Why do you need a Financial Adviser?
In a world filled with uncertainties, insurance plays a pivotal role in safeguarding our financial well-being. While insurance offers financial protection, the question often arises: why do we need a Financial Adviser? It is not uncommon for people to harbour negative perceptions about Financial Advisers, assuming they are merely salespeople with vested interests. However, when we delve deeper into their significance, we realise that Financial Advisers play a crucial role in our accomplishing our financial goals.One of the most significant advantages of having a Financial Adviser is their expertise. They have a comprehensive understanding of the risks individuals face and can identify potential gaps in cover that clients may not be aware of. By conducting a thorough analysis of a client's existing insurance policies and financial situation, advisers can recommend appropriate policies to bridge these gaps, providing a safety net against unforeseen circumstances and alternatively having their clients live with confidence.
Once you have formed trust, with your Financial Adviser you learn that your Adviser is not only that but also your partner in your financial journey, whether you want to start a family, get married, or start savings for your children’s education, these are all human milestones were an adviser can hold your hand and tailor a plan fitted for each life milestone.
The best way your Financial Adviser can put these skills to use and help you manage your money optimally is through regular financial reviews to ensure your plan is up to date and meets your ever-changing needs. Should you wish to start the journey with a Financial Adviser schedule a meeting and get the most out of these meetings by coming prepared with the right talking points and questions.
Checklist for your first visit with a Financial Adviser
1. Income and expenses summary
Be ready to talk about your monthly income and expenses with your Financial Adviser as this will provide a good overview of your current financial situation.
2. Goals
This is one of the most important points, in order to help partner with you on your financial journey, it is critical to understand your personal goals. Start thinking about your short-term and long-term goals. Do you want to buy a house in the next few years? Are you saving for your kid’s tertiary education? When do you want to retire? These will assist with your financial prioritisation.
3. Financial statement
Provide copies of your bank statement as it provides a clear indication of your affordability.
4. Will and estate planning
A lot can happen in life, there could be a marriage, divorce, death, or birth that your will and estate planning needs to consider. It’s critical to ensure your will and estate plans are updated based on any life changes on regular bases. Also bear in mind that these changes, as well as any lifestyle changes, may impact your risk cover, so give your adviser a breakdown of these, too – no matter how seemingly insignificant they are.
5. Ask your questions
In order to really optimize your meeting, have a list of all the questions that you would want to know from your Financial Adviser. Tackle areas of your finances that worry you the most, and how to protect yourself from various risk factors, such as loss of income, and market volatility.
It is never too late to partner with a Financial Adviser, should you wish to start the journey with a financial adviser please visit your nearest Sanlam Branch.
* Wendy Naruses is the Marketing and Communications Manager: Distribution at Sanlam