Avoid Cons and Quacks! How To Choose A Financial Advisor In Kenya
Finding a financial advisor in Kenya can be a game changer for optimizing your investments, managing cash flow, and setting long-term savings goals. However, choosing the right advisor is critical to ensuring your financial interests are prioritized, especially during uncertain times.
Given the number of people who have been conned by financial experts in this country, picking a financial advisor should be a serious affair requiring patience and deep research.
Understand Your Financial Needs
Before seeking financial advice, take a moment to define your goals.
Whether you’re looking to invest, plan for retirement, or need advice on budgeting, it’s important to clarify what stage of life you’re in and what you want to achieve. This will guide you in finding an advisor who can meet your specific needs, whether it’s help with taxes, estate planning, or retirement strategies.
Different Types of Financial Advice
Kenyans can choose between general financial advice or personalized financial advice, depending on their situation.
- General financial advice does not consider your personal circumstances. It’s more of an overview and may not be suitable for detailed planning.
- Personal financial advice is tailored to your individual needs and goals. For instance, if you’re planning to buy property, manage your pension, or grow your investment portfolio, personal advice can offer targeted solutions to achieve your objectives.
Personal advice can range from simple, single-issue advice to comprehensive financial planning, depending on what you need. It can also include ongoing advice, where an advisor regularly monitors your financial health and provides updates.
Finding a Qualified Financial Advisor
Once you understand the type of advice you need, finding a licensed financial advisor becomes the next step. In Kenya, you can:
- Seek recommendations from friends or family.
- Use online resources to search for certified professionals through financial institutions or independent bodies.
- Check the financial adviser register to verify qualifications and licenses.
Be wary of financial advisors provided for free by financial institutions, as they may be more focused on selling products than acting in your best interest.
Robo-Advisors: A Convenient Alternative
For those who prefer a more hands-off approach, robo-advisors offer online financial advice using algorithms. While robo-advisors may be cheaper and more convenient, their services are typically limited to basic investment recommendations and may not be ideal for complex financial situations.
What to Look for in a Financial Advisor
When you meet with potential advisors, consider it a job interview.
Here are a few key questions to ask:
- What are their qualifications, and who are their typical clients?
- How are they compensated, and do they earn commissions for selling specific products?
- How will they manage your investments, and how often will they meet with you?
- What happens if you need to end your agreement or file a complaint?
- Are they wealthy themselves or just masquerading to be?
- Go for honesty. This is one of the most underrated traits in Kenya yet the most important.
Conclusion
Understanding how an advisor handles these situations will help you make an informed decision.
Selecting a financial advisor involves more than simply accepting the one assigned by a fund company or insurance broker.
It requires actively seeking someone who will prioritize your best interests, which may take time and effort. However, this extra diligence can lead to better financial advice, cost savings, and higher returns, all while helping you reach your financial goals.
In the long run, the effort invested in finding the right advisor can pay off, leading to a productive partnership that could last for decades.
