Financial Advice

What Areas does Financial Advice Cover?

Investors and traders can seek financial advice in the following areas:

• Identify financial goals and set priorities to achieve the goals.


• Find relevant information relating to banking services.


• Provide updates and advise on investment basics, including generating returns on bonds, mutual funds and stocks.

• Purchase assets, such as a car or home.


• Make a budget and keep expenses under control.


• Review and discuss estate planning and employee stock options.


• Use a loan facility to meet financial goals and control debt liabilities.


• Advise on tax planning and various types of insurance policies and their covers.


• Provide guidance on portfolio management, asset management and retirement planning.


• Make savings for kids’ education.

Paying for Financial Advice

Financial advisors normally charge for their services in one of two ways:

Commission: This can be either upfront or ongoing. Typically commission is an ongoing percentage that is deducted from the investor’s account.

Fees: Some financial advisers may charge a professional fee that is typically an hourly rate for his or her services.

If a financial advisor is being paid by commission, one should ask if they are compensated more for certain types of financial assets, as this may influence their advice. Even though this is a risk, investors have traditionally preferred commission as it is seen as being tied to the success of the investment portfolio.