How to find a good financial advisor?
Popular Articles
A good real estate agent combines several essential qualities: experience, training, a strong network and trustworthiness.
Find out how the reform of the Insurance Supervision Act is changing insurance advice, what you should pay attention to as a customer and how you can protect yourself from possible conflicts of interest.
Financial advisor is not a protected title in Switzerland and accordingly there are many providers who call themselves 'financial advisor'. Google also provides an almost endless list of search results if you search for 'independent financial advisor', for example.
Many financial advisors do not have the necessary professional expertise to provideholistic financial advice to their clients and many have high sales targets that they have to achieve by the end of the year. For these reasons alone, choosing the right financial advisor is one of the most important decisions in financial advice.
Clients have very different expectations of their advisor. Some pay attention to the reputation of the financial institution and others value the independence of their advisor. However, everyone is looking for a financial advisor who not only meets their professional requirements, but also has the right personality and life experience. Trust is also a necessary prerequisite for financial advice. For an optimal advisory experience, the basis of trust and the chemistry between customer and advisor must be right.
In addition to some objective criteria such as competence, experience and independence, sympathy and empathy are crucial for mutual trust and understanding.
How do I recognize professional competence?
The financial advisor's initial and ongoing training is of the utmost importance for professional competence. Competence in various specialist areas (investments, financing, taxes, inheritance law, pensions, etc.) is often required in order to be able to comprehensively understand complex customer situations and provide holistic advice.
It is often difficult for clients to assess the qualifications of a financial advisor. There are almost as many titles and qualifications as there are financial advisors themselves. Many customers have no choice but to rely on the information provided by the financial advisor or the reputation of the institution.
It is important to note that the qualification should be recognized by the state. Officially recognized qualifications include "Dipl. Finanzberater IAF", "Finanzplaner mit eidg. Fachausweis" or "MAS Financial Consultant".
What role does experience play?
Practical experience is just as important as continuous further training. Many years of professional experience allow the financial advisor to draw on valuable practical experience in consulting and thus ensure optimal advice.
What does independence mean?
Many financial advisors call themselves independent, but very few actually are. Only those who offer purely fee-based advice, do not recommend only their own products and disclose all commissions to the client can call themselves independent. He is only loyal to the client, has no conflicts of interest and acts as a kind of trustee who only represents the interests of his client.
When it comes to product recommendations or investment solutions, financial advisors are often exposed to temptations in the form of commissions. It is advisable to always ask for disclosure of commissions and other remuneration.
A good financial plan does not yet contain any product recommendations, only suggested solutions. The product recommendations are subordinate and separate from the financial plan. An independent financial advisor will tell you how clients can achieve their financial goals, not which products they should buy.
The decisive factor is personality
Every financial advisor is as unique as their clients. Openness, honesty and commitment are sought-after qualities. Assessing personality is subjective and ambiguous. Reviews from other clients can be a good guide.
How do I recognize a fair pricing model?
Nothing is free in the financial sector. In the case of supposedly free advice, the costs are hidden in the products or in commissions. Good advice has its price. As with a lawyer, many financial planners charge an hourly rate based on time and effort (CHF 150 to 250 per hour). Anyone looking for free advice must be aware that the advisor charges indirectly for their services (e.g. via commissions), does not necessarily act in the client's interest or may not have the necessary training.
Conclusion
A "good" or professional financial advisor does not want to close as many deals as possible, but to receive as many recommendations as possible. A good financial advisor is a good listener and is interested in the life situation, goals and wishes of their clients. A good financial advisor is an expert in his field who speaks his client's language.
Choosing the right financial advisor is not easy and is often crucial for successful financial advice. In practice, many customers are not given this choice and have to accept the financial advisor who is assigned and introduced to them.
And this is exactly where FinFinder.ch comes in. FinFinder.ch is the first (independent) platform that helps customers find and select financial advisors. FinFinder.ch suggests a small, suitable pre-selection of qualified financial advisors to the customer and then leaves the customer free to choose.
The contents of this article were written by registered financial advisors. FinFinder.ch assumes no responsibility for the content or editorial content of the information provided.