Your hard-earn money is an important part of your daily routine and you don’t want to be one of those who ignorantly invest their money, throwing caution to the air, and eventually losing everything in a transaction.
When it comes to investing your money, it is important to have a good knowledge of what you are investing in; however, the critical part of investing that you must not ignore is the financial advisor or firm that will guide you alright, imparts you with the right knowledge and help you make sure your money replicates itself regardless of the investment platform you are employing.
The first step to finding a good financial advisor is to ask for referrals from family, friends and associates. There are countless of financial advisors and firms competing for your attention with their colourful brochures and endless media publicity stunts. There are myriads of their executive marketers who are trained to convince potential clients to invest in their investment plans (I bet you have been approached by one).
However, it is important that you ask for referrals from family, friends and associates. Not just a good advisor or firm that they know or perceive to be good, but one they have patronised and such has turned their investment plans into reality.
The next step before setting up an appointment is to double-check the contacts you got through referrals. Look up such advisor or firm’s website so you can have a clear understanding of what such really specialises on.
Also, find the best possible way to find out if such has been dishonest or with an unhealthy record or unlawful act. Bad news spreads like perfume. The same applies to good news. I bet it won’t be a difficult task before you will find out, through words of mouth, that an advisor or firm is incompetent or dubious.
We are gradually shifting from certificate to know-how mentality in our society. But when it comes to investing your money, it is important that you know the licenses, credentials and certifications of the advisor or firm you have chosen.
This may not determine the investment approach of your financial advisor, but it is a proof of expertise and licence, by the governing bodies, to carry out financial services. It is a criterion that you are in save hands and I bet you don’t want to throw your money on the laps of an unqualified person or firm.
Also, if anything goes wrong, you will have the idea of the governing bodies to file a report or complaint to. This reminds me of a friend whose stocks, worth over forty million naira, were sold by a major bank (name withheld) without proper authorisation.
The friend quickly filed report, through a competent forensic accountant, to the Bankers Committee because such has an idea of the governing bodies that control financial institutions.
Once you are convinced and approve of your advisor’s licenses, credentials and certifications, you will want to know the clients under his or her belt. When you find notable organisations or individuals on the list of clients, then you should be rest assured that you are dealing with someone who knows what he or she is doing.
But you shouldn’t stop here; ask questions about the notable clients and find out if it is possible for you to call, email or meet with some of the clients. A reputable person or firm won’t have problem with that. However, you should make sure you reach out to at least two to five of such clients. It will help you gain broader knowledge about your advisor and his or her investment approach.
The final point to note is your advisor’s relationship with his clients. You don’t want to put your money in the hands of someone who barely has time to talk to you or advice you one on one. You advisor should be ready to sit with you and discuss your investment plan.
If he or she talks 90 percent percent of the time, trying to sell you some packages, then you have seen a weakness and it is better to walk out the door without transacting any business with such person. You advisor must be a good listener who should ask you several questions on how he or she can help you invest, protect and grow your money.
Alfred Ade-Ijimakinwa
