In the near future AI will replace financial advisers that sell life insurance and off-the-shelf investment products. At Virtual Adviser we are close to building the AI platforms to do that. It’s simple, really. Based on key financial metrics, a person’s financial need can be ascertained. Coupled with affordability calculations, the extent to which the need can be satisfied is quantified. The insurer that best matches the client’s needs, risk profile and lifestyle/brand preference is allocated. This is not rocket science!
But until then, you will have to do with these crafty sales people, mainly suffering from an identity crisis, that we call financial advisers (Note: the spelling “advisor” is the North American inclination to give the position more clout than it actually deserves). In South Africa, financial advisers are nothing more than commissioned sales people. Here’s 15 reasons why you should fire your adviser:
- Your adviser has not passed the Financial Services and Conduct Authority (FSCA) regulatory exam (RE1: for representatives). Passing this exam demonstrates working knowledge of the relevant laws (FAIS, FICA etc.) and the expected minimum Codes of Conduct. Candidates simply require grade 12 to sit for this exam, and it’s not a straightforward test. Passing this exam shows initiative. Failing which you should put on your orange wig and tweet: “You’re fired!”
- Your adviser has never invested a cent of their own money. Will you take fitness advice from someone who has neglected their own fitness? No. Why take a chance with your hard earned cash on someone who knows just the sales pitch of investing. Fire him.
- You know what you want. You are not looking for an adviser but for someone who can execute your plan of action. Why bother entertaining a financial adviser? They will charge a commission which will result in higher premiums for you or higher investment costs. Fire him. Contact us instead. We will execute your plans at a fixed affordable rate. No commissions. This will lead to greater savings over the term of investment or life of your policy.
- Your financial adviser is financially broke. You will be surprised as to how many of them are broke. Ask upfront for a balance sheet of his [personal or business] assets and liabilities signed off by an auditor. If he falters to show this … then be wary: a person that can not manage their own finances should never be allowed to advise other people on how to manage their’s. Fire him.
- Your financial adviser is loyal to a single insurance or investment brand. If he is honest, he will tell you that not all of the solutions in his brand’s stable are best in class, hence, he is subject to providing you with biased advice. If he does not admit this then fire him. Even if they do admit to it, how would you know what is the best solution available for you in the market? Well, that’s where we at Virtual Adviser have the competitive advantage. Our virtual team are highly qualified professionals who represent all the products available in the market. As a diverse team, we can point you to the best in class products that meet your specific needs. We are loyal to providing quality advice. We are not loyal to a brand. Contact us.
- Your financial adviser has the gift of the gab, a master sales person in a fancy business suit. Do not be conned into purchasing something that you do not need. Insist on a financial needs analysis that substantiates the solution presented. Holistic financial planning skills are rare. If your adviser can not present this to you, fire him.
- Your financial adviser has been debarred for malpractice. The onus is on you to verify your adviser’s good standing. If you are not sure contact us we will verify this for you or search for them here. Can not find him on the list of registered advisers? Fire him.
- Your financial adviser has a criminal record. Ask him to indemnify himself from any criminal or wrongful act in writing. If reluctant to do so, fire him.
- Your financial adviser frequently buys you gifts. Do not make the mistake of accepting gifts from your financial adviser. Their job is to provide you with quality advice. Accepting gifts makes it difficult for you to maintain an objective relationship. The decision to fire them becomes an emotional one. It’s a mind game. A once off small gift or birthday cards is fine. If he insists on sizable gifts, fire him.
- Your financial adviser does not find time to respond to your queries. Once he makes the sale and is not available to answer queries or make changes, fire him. Contact us.
- Your financial adviser is not accredited with the Financial Planning Institute of South Africa (FPI). The FPI hold financial planners to the highest global standards (professionally, technically and ethically), endorsing them with the highly respected CFP (Certified Financial Planner) title. Search for your adviser on the FPI website by clicking here. Learn more about CFPs by clicking on this link.
- Your financial adviser is a priest or a pastor. These advisers play the religious card of fear. “Deal with me or else….” Firing them becomes extremely difficult. You may even be ostracized from the commune. This often happens. Do not even hire them to start with. You really want someone who is dedicated to his field and keeps you in a steady line of financial prosperity, without the guilt trips.
- Your financial adviser does not give back to impoverished communities. This is a sign of being self centered. This shows that he is only interested in profits and commissions and does not have a balanced and holistic perspective on life. Fire him.
- Your financial adviser over indulges in alcohol consumption, gambles uncontrollably, smokes excessively, abuses drugs and does not interact appropriately with the opposite sex. Inadvertently, these habits lead to impaired cognitive capability and poor advice. Fire him…or her!
- Your adviser is a “Yes” man. You want an adviser who can constructively and professionally challenge your perspective such that it leads to better outcomes for you and your loved ones. Someone who avoids conflict and agrees to everything you say has only one thing in mind “I need to close this sale”. Fire him.
I have been rather brutal and blunt in delineating the 15 reasons to fire your adviser. I was a high net worth chemical engineer before joining financial services and had to deal with many crappy financial advisers. I never had the privilege of dealing with a CFP. I hope that this article helps you to find your Financial Planner. All the best!