Let's face it-most of us don't have the knowledge or experience necessary to navigate the minefield of financial planning particularly when it comes to risk insurance products such as critical illness, disability, life and income protection.

So, unless you are willing to risk your financial future, ther are few better suited to the job of ensuring you get your planning right than a professional adviser.

The real challenge lies in finding the right adviser-someone with the expertise, qualifications, practical experience, service levels and personality to meet your specific needs. The key to finding the right adviser is to look for a partner that can help you manage your total risk exposure and financial security-not just purchase insurance.

To help you in your decision-making, AGS Financial Services recomends you ask the following important questions when choosing a financial broker:

Q: Are independent or tied to an insurer?

A: An adviser tied to a particular insurer will only be able sell that company's products, while an independent financial adviser can advise and sell products from any provider across the market. This allows you to compare a variety of insurance products and decide on the one that best suits your needs.

Q: How much will I pay?

A: When choosing a financial broker, it helps to understand how your adviser gets paid. Financial advisers get paid in one of the following ways:

 

• Commission Only
• Commission and fees
• Fee only 

 

Discuss the benefits and disadvantages of all payment methods with you adviser and establish upfront the basis upon which you will work with your adviser.

Q: What qualifications do you have?

A: Ask to see proof of your financial broker's credentials. The Central Bank of Ireland recently formalised qualifications for financial brokers and you should ensure that your adviser is regulated/licenced. This ensures that there is significantly less room for error and malpractice and as a consumer you are better protected as emphasis has been placed on putting client interest first and ensuring the quality of service and advice.

Q: How do you determine my specific needs?

A: A good financial broker will look at your needs and potential risks over the long-term-assessing everything from your future goals to life cover, critical illness and dissability, income protection, retirement, savings, investing and healthcare funding. They should also look at how your last will and testament interacts with your financial plan.
And remember, just like there is no single product provider that can cover all of the necessary covers in one neat, well organised and appropriately scoped package, your adviser may also call on specialists to look at specifis areas of your financial plan. A good adviser will always support the need to bring in specialists, especially with complex portfolios, to ensure that all your bases are covered and all consequences considered.

Q: How will you communicate with me and how often?

A: Staying in touch with your financial broker is critical to managing your portfolio and developing their knowledge and understanding of your needs. The regularity with which you meet will depend upon your goals. These should ne agreed upon with your financial broker at the outset. It is also important to consider "trigger events" that may necessitate action or advice;such as retrenchment, divoce or additions to the family. Any change in circumstances can alter your risk and should be evaluated as part of your financial plan an strategy.

The role of the financial broker has become increasingly more important as the global economy undergoes fundemental shifts. Now, more than ever, it is vital to know that the person you entrust with your financial future has your best interests at heart.

 Please contact Alasdair, he will happily create a financial plan for you or review your existing financial plan. Alasdair can be contacted via info@agsfinancial.ie or on 01-810 1912.