Author: Rory Brachner

There are tens of thousands of financial advisors in South Africa, but there is considerable variability in the quality of advice they offer. Many will focus on investments and other financial products you may need, but a good advisor’s role is a more demanding one.   How do you recognise balanced financial advice that is in your best interests?  The right qualifications  One gauge of an advisor’s suitability is his or her professional qualifications. The top echelon of financial advisors in South Africa have a postgraduate qualification such as the Postgraduate Diploma in Financial Planning, hold the internationally recognised Certified Financial…

Our financial decisions are consequential, it makes sense to have a trusted expert in our corner. However, it’s important to understand how your financial advisor earns their money and ensure their incentives are aligned with yours. Having a discussion around fees can ensure they are actually working for you, and not just selling financial products. Younger clients are increasingly exploring new financial advisory models that create better alignment. Financial advisor remuneration models These are the three basic remuneration models, although advisors may use a combination of these: Commission-based with highly misaligned incentives: Advisors earn commission from a product provider for…