In the middle of 2020, I found myself on a video call with five close friends. We had all signed up for the same retirement annuity, which we were now realising was a big mistake.

Our financial decisions are consequential, it makes sense to have a trusted expert in our corner. However, it’s important to understand how your financial advisor earns their money and ensure their incentives are aligned with yours.

Why do you save and invest money today instead of spending it?

I suspect, like most people, it’s to provide financial security and peace of mind, ensuring that standards are maintained during your retirement years.

There are tens of thousands of financial advisors in South Africa, but there is considerable variability in the quality of advice they offer. Many will focus on investments and other financial products you may need, but a good advisor’s role is a more demanding one.

Finding the right financial adviser can be a real mission and before you look for one, it’s important to understand the environment in which you’re looking.