Whether you are nearing retirement age or not, you need to make sure that you start an investment for your retirement life. To do this, you might need to get pension advice. Here are some red flags when hiring financial advisors:
Lack of Knowledge of Options
When hiring consultants for pension advice, you need to make sure that your service provider knows different options for your situation. You should be given the right plan for your financial status. If you live in Hong Kong, you should be presented with ORSO schemes, whilst those in the UK should be provided with ROPS and SIPPS.
Unclear Understanding of Policies
Because of the variety of options, you also have to know about the policies each choice has. This way, you know how to start contributing to the plan. You will also know how the tax is deducted from your contributions or withdrawals. Moreover, this will inform you of withdrawal restrictions or policies. If your prospective consultant cannot provide you with in-depth discussions of these, then you need to find a new one.
No Expertise in Investment Opportunities
Whilst you are investing in your retirement fund, you also need to place your assets in other opportunities. A good advisor will tell you that your contributions will go to a fund which will be invested in other vehicles such as stocks and bonds. If your consultant does not discuss any investment activities your contributions go to, it might indicate lack of understanding of the pension plan.
Cannot Show Certifications
Lastly, you need to make sure that your advisor has proper licenses and certifications to be legitimately performing the job. This attests to their competencies, as well as their experience.
Get in touch with Pyrmont Wealth Management to get reliable pension advice. They have licensed and friendly financial consultants who will be happy to help you get started with your pension plan. Contact them today to know more about this service.