Diligence Is The Price You Pay

I hope that this communiqué finds you well and with the 'SARS" bitter malady behind you. Now, that you are feeling pretty good with yourself, a person can find time to sort out other pressing engagements like financial planning.

Of the working people who have reached retirement age of 65:

• 47% are dependant on relatives
• 31% are forced to continue working or take up second careers
• 16% are dependant on a state pension - a mere R820 per month
• Only 6% are financially independent

Which category do you fall into? So what should you be looking out for?

To start with – when looking for someone to manger your Financial Planning you better from the offset feel comfortable with this person looking back at you. Remember, Financial Planning is a process and not an event. Although some events like the magnificent AMA BOKO BOKO is definitely a major event to feel comfortable with. Congratulations boys, men.

So, simply put:

• Truth, Trust, Transparency and honesty are some of the single most important factors in choosing and investment advisor.
• You should be brutally honest about your complete financial situation and goals.
• Confidentiality is key, one should insist on signing a confidentiality agreement.
• You must question until you understand fully. Simply trusting your advisor is doing them a disservice since if you are unhappy later because you didn't understand, it hurts everyone. Look for a contract.
• A good advisor wants to teach you. They want you both to be on the same page and to share a common understanding. This is how they add value, and it's their job.
• Advisors should always disclose their fees and commissions to you. There is nothing wrong with them getting paid, this is how they feed their family, but you should question if there are lower cost / commission options available for every decision you make.
• Finally, if you ever feel funny about something, or begin to even slightly doubt your advisor's integrity; find another.
• Your first duty is to protect your family and assets, and diligence is the price you pay.

Silke Financial Services has the skill and expertise to place your money in the most suited investments appropriate to your risk tolerance and time horizon.

If you have any queries regarding the above commentary please contact us on 021 683 3380 or info@silke.co.za. Silke Financial Services has the skill and expertise to advise you, appropriate to your financial situation.