day budgeting is one type of advice. Other advisers provide long-term savings and investment planning, such as planning for your retirement, saving for your children’s college or university and for major purchases. Other advisers help specialize in reviewing your total financial picture, including life and personal insurance, estates and wills and other planning that impacts your whole family.
3. How they’re paid.
When you’re interviewing potential advisers, be sure to ask how they are paid. Some charge you a fee directly like you would pay an accountant or a dentist. This is a one way to ensure you are receiving completely independent advice.
Other advisers provide their services to you but are compensated “behind the scenes” when you buy a specific investment or insurance product they recommend. These commissions mean that while you don’t pay up front you will pay over time, with fees impacting your long-term returns.
In either situation, you need to be prepared to ask questions about the products they recommend for you to ensure they are just right for you.
4. Money is personal. So is advice.
The relationship you have with your financial adviser can be a very personal one. The individual you choose to work with should be someone you trust and who you feel “gets you.” A good way to make a decision is to find someone who has the experience and credentials, but who also truly makes you feel comfortable and supported.
Ready to go it alone?
Many Manitobans are confident in setting their own financial plans and investing on their own. If you love the details of financial analysis and learning some of the more technical parts of financial planning, there are a wide range of tools online, including self-directed investment platforms. Working with an adviser is not a mandatory step to financial success, but doing your research and having a plan should be.
Regardless of where you find your preferred adviser, it’s important to check their registration status, understand how they’ll be compensated for their services, and get to know them before you begin working with them. Explore more about working with an adviser.
For more information, check out the Manitoba Securities Commission’s “Working with a financial adviser” brochure.