Things you must know before you engage a financial advisor

Being an advisor myself, I have contemplated on whether I should write a piece like this as it may come across to be too biased or self-serving. Nonetheless, I think what I am about to share with you is important enough for me to face the criticism that may come along with the publishing of this piece.

I hope that by the end of this article, you will have a better understanding of some of the key considerations that you should have when selecting the advisor whom you would engage in to help you manage, protect, grow and preserve your wealth over your lifetime.

Disclaimer: The considerations that I will be spelling out in this article are based on my own opinion as well as the feedback that I have gotten with clients that I am serving. Bear in mind that there is no right or wrong answer, just what you are comfortable with and prioritize on.

Is it better to engage someone close to you?

For myself, it’s a plus point that he or she is someone that I’m close with, but it is never a decisive consideration. For some of my clients, it may or may not be a decisive consideration. Here is why.

Personally, the idea of engaging someone just because he or she is close to you does not make sense to me. At the end of the day, I believe that everyone should assess their advisors based on their skills and abilities to deliver the solutions that are suitable for you at the lowest possible cost.

That said, I have also had clients who engaged my service simply because I am someone whom they are closed to, and for that group of people, they engaged me because they felt that I am in a better position to advise them since I already knew their situation and they felt that they could trust me better than other advisors whom they may not be close with.

On the flip side, I have also had friends who deliberately chose not to engage my services because I am someone whom they are closed to. They either believe strongly in the saying that: “讲钱伤感情” (Direct translation: talk money hurt feeling) or they felt like their personal finances are too private to share with their friends or family. Hence, they would rather engage someone whom they are not closed to in matters relating to their finances.

Whose side is your advisor on?

In an industry filled with Insurance Agents, Bankers, Financial Advisors, and Independent Financial Advisors competing for your attention and resources, you must know whose side is your advisor on when it comes to the rendering of advice.

When it comes to recommendations and advice, is your advisor really on your side? or is your advisor on the side of the company that he or she is working under?

While it is inevitable that all advisors, be it independent or non-independent, will have some degree of bias towards certa