Tuesday, 30 July 2013 - 20:00
Choosing a Financial Advisor
I was recently in the position where I was asked what to look for when choosing a financial advisor. I realised that finding an advisor that suits one’s specific needs can be a daunting task. Below, summarised, are some key questions to ask when choosing a financial advisor:
How do they charge for their services and how much?
It is important to ask whether they charge an initial planning fee, whether they charge a percentage of assets under management or whether they make money on selling you a specific product. By doing this you will know whether they have an incentive to sell you certain products and may be biased towards them. Independent advisors represent several companies while tied agents are usually restricted to the company they are employed by.
Credentials and certifications:
It is best to go with an advisor with a globally recognised financial designation, including CFP/CFA/CA/Actuary. These certifications ensures that the financial planner meets the highest international level of education, experience and ethics for providing financial advice. Ideally one wants an advisor that is both qualified and experienced.
Even more important will be to check whether they are licensed with the FSB (Financial Services Board). An easy way to check this is to enter their details on the FSB website -http://www.fsb.co.za/FAIS/Search_FSP.htm
How often will the advisor communicate with you and what makes their client experience and service unique?
The regularity of meetings between you and your advisor will greatly depend on your personal goals. If your goals are, for instance, to retire within 10 years or you want to save up over the next 5 years to start your own business, one would expect a thorough evaluation and meeting at least twice a year. If, on the other hand, your objective is to assist your financial wellbeing in 40 years time and the product is a long term retirement annuity, an annual meeting may be more than enough.
Another important question will be what is the advisors area of specialization?
It is difficult, and probably impossible, for a single person to become an expert on all aspects of financial advisory as the playing field is just too big.
At Seed Investments we specialize in multi management but, coming from the wealth management space, we have recognised that there is a need to provide clients with consolidated or holistic investment reporting.
It is fairly standard from a wealth management perspective to recommend an appropriate investment portfolio for a new client but it becomes very complicated to consistently report to the client on their consolidated portfolio. The reason for this is because a client’s assets are usually spread across various platforms and each has its own method of reporting.
It is important for both the advisor and his clients to know exactly how their investments are positioned. A consolidated investment report, across all platforms, does just that.
At Seed, our wealth managers make use of consolidated reporting for their clients. This ensures that they can focus their time on providing financial advice and the ongoing management of client portfolios. Ongoing professional reporting ensures that both parties are fully aware of the client’s consolidated position on a monthly basis.
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Tue, 30 Jul 2013
South African stocks closed higher for a second-straight session on Tuesday, buoyed by paper-maker Mondi Ltd, which hit a record high after it said first-half profit would be sharply higher.
Interest and similar income declined by 1% to R25.4 billion (R25.7 billion). Net interest income was still up by 5% though, to R12.5 billion (R11.9 billion). Operating income before operating expenditure rose 7% to R20.3 billion (R19 billion). Net attributable profit increased by 13% to R4.7
Tunisia's largest labour union
called on Tuesday for the dissolution of the Islamist-led
government and the interior minister offered to resign as a
political crisis deepened.
Egypt allowed Europe's top diplomat to meet deposed Islamist president Mohamed Mursi on Monday, flying her after dark to Mursi's secret detention facility but ruling out any role for him in ending the turmoil convulsing the country.
Thousands of people packed into a sports hall in the southern town of Pozzuoli on Tuesday to commemorate 38 people who died when a coach plunged 25 metres (80 ft) off a motorway viaduct in one of the worst road accidents in Italian history.
World Markets (Spot Prices)
|JSE Top 40||17:00||36516.92||148.36||0.41%|
|JSE Indust 25||17:00||47193.21||789.38||1.70%|
|Rand / Dollar||19:59||9.8075||0.0250||0.26%|
|Rand / Pound||19:55||14.9136||-0.0628||-0.42%|
|Rand / Euro||19:55||13.0012||0.0281||0.22%|
|Rand / NZD||29/07||7.8625||-0.0257||-0.33%|
|Rand / AUD||19:55||8.8889||-0.1110||-1.23%|
|Yen / Dollar||19:59||98.0400||0.0980||0.10%|
|Euro / Dollar||19:55||0.7544||0.0006||0.08%|
|Dollar / Euro||19:59||1.3252||-0.0008||-0.06%|
|Pound / Dollar||19:55||0.6563||0.0046||0.71%|
Click here for the Sharenet Spot Price page
The JSE Today
* Includes all listed instruments on the JSE
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||49,898.00||518.00||1.05%|
|Oil & Gas ||34,296.00||187.00||0.55%|
|Oil & Gas Producers ||18,440.00||100.00||0.55%|
|Basic Materials ||24,685.00||-234.00||-0.94%|
|Forestry & Paper ||24,356.00||1019.00||4.37%|
|Industrial Metals ||22,729.00||-302.00||-1.31%|
|General Industrials ||122.00||2.00||1.70%|
|Consumer Goods ||50,607.00||338.00||0.67%|
|Automobiles & Parts ||8,109.00||-19.00||-0.25%|
|Health Care ||66,600.00||787.00||1.20%|
|Index Name||RP||Move||% Move|
|Food Producers ||72,562.00||688.00||0.96%|
|Personal Goods ||942.00||15.00||1.71%|
|Consumer Services ||9,272.00||215.00||2.38%|
|General Retailers ||58,547.00||536.00||0.92%|
|Travel & Leisure ||5,506.00||36.00||0.67%|
|Support Services ||2,504.00||63.00||2.59%|
|Non-life Insurance ||49,275.00||15.00||0.03%|
|Life Insurance ||28,869.00||-124.00||-0.43%|
|General Financial ||2,792.00||-7.00||-0.25%|
|SHARIAH TOP40 ||3,405.00||3||0.12%|
|FTSE/JSE SHARIAH ALL||3,540.00||6||0.19%|
|FTSE JSE Fledgling ||5,566.00||3||0.07%|
|FTSE/JSE Alt X ||1,010.00||3||0.31%|
|SA LISTED PROPERTY ||499.00||0.01%|
|CAPPED PROPERTY ||417.00||0.08%|
|FTSE/JSE RAFI 40||8,058.00||14||0.18%|
|Capped Top 40||19,307.00||99||0.52%|
|Capped All Share||20,755.00||94||0.46%|
|JSE TABACO ||6,673.00||16||0.25%|
Click here for the Sharenet Index Summary page
Latest Consensus Changes**
|AGL||ANGLO AMERICAN PLC||BUY||29/07/2013|
|AQP||AQUARIUS PLATINUM LTD||BUY||24/07/2013|
|TRU||TRUWORTHS INTERNATIONAL L...||BUY||24/07/2013|
|LHC||LIFE HEALTHCARE GRP HLDG ...||HOLD||24/07/2013||
|Expected||Company Name||Fin. Date|
|31/07/2013||AQUARIUS||June 2013 (Q)|
|31/07/2013||AQUARIUSCVT||June 2013 (Q)|
|31/07/2013||BATS||June 2013 (Interim)|
|31/07/2013||CAPITAL||June 2013 (Interim)|
|31/07/2013||KIBO||March 2013 (Interim)|
|TON||Tongaat Hulett Ltd.||31/07/2013||Confirmed|
|JDH||John Daniel Holdings Ltd.||31/07/2013||Confirmed|
|LHGP||Litha Healthcare Group Ltd.||31/07/2013||Confirmed|
|LHG||Litha Healthcare Group Ltd.||31/07/2013||Confirmed||
Stock Exchange News Service
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