Organizing your finances and keeping a financial profile of smart investments can be a life-long endeavour.
The work of managing these financial assets is generally too much for one person to take, and is the main reason many potential investors reach out to a professional advisor for assistance.
And while thousands of Canadians rely on the services of a financial advisor, it would seem seniors are the ones that really know what they want when it comes down to their investments and those managing them.
In 2014, approximately 35 per cent of the complaints received by the Investment Industry Regulatory Organization of Canada (IIROC) were from seniors.
In order to avoid trouble with your finances and the ones managing them, here are three quick tips to being a smarting investor.
Use available resources to get informed
The Internet is inundated with resources to help you not only pick the right advisor, but to help you better understand the market in which your money will be operating in.
The IIROC offers resources on their website on countless topics ranging from advisor information, to glossaries of financial terms, to quizzes that will test your knowledge and help you understand the areas of which you may need help.
Check out your advisor
This is a critical aspect of picking the right person to manage your finances.
You’ve spent a long time earning the money you’ve saved and you want to ensure the right person is taking care of it.
Be sure to check into any prospective advisor’s background, their investment and work history and their credentials. There are also resources available online to help understand the different certificates doled out to advisors for courses and other educational achievements they may have acquired.
This latter information is not only important for understanding your potential advisor’s aptitude, but it’s also important in letting you know if they can handle the type of investments you’re looking to make.
Different advisors specialize in different areas of investments and have different education accolades to back that up. Be sure your advisor specializes in those areas you’re focused on.
Trust your advisor
This last tip comes after you’ve made the decision and picked an individual to assist you with your finances.
If you’ve done your research and followed the two tips listed above, there should be no reason not to trust your chosen advisor; they are professionals after all.
It’s important to keep in touch with them to have a current idea of your financial situation, but having an advisor should ease your money worries instead of increase them.
Besides, according to the IIROC, of the 22,000 advisors regulated under their organization, less than five per cent of them have complaints lodged against them in a given year.