Pension & Financial Wellness
Ray Hoger | Chair , Pension & Financial Wellness Committee , ARTA
Dreaming of the Right Financial Advisor
Our articles and webinars recommend that you speak with a professional advisor before making any financial decisions . But how to find the right financial advisor ? The answer : It depends !
There are independent and company-affiliated financial advisors . An independent advisor should generate personalized strategies based on your interests , risk level , and financial situation . An independent financial advisor charges a set fee : an hourly rate ($ 100 –$ 250 per hour ) or a set percentage ( 1 %– 1.5 %) of your investable funds . Independent advisors are perceived to provide unbiased service and offer a wider range of investment choices .
A company-affiliated financial advisor might have their choices influenced or restricted by the company ’ s “ set menu .” There may be no up-front financial cost , but they earn a commission on your financial purchases . You should ask how , and how much , they are paid over a one-year period , and if they can ’ t give you a straight answer , I suggest a hasty retreat .
Also consider the certification of your potential financial advisor . In Canada , there are Certified Financial Planners ( CFP ), Qualified Associate Financial Planners ( QAFP ), Registered Financial Planners ( RFP ), and Chartered Financial Analysts ( CFA ). They are backed by three separate professional organizations : QAFPs and CFPs by FP Canada , RFPs by The Institute of Advanced Financial Planners , and CFAs by the CFA Institute . These certifying agencies provide training , ensure ethical behaviour , and have a complaint process for perceived ethical breaches .
Some planners may have several designations from different organizations . Ask about unfamiliar abbreviations and then research : How are they certified ? How much education is required ? Is there a solid code of ethics ? Is there a clearly defined enforcement / discipline process ? fee-based company affiliated
32 | arta . net DREAMS FOR THE FUTURE