In today’s ever-changing economic climate, staying on top of your finances without any help is impossible. Reliable advice is vital for planning and creating future financial growth and independence. With so many chancers out there, how do you protect your pocket and avoid getting hoodwinked? In this article, we’ll share some secrets that many financial advisors in Melbourne keep from their clients. Refer back to this information when compiling the questions that you’d like to ask a potential financial advisor in the future.
- Be Realistic About Your Investment Growth Expectations
The markets continuously fluctuate, making it impossible to guarantee an amount of growth you’ll make on an investment. There’s no way for your financial advisor to know what you’ll make in advance unless they’re taking part in insider trading. What matters is that your chosen financial professional has enough experience and analytical skills to guide you into making the right investments.
- Run A Background Check Before You Commit To Hiring
Research should decide who you trust with your finances. Do some research online, ask for a reference to call or speak to a friend or relative who’s worked with them before. You have everything to lose, so don’t take any chances. Anyone in Melbourne can call themselves a financial advisor, but are they certified? It’s important that you partner with someone who’s educated, experienced, and committed to industry ethical codes.
- There Are No Guarantees When It Comes To Investments – Just Calculated Guesses
Your financial advisor’s advice should be informed by an understanding of and experience in the market. Once you hear ridiculous promises, like a 25% growth guarantee in months, run for the hills. Any financial advisor in Melbourne that doesn’t tell you that the markets are unpredictable is being disingenuous and should be avoided.
- Commission-Based Products May Bring About A Conflict Of Interest
Some financial advisors push products that will earn them some commission but not help you. This is a red flag, because the moment you and the advisor are in the same position of potentially gaining or losing money, the lines are blurred, and your needs may not come first anymore. Ask for full disclosure about this to avoid having your finances compromised.