What to look for in a financial planner

In this age, having a financial planner at your side isn’t just nice to have, it’s a necessity – whether you need basic investment advice, a detailed estate plan, or even just a sanity check every once in a while.

Using proven strategies and products, these experts can help you maximise the value of your personal or business wealth. But with so much choice out there, where does one start?

Whether you’ve never consulted a professional before, are on the market for someone new, or simply want a second set of eyes on your portfolio, here’s what to look for in a financial planner.

First, determine your needs

When looking to enlist the services of a financial planner or one of the many investment companies in South Africa, the first step is to consider your personal situation and potential needs. This can help narrow the scope, as some advisors tend to niche down in certain areas.

I might be biased since I provide financial guidance for a living, but selecting someone with a breadth of expertise can prove more useful in the long run as your life, needs, and investment goals continue to change and evolve. For example, my personal approach is a holistic one where I offer an integrated service consisting of local and offshore financial structuring, estate planning, and retirement planning.

While wealth managers like myself can assist in several areas, no one can do it all. This is why, most of us have access to a trusted team of experts to help close a number of gaps, particularly regarding risk protection, tax advice, medical aid, and more.

Expertise and reputability

As you size up potential advisors or wealth managers, you’ll want to ultimately be convinced that they do indeed have the knowledge and expertise they claim to have. It’s important to be mindful when selecting a professional to help you save, grow, and protect your wealth, so don’t hesitate to spend time digging into their background.

Here in South Africa, financial services are one of the most heavily regulated industries in the country. A reputable financial planning practice or advisor must be registered with the Financial Services Conduct Authority (FSCA), and have a legitimate FSP number. If you can’t see it on any marketing collateral, ask them directly for it. As a minimum, your chosen expert should also hold the Certified Financial Planner (CFP) designation (or similar qualification) alongside commerce or law degrees in conjunction with this.

Experience is another crucial factor on the list of what to look for in a financial planner. Aside from professional qualifications, they should have a traceable online footprint with positive reviews or recommendations from third parties on platforms such as Hello Peter or LinkedIn. As with most things in life, personal recommendations are worth their weight in gold. If a trusted friend, family member or colleague can suggest someone, that’s also a great place to start.

Trust and empathy

While you also don’t need to be mega-wealthy to enlist the help of a financial planner, you do need to be smart about who you trust with your money.

Yes, building trust does take time, but from that first meeting you should have a sense that this individual is not only competent, but genuinely has your best interests at heart. A positive sign is their willingness to engage with you regarding your personal circumstances rather than just punting products that you don’t understand.

You’re going to want someone who knows your life, financial requirements, and attitude to risk like the back of their hand. You’ll also want this individual to stay with you for the long haul. Receiving personalised advice on an ongoing basis makes more sense as he or she will really get to know you and become better equipped to identify and pre-empt your needs before you ask (or even know to ask).

Ideally, your chosen advisor should come across as a mentor figure who is honest and intentional, ensuring you are well-equipped with the knowledge and tools to make better-informed financial decisions. You, as the client, have every right to expect outstanding service. And if that’s not the case at the onset or even later down the line, don’t settle. Instead, seek out a professional who wants to help and takes the initiative.

Advice Fees

Yes, it is normal and fair for advisors and investment companies in South Africa to charge planning fees and commissions on various financial products. However, this must be discussed upfront, so transparency must be added to your list of what to look for in a financial planner.

Advice fees can prove a hurdle for some at the onset, but one way of thinking about it, is by asking yourself what you could get in return, and if their knowledge and support are worth paying for.

If you can save a considerable amount on income tax, capital gains tax and estate duty. Is this worth paying an advisor for? If you can have someone who can see past your family dynamics and structure your investments the way you need them. Is this worth paying an advisor for?

The good news is that many advisory firms have negotiated favourable investment fees, which can outweight the cost of expensive financial mistakes you could make on your own.

Final Thoughts …

In a world of DIY-everything, with information readily available at our fingertips, it’s entirely possible to research and implement your own plan. However, this exercise is guaranteed to prove time-consuming and complex (even for those who live and breathe numbers and data).

As an experienced wealth manager, growing my clients’ wealth requires sophisticated strategies and advanced projections. I’m required to minimise mistakes while maximising every opportunity and maintain this trajectory over time. It’s not easy to get to this level, but that’s what I do, and exactly what I’m here for.

Now that you know a little more about what to look for in a financial planner or investment companies in South Africa, I’d be happy to prove myself a worthy candidate for your needs. Drop me a message here, and let’s get started.

I’m Giles Maynard. I provide individual investment and wealth management services for private clients and companies. I have been trusted by clients, large and small to manage, protect, and preserve their wealth. How can I help you with yours?