6 Questions to ask your financial planner

6 Questions to ask your financial planner

Published on 4th February, 2019 at 10:24 am

1 . What credentials and qualifications do you have?

“You’re looking for a well-qualified financial planner. Ensure that they’ve attained their FAIS accreditation and regulatory exams,” says Bolofo.

2. What services do you specialise in?

Some planners are specialists in a certain category, while others are placed to give advice across a wider number of categories. Make sure the planner you’re talking to is suited to your specific needs.

3. Can I see a sample financial plan?

While financial plans differ, your financial plan should evolve and be aligned to your life’s different stages. Bolofo advises that a good financial plan should comprise of the six steps of financial planning:

  • Initial contact
  • Fact finding
  • Data analysis
  • Recommendations
  • Implementation
  • Review

4. How can we draw up an effective offshore investment strategy?

This should encompass risks and how these will be managed, plus tax legislation as well as the best time to take your money offshore. “Your financial planner should make sure that they recommend strategies which are Regulation 28 compliant,” adds Bolofo.

Regulation 28, issued under the Pension Fund Act, limits the extent to which retirement fnds may invest in particular assets or in particular asset classes. Its main purpose is to protect your retirement provision.

5. When will be the right time to retire and what’s the most effective way to make this transition?

“It’s also vital to preserve your accumulated savings from your pension and/or provident fund so you can grow your retirement savings through compound interest,” explains Bolofo.

6. If you want to move abroad: how can we work out a financial action plan?

If this is relevant to you, know that moving abroad can be costly. Your planner should be able to assist with a strategy that helps you move, as well as pay off outstanding debt. If you have savings, find out which ones you can access and what the tax implications may be.

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