Looking for a financial advisor

[Messugga]

Hi guys,

I'm looking for a good financial advisor. I've been looking to diversify my investments a bit and I'd do it myself, but I simply don't have the time to properly research everything, in the short term.

Can anyone suggest someone with a good reputation that I can use? I spoke to one a year or two ago and it was obvious that this guy was getting significant kickbacks through pushing certain products. When I refused to take a RA that he suggested and told him I would rather opt for some of his other options, it seems he lost complete interest in me because I never heard back from him.

Anyway, some help with this would be appreciated.

 

[ClintZA]

Referrals from individuals you know are always best but unfortunately even this is not foolproof as they may just have liked the individual and it may not necessarily mean their advice was great.

You can find registered advisers listed on the FSB website but then it will be a bit like throwing darts at a table to decide who to choose. Some will be crap, some will be good. I am Durban based so could only advise on guys here. Obviously it would be myself or one of my colleagues! ha ha

Are you looking at collective investments/unit trusts, endowments, RAs and the like? If you are looking for more "obscure" investments then most financial advisers would not be the best choice for you as the scrupulous ones will not dabble in things outside of their mandates.

 

[LazyLion]

We have been VERY happy with these guys.
http://www.frontfin.co.za/

Our contact there is Mr. E. Kritzas (we call him Lucky )
He gives VERY personal attention and is very level headed.
He is very much performance motivated and if a product is not doing well, he will tell you and show you what to switch to.

Tell him Gary and Jason sent you.

 

[ClintZA]

We have been VERY happy with these guys.
http://www.frontfin.co.za/

Our contact there is Mr. E. Kritzas (we call him Lucky )
He gives VERY personal attention and is very level headed.
He is very much performance motivated and if a product is not doing well, he will tell you and show you what to switch to.

Tell him Gary and Jason sent you.

This does concern me a little. More detail would obviously be necessary to accurately criticise but my concerns are:

1. If a correct assessment was done of the client's needs to start with then regular switches should not be necessary.
2. Switching out of a portfolio locks in any losses. Prior to this they are merely paper losses.
3. Trying to time the market is one of the sure fire ways to miss out on any recovery unless the investor has a crystal ball and knows exactly when the markets will turn.
4. There are often costs involved with switching (although some platforms do allow free switches)

 

[LazyLion]

This does concern me a little. More detail would obviously be necessary to accurately criticise but my concerns are:

1. If a correct assessment was done of the client's needs to start with then regular switches should not be necessary.
2. Switching out of a portfolio locks in any losses. Prior to this they are merely paper losses.
3. Trying to time the market is one of the sure fire ways to miss out on any recovery unless the investor has a crystal ball and knows exactly when the markets will turn.
4. There are often costs involved with switching (although some platforms do allow free switches)

Yeah, thanks for wasting your time typing out all that crap, but if you don't mind I'll stick with someone who knows what the hell they are talking about.

 

[ClintZA]

Yeah, thanks for wasting your time typing out all that crap, but if you don't mind I'll stick with someone who knows what the hell they are talking about.

The response was hardly typed for your benefit but for those reading your post.

 

[AlphaBravo]

Yeah, thanks for wasting your time typing out all that crap, but if you don't mind I'll stick with someone who knows what the hell they are talking about.

haha

 

[Messugga]

Referrals from individuals you know are always best but unfortunately even this is not foolproof as they may just have liked the individual and it may not necessarily mean their advice was great.

You can find registered advisers listed on the FSB website but then it will be a bit like throwing darts at a table to decide who to choose. Some will be crap, some will be good. I am Durban based so could only advise on guys here. Obviously it would be myself or one of my colleagues! ha ha

Are you looking at collective investments/unit trusts, endowments, RAs and the like? If you are looking for more "obscure" investments then most financial advisers would not be the best choice for you as the scrupulous ones will not dabble in things outside of their mandates.

I have been looking at collective investments purely because they have less information for me to understand (and it's all nicely packaged) than individual stocks or futures and all those things. I'm pretty new to the game, hence why I'm looking for an advisor instead of doing it myself, so I'm open to suggestions.

I'm young, I have a pretty healthy risk appetite and I have some money in property already. The market's just been a mess lately so I haven't worked up the courage to jump in.

I'd like to avoid RAs. I would derive minimal tax benefits from it as I pay quite little tax as is, and from my research, they don't tend to perform particularly great.

 

[Messugga]

We have been VERY happy with these guys.
http://www.frontfin.co.za/

Our contact there is Mr. E. Kritzas (we call him Lucky )
He gives VERY personal attention and is very level headed.
He is very much performance motivated and if a product is not doing well, he will tell you and show you what to switch to.

Tell him Gary and Jason sent you.

Thanks Gary, I'll look into them and hear what he has to say.

 

[ClintZA]

I have been looking at collective investments purely because they have less information for me to understand (and it's all nicely packaged) than individual stocks or futures and all those things. I'm pretty new to the game, hence why I'm looking for an advisor instead of doing it myself, so I'm open to suggestions.

Many seasoned investors will point out that they feel they can get better performances themselves and point towards costs but they fail to realise that some just do not have the time, nor inclination, to spend hours monitoring their investments. A unit trust leaves the work to the managers. And ETFs and the like do not always outperform unit trusts as some seem to insist.

I'm young, I have a pretty healthy risk appetite and I have some money in property already. The market's just been a mess lately so I haven't worked up the courage to jump in.

If you are investing on a recurring basis then a "messy" market could be the perfect time to get in there. Remember you'd be buying units on a monthly basis so a "falling" market would not necessarily be a bad thing. Pointless waiting until the markets have recovered before hopping in. I always relate it to purchasing a house. The time to do so is when the housing market is in a bad state. Obviously it is different with lump sum investments.

I'd like to avoid RAs. I would derive minimal tax benefits from it as I pay quite little tax as is, and from my research, they don't tend to perform particularly great.

RAs most definitely have their place, especially if you are saving long term for retirement, and not just from the tax deductibility perspective. There are better tax rates on returns within the fund and a tax free portion at maturity (which would be increased by any amounts you have not claimed as a tax deduction). But it does need to be traded off against restricted access to the funds prior to age 55 and the 1/3rd 2/3rds rule at maturity.

But in saying that, if someone was totally opposed to them I would advise them of the benefits but never push them.

 

[SauRoNZA]

Hi all,

If you are trying to find a good financial planner then check out Objective Money (www.objectivemoney.co.za). They have a large database of verified financial planners and you can see what their customers think of them through the user reviews.

Strange how of your three posts one is missing and the other two both say this exact same thing.

Any place that relies on User Reviews for their own marketing is trying too hard in my opinion. Any place that has people going onto forums to sneak in free advertising is much worse.

 

[F40]

Avoid "financial advisors" at all costs. You'd do better just going the ETF route.