For some, few things are left unguarded, but this may not be the case with personal finances. This is exactly the reason many choose a financial adviser. What should I look for when selecting my adviser? Learn how to select the one that is right for you in as easy as one, two, three.
The A, B, C’s of Advisory
With the economy in financial turmoil and with little signs of a resurgence being shown, it can pay to prepare yourself for unforeseen circumstances.
Moreover, there are various reasons why people choose financial advisers and one of them is to plan ahead. Whether you are seeking to retire early, have a golden nest egg during your ‘Golden Years’ or just amass a small fortune, you may enlist the services of a financial adviser.
We must plunge into exactly what an adviser of this sort is. A financial adviser is a professional that is hired by you to select bonds, stocks, real estate investment trusts and other investments on your behalf. And, advisers are “fiduciaries,” which means they are legally obliged to act in your best interest.
What is the going rate for a financial adviser, these days? Financial advisers typically charge a flat salary, fee or receive a portion (usually one percent) of the assets under management. Because of the compensation structure, many opt for these kinds of advisers, because they are viewed as having fewer conflicts of interest than traditional brokers.
Alignment with a Purpose
1. With the aforementioned being said, you definitely want to search for a financial adviser who also is a certified financial planner (CFP). Why? Simply put, they take mandatory classes on different aspects of financial planning. They are regulated and licensed, too.
2. We use the Google search engine for everything else, so why not use it to do a little background research on your adviser, as well? Google your potential adviser; you are looking to see who administers the designation. Once you find this key piece of information out, call the administrator to verify that the credential is in fact valid. Remember: Do not provide any personal information to your potential adviser, unless you are satisfied that you have what you need in order to move forward.
3. Be in the know about what type of financial adviser to choose, in order to better manage your portfolio. Though, more than likely, you will hire a certified financial planner, now is the time to get recommendations from friends, family or colleagues, even.
4. Know what you are in the market for. If you have ideas about what you are seeking to do, this can make the experience a whole lot easier. For example, do you plan to invest a large sum or test the waters with a minute amount? What are your long-term and short-term financial goals? Your personal and financial goals are important and the choice is totally up to you.
Congratulations! You have now taken the first step to securing your financial future, by learning more about financial advisers. As with anything in life, the more you know, the better.