How do you choose your advisor?

In the environmental uncertainty, the advice of a professor is not too much. But where to go?

Whether the pandemic makes you want to invest or avoid financial products, it is in your best interest to seek the help of a certified professional before taking action.

In 2016, a remarkable study by the Quebec research center CIRANO observed that after 15 years, investors who had recourse to a professional accumulated 290% more assets than those who had invested independently. Even after four years, the difference was 69%. Through bull and bear markets, we therefore do much better when we are together.

It is important that the same survey revealed that 85% of families that used advisory services had chosen their own financial services advisor. But history does not say how.

The Chambre de la sécurité financier does not offer a dating service, but it is among its 32,000 members that you can find the rare pearl, since us ensure the good professional conduct of five main categories of advisers.

As in any professional activity, financial advice is offered in as many flavors as there are members of the profession, and also in a small selection of candidates recommended by your colleagues or friends, the latter have such varied needs and profiles that they are not necessarily. comparable to yours.

To begin, think about your needs, according to your stage of life, your assets and your projects. Do you want advice that focuses on your investments, or do you want it to also cover other aspects of your planning, from retirement to insurance to tax? Should you specialize in a particular clientele, such as entrepreneurs if you are one?

The place was important in the days of paper and meetings in silent offices. But the digital age and more recently COVID-19 have made this criterion irrelevant.

To reduce your list of candidates, you can instead ask them about their status (employee, independent, self-employed attached to a company), their method of remuneration, the degrees they hold, the professional network to which they give you access, the publications that they have signed, or any soft skills that could help you in your situation.

Remember that your counselor also plays an important emotional role. The more he looks like you, the more he will be able to identify with you, and understand you. The field of affinity is vast: age, sex, but also region of origin, centers of interest and hobbies… In short, deceived atoms also have their role to play.

Last but not least: check if he is licensed to practice and if he has a disciplinary history.

The perils of pursuing profits alone

The high volatility of the markets inspires recklessness in some investors. Since the beginning of the pandemic, there has been a marked increase in the transactions of “very high risk” products with the objective of speculating on short-term markets, often without success, according to a recent study by ASIC, the Australian financial regulator. markets. Many of these transactions are done independently with online brokerage services. The organization also reminded the public that such a hunt for profits often results in poor performance. Before you lose your shirt, consult a professional!

Why does your counselor tell you to stay the course in times of crisis?

COVID-19 and your finances: Talk to a certified counselor, not your brother-in-law

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