| TRAITS OF A BOGUS FINANCIAL ADVISOR | | | | There are several tell-tale clues of a sleazy |
| | | | financial advisor. One who has picked up |
| It has become a common occurrence for people, | | | | skills from the field and not certified is |
| especially those in the middle and upper | | | | very likely to be unprofessional in his/her |
| class brackets to solicit the services of | | | | dealings. The chances are good that |
| financial advisors. Financial advisors, like | | | | securities/shares recommended will be |
| any other professionals fall into two main | | | | appropriate, if the financial advisor or the |
| categories: the true expert and the bogus. | | | | company he/she works for is not tied to or |
| The begging question is: how does one tell | | | | totally independent of the company whose |
| the two apart? I personally think there is a | | | | securities/shares are offered. |
| fine line between the two categories and one | | | | |
| will have to keep his eyes open, ears attuned | | | | Steer clear of financial advisors who do not |
| and wits alert, in order to realize the | | | | spend enough time to get to know what your |
| difference. | | | | real financial needs are. Such advisors will |
| | | | come off as wanting to just get the |
| Essentially, a financial advisor is supposed | | | | commission they are entitled to in their |
| to ask his/her prospect necessary and | | | | dealings with you, and not actually |
| sufficient questions to unveil his/her | | | | interested in helping and guiding you to |
| personal circumstances and 'actual' financial | | | | achieve your financial goal. If you are not |
| needs and objectives. It is important that | | | | the right prospect, a 'true' expert will |
| the level of risk the prospect is comfortable | | | | candidly let you know, hopefully at the |
| with is ascertained during the 'diagnosis'. A | | | | 'qualification' stage or otherwise, as soon |
| 'qualification' of the prospect by the | | | | as it dawns on him/her. |
| expert, after the gathering of relevant | | | | |
| information is critical. 'Qualification' is | | | | A thorough research into the company the |
| the process of establishing whether the | | | | advisor works for, will be a step in the |
| financial advisor has access to the | | | | right direction. It will be a bonus if you |
| appropriate financial tools with benefits | | | | will be chanced to have a chat with some of |
| that will perfectly match the personal | | | | his/her customers chosen at random, to assist |
| circumstances and financial needs of the | | | | you to get a feel of the kind of service you |
| prospect, giving regard to various factors, | | | | may get. Note that it is not just the service |
| including the prospect's budget. It embraces | | | | you get during the sale or dealings that |
| a decision as to whether or not the financial | | | | matters, but more so the after-transaction |
| advisor is dealing with the right prospect. | | | | service. |
| This is a stage that can distinguish the true | | | | |
| expert from the fake. | | | | The financial markets are very dynamic, and |
| | | | it is necessary that one's personal |
| Integrity and trust must underpin the | | | | circumstances and financial situation are |
| financial advising role, and one has to be | | | | regularly reviewed by the advisor, and any |
| really wary of who he/she asks for advice | | | | necessary changes to the financial strategy |
| from. A good financial advisor is supposed to | | | | implemented with ample speed and agility, to |
| be your helper, your guide and your teacher, | | | | guarantee the attainment of financial |
| in your journey towards your financial goal. | | | | objectives. A good advisor must progressively |
| Needless to say he/she must have and be seen | | | | add value to the client. |
| to have sufficient knowledge in the field of | | | | |
| finance and investments, and must be abreast | | | | David Opoku |
| of trends in the financial markets. | | | | |
| | | | BA Hons. |