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How do you choose a financial advisor?


Financial advisors are getting something of a bad rap these days. It has come out that advisors working in banks are pushed to perform in order to receive financial incentives. I feel badly for advisors who wake up each day and have to face conflicting responsibilities.

Here at BarecWealth, it’s just us. We have no one to answer to but you. That makes our line of responsibility absolutely clear.

There is no question that the financial advisor role is being challenged today.  Many people believe they can make their own decisions and manage their own investments, while others feel stuck with an advisor whose loyalty to them remains an open question.

This makes the matter of selecting the right financial advisor more crucial than ever. This issue was highlighted in an excellent piece by Rob Carrick in the Globe and Mail, under the title: ‘We are a little nervous about giving our savings to someone we don’t know – can you please advise?’

In the article, Mr. Carrick sets out a series of important questions you should ask of a prospective advisor. But the most important fact that Carrick raises is that you are the ones who hold the keys. If you feel pressured or judged by an advisor, that advisor isn’t right for you. If you don’t feel that you are valued as a client, or that your investments are “too small” to be taken seriously, you’re with the wrong advisor.

We believe we have an iron-clad pact with our clients. And we know our clients think likewise. The easiest test for an advisor is the issue of churn. How many clients decide to take their investments elsewhere? Over more than 20 years, our retention rate remains above 95 percent.

Of course, that’s not a fact many advisors will share with you. So you have to do your due diligence. Don’t ever be afraid to ask questions. We always want our clients to be well-informed. In fact, that’s one of the only criteria we use in accepting new clients – they have to be in engaged in the process of managing their money. We can’t do it alone.

And that’s about the best lesson to be learned from reading Rob Carrick’s piece. If you feel that you are on the outside looking in with your financial advisor, it’s a bad sign – a sign it may be time to find a better fit.

If you or anyone you know is uncertain about what kind of advice and support you should demand from your financial advisor, we’re always eager to share our perspective gained from years on the frontlines as independent financial advisors.

Thanks for taking the time to read this.

Eric Chong

1370 Don Mills Road, Suite 211, Toronto, ON  M3B 3N7

This information has been prepared by Barbara & Eric Chong who are Financial advisor for Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Financial Advisor can open accounts only in the provinces in which they are registered. For more information about Investia, please consult the official website at www.investia.ca

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