Four Tips To Find a Good Financial Advisor
It is now a fantastic time to get your financial house in gear. The downturn in the market, according to some people, is starting to sway the other way. Many of us could benefit from sound financial advice so the first thing you will need to do is find the best financial advice you can. While getting financial advisers to unravel complicated financial choices is a good idea, you have to remember that extremely the decisions made are yours. Only you can make the best choices for your overall, long term financial wealth. Any advice received should be treated as advice and not gospel or fact but someone's opinion for you for your consideration.
Before deciding on which advisor to select, here are some things you need to keep in mind. These tips will help you pick a good advisor and, hopefully, avoid falling into the trap of dishonest people who are not qualified to give you any financial advice: –
1) Does the adviser have any valid credentials (documents of qualification)? Many times an advisor will be what is called a 'tied agent'. That means that they can only sell the products and services of one company. That does not mean they can not help you but if they are tied to only one company they will be limited in the products they suggest to you and they will obviously not offer you unbiased information.
They are bound by duty to show you which of their products are best for you but they do not need to have to tell you that none of the products their company provides is a good fit for you and your goals and that XYZ company actually has something that may work better for you.
2) How does the financial planner make their money? It's almost always in the form of a commission or fees. That means if they do not sell you something, they do not make any money. Make sure you know what the total fees and commissions will come to. Sometimes they will receive multiple fees for various transactions, that can really add up … for you.
3) Fiduciary. This word is very important to your financial health. A planner who accepts fiduciary responsibility means that they are governed under the law to act in your best interests. Anyone who does not accept this responsibility is just saying that they will try to act in a way that does not hurt you.
4) Will the financial planner help you with every aspect of your financial plan? That would entail everything from having adequate insurance coverage, to investment choices and estate planning. There are many elements to your financial wealth that a good advisor should be able to help with all of them and provide you with a comprehensive plan.
When looking for the best financial advice it's important to keep the above list in mind. The whole process can be overwhelming and while it's important to enlist the help of a professional it's even more important to never forget that it's your money and your future. You need to be an attentive co-pilot on this little journey!