Quora Answer: How Has Your Experience Been with Financial Advisors?

The following is my answer to a Quora question: “How has your experience been with financial advisors?  I fired mine after years of little growth?”

It is interesting that there was a request to answer from me since I am a financial services advisor myself.  However, I do have my own financial advisor to manage my own investments and insurance.  It is important to have an external, professional perspective when it comes to finances.  My experience with financial advisors has generally been good, but perhaps it is because I am also in the same industry, and this helps me weed out the less savoury ones.  There is very little product recommendation since I know what I need, and I simply instruct them to prepare the paperwork, and I sign.

However, in the initial process of vetting a financial advisor, I do not begin by telling them that I am from the industry.  I simply state that I am a director of my own consultancy business, which is true.  I consider whether they do a proper fact find, whether they engage in product peddling, and I look closely at their product knowledge.  When it comes to investments, I need to satisfy myself that they understand the market and its movements, and have a basic knowledge of how economic policy has a long-term effect on investments.  Within Singapore’s context, financial advisors are competent when it comes to selling insurance.  But they lack real knowledge of investments and fund movements.  Those who can are few and far in between, and they are very much sought after.

Finally, I consider how diligent they are when it comes to client communication and fund updates.  Finding a financial advisor to sell you a product is easy.  Finding one that keeps abreast of developments that affect your investment and coverage, and then communicates that to the client is not.  This last bit separates a good financial advisor from the rest.