You deserve true financial advice – here’s a 10-point guide to finding it and avoiding product pushers

Tips for dealing with the individuals at your bank who are supposed to provide financial advice: Be aware that some of them may simply be sales representatives with a more impressive job title.

In order to address the anxiety experienced by their clientele in the present times, financial institutions are heavily emphasizing the assistance provided by their experts. However, the term "adviser," commonly spelled as "advisor" in opposition to the Globe's style, is frequently used as a marketing gimmick to make you more susceptible. While you might indeed receive some guidance, it is highly likely that you will be subjected to a persuasive sales approach aimed at enticing you to purchase products or investment management services.

Question the usage of the term "adviser" whenever it appears by posing these 10 inquiries:

What qualifications do you possess?

Inquire from a person who identifies as an advisor about their attained certifications and qualifications in advice provision or planning. Also, ask about the educational courses, examinations, and ongoing learning they have undergone. When it comes to financial planning, there exist three significant designations: certified financial planner, commonly referred to as CFP, registered financial planner, known as RFP, and personal finance planner, indicated as PFP. On the investment front, numerous designations are available - feel free to request additional information.

What other options do you have available apart from investments?

Guidance involves selecting and controlling investments. However, it is important to consider the worth of this limited range of guidance when you can easily obtain a well-diversified investment portfolio through asset allocation exchange-traded funds, all bundled up in one affordable package. Genuine guidance begins by analyzing your current financial status and your desired future position.

What kind of goods do you provide?

If you're only handling funds and investment products within the company, you're facing a sales apparatus.

If your advisor is anything except calm and direct when discussing fees, chances are you're dealing with a salesperson. Seek transparency regarding the cost of their advice and the investments they recommend. Genuine professionals will not only disclose the fees but also clarify the value you receive in terms of ongoing guidance and support. It's not solely about the amount you pay - the quality of what you receive for that amount is equally important.

How often will we get to communicate face-to-face?

A consultant cannot be successful without occasionally engaging in direct conversations with you.

What is your stance on Guaranteed Investment Certificates (GICs)?

You can currently get returns of over 5 percent with guaranteed investment certificates (GICs), and they come with very little risk. However, the commissions you earn from GICs are much lower compared to mutual funds. Be cautious of negative talk about GICs, but it's important to consider downsides such as high taxes on non-registered accounts, limited ability to sell before maturity, and the possibility of declining GIC rates in the future.

Are you interested in knowing the total amount of money I have borrowed?

It can be considered morally wrong to encourage individuals to invest money without inquiring about their existing debt, especially in a period where borrowing expenses are significantly elevated. It is advised to refrain from putting any funds into investments until you have settled your outstanding credit card balance.

Wouldn't you be interested in knowing about my children and parents?

In the 2020s, it's quite common for parents to offer financial aid to their grown-up children, even going as far as providing substantial sums of money ranging from five to six figures to assist them in purchasing homes. Simultaneously, elderly parents are also being financially assisted. Financial advisers and planners will be interested in understanding your familial obligations, while salespeople will politely acknowledge the topic if you bring it up.

What are your thoughts regarding the expenses associated with healthcare?

When talking about income during retirement, it is crucial to consider the expenses related to healthcare, specifically medical and dental treatments that are not included in the coverage provided by provincial or federal health insurance systems. A thoughtful financial advisor might also bring up the potential outcomes of either increased taxes to sustain healthcare services in the future or the introduction of more privately-funded medical treatments that individuals would have to pay for themselves.

What are your expectations of me? What are you seeking from me? How can I fulfill your desires? What specifically do you require from me? What do you need me to do?

A genuine guide or financial consultant desires your active participation in handling your finances, which implies inquiring, keeping track of your life, and staying true to promises regarding spending, saving, and investing. On the other hand, a sales representative will want to downplay your involvement with the intention of getting you to make a payment and remain silent.

Are you a young Canadian who is focused on finances? To ensure that you start off on the right foot and avoid expensive errors, we recommend tuning in to our highly acclaimed Stress Test podcast.