Ask your financial advisor these questions and get a real insight about where you’re heading

Must-ask questions to a financial advisor

14:31 18 August 2014

Anytime you visit a financial advisor, planning the questions you are to ask him or her is a very important thing to think about. Regardless of the type of product you need advice on, there are some general questions that apply when you are seeking financial advice. 

 

Here are some of the questions that you could pose to your advisor so as to get more knowledge on money management skills.

 

Questions on investment

 

• What is the risk with investing in this product?
• Is the investment secure?
• How can I be certain about the growth of my investment?
• What is the required term of investment?
• Is there a penalty imposed on early cashing in on the investment?
• Is there any chance that the investment will have an effect on my taxes or social benefits?
• How can I know about the progress of my investments?

 

Questions on pension

 

• Is there a need to provide for other dependants once I die?
• How much tax will I have to pay for my pension income?
• Does it matter if I have a terminal illness that might reduce how long I live after I retire?
• If I have other assets I can depend on during my retirement years, can they affect how much I save for pension?

 

Questions on insurance

 

• What product am I covered for and how long will it cover me?
• Is the product really necessary?
• Can the premium increase at any time for any reason?
• Is there any reason that could lead to a rejection of my claim?

 

Questions on mortgage

 

• How much loan can I get?
• What type of mortgage would be best for me and my family?
• How much is the annual percentage rate?
• How much is the monthly pay on varying terms such as 15, 20 or 25 years?
• How regularly is my mortgage interest calculated?
• How will my repayments change if at all there is an  increase of 1% or 2% in the interest rates?