For many years, there have been too many incidents where consumers ended up with unfair financial advice. Hundreds and thousands of dollars have gone down the drain due to bad advice from so-called professionals who wear similar smart outfits and carry business cards that say “financial advisor, consultant, representative, producer or whatever.” Whatever title they hold, there are still many unsuspecting consumers who are still operated on by butchers rather than certified surgeons.

As such, the term “financial advice” has become bad press. Ask anyone on the street what “financial advice” is to them, a term like “buy insurance or an investment” pops up right away. Let’s face it, asking to buy insurance or an investment is not the most attractive thing to do, it is more likely that you will invite a knuckle snack instead.

But wait! What Does Real Financial Advice Really Involve? One is sure that real financial advice does not only cover investments or insurance. True financial advisers are, in fact, like doctors. They advise your financial health and take care of your financial well-being. You don’t know a doctor to buy cough medicine before they diagnose you. Similarly, a true financial advisor always diagnoses your financial health first.

There are 3 things that I consider financial advisers to live up to their titles.

This is the first thing that I consider that many of the so-called financial advisers do not establish with their clients: cash flow management. That’s how it is. Real financial advisers don’t just want to sell you; they want to know your wealth. Do you spend too much? Is your debt ratio healthy? Are you managing your credit correctly? It is also the only determinant to analyze if you can take out any insurance or investment product if necessary. No, it is not the ‘budget you can set aside’ per say. Take, for example, if my cash flow shows a cash surplus of $ 100 each month, would it make sense if I set aside a budget of $ 300 to purchase insurance each month?

The following is the client’s current investment and insurance portfolio. Now it can be thought that the client’s portfolio is intended for advisers to know “what not to sell”. But in fact, real financial advisers analyze client portfolios to determine if they are generating adequate returns, their portfolio is aligned with their appetite for risk, their premiums justified by the amount of protection. A sad truth is that most people are already paying very high premiums for underinsurance. In this case, an even sadder truth emerges when these people are told to buy more insurance and ultimately pay even higher premiums for their insurance. A real financial advisor will restructure a client’s portfolio if necessary.

The next point can be a bit counterintuitive. But true financial advisers advocate financial education. For example, I always defend insurance before investment. So what if the client insists on buying investment products instead of insuring himself or his family first? While it may seem okay for financial advisers to adapt and listen to clients’ needs, the fact remains that most clients do not have financial education. Some just want to grow their money and think that insurance is a waste of money. Herein lies the job of financial advisers to educate their clients. True financial advisers don’t just listen; they are like doctors, sharing what is right and what is wrong.

So what has your financial advisor done for you?