What if one person could single-handedly save you money and continuously grow your wealth?
A good financial advisor makes all the difference when it comes to your money. Unfortunately, it can be very difficult to find a trusted financial advisor in your city.
With the right tips, those, you can blast past those difficulties and find the advisor of your dreams. Keep reading to discover our top tips!
Who Needs a Trusted Financial Advisor?
We’ve put together the ultimate guide for finding the best financial advisor. But it’s important to start with the most basic question: do you actually need an advisor?
Contrary to popular belief, you don’t need to be old and rich to need such an advisor. Basically, anyone who is managing assets or investing in the stock market would benefit from professional financial advice.
Additionally, anyone going through major life or work changes should consult with a professional. They can also offer guidance on important protections such as freelance insurance that you may need.
If your financial life mostly consists of depositing checks and paying regular bills, you are good to go. But if things get more complex, it’s good to have a professional in your corner.
Know Your Needs
Another way to determine if you need a financial advisor also ties into how you choose the right one. Specifically, you need to know what your financial needs really are.
For example, specialized planners can help with things like retirement income planning. They can help you figure out the complex intersection of retirement funds, pensions, Social Security, and taxes. They can also provide good news, like letting you know how quickly you can retire!
Other specialized planners focus on investment. They can help you diversify and manage your portfolio and grow your wealth in a way that aligns with both your short- and long-term goals.
Finally, there are general financial planners who take care of everything else. This includes how much you should be saving each year and what kind of insurance is best for you and your family.
Check Their Training
When you hire a financial planner, you are doing more than paying a pro. You are actually trusting another person with your financial future.
That’s why it’s important to check the fine print. You’ll want to make sure that anyone you hire has completed the kind of special training they will need to properly handle your account.
Verify that prospective planners have the right certifications. This includes certificates such as the CFP, the PFS, and the CFA.
Anyone with these certifications has received extensive training and passed grueling exams. They will be more than prepared to offer the expert advice you need.
Research Their Rep
Of course, that brings up an interesting dilemma: when you have two or more people with the same qualification, how do you choose between them?
The best tip is to research what people are saying about the advisor online. This can include Google reviews, Yelp reviews, and social media chatter.
Don’t trust only one or two accounts. Instead, look for patterns. If several people have bad things to say about a particular professional, try to find someone else.
Beware Fraud
You’ll want to do intense research on potential advisors for multiple reasons. In addition to helping you find the right person, doing your homework reduces your chance of advisor fraud.
The biggest warning sign of potential fraud is that an advisor retains custody of your funds. Once you hand that kind of power over to someone, it’s easy for them to abuse it.
Try to find financial professionals who store your money with a third-party custodian. With this arrangement, the advisor still handles much of the money management, but the third party reports directly to you and verifies your signature on major transactions.
Not only does this help you avoid fraud, but it also provides immense peace of mind.
Figure Out the Fees
The main reason you are hiring a financial advisor is to help manage and grow your wealth. That brings with it an obvious question: how much is it going to cost you?
Before you hire an advisor, it’s important to understand how the different fee structures work. Only then will you be able to find someone in line with your needs and budget.
Some advisors operate on a simple hourly compensation system. Others may charge fees that scale up based on the assets they are managing.
Man advisors work on commissions. And some are non-fee-only advisors who receive alternative compensation or incentives from their parent company.
Generally speaking, commission-based works better if you won’t require regular assistance. For regular consultations, you may want to focus on someone with hourly fees.
Think Outside the Box (Or the City)
Quick: where do you think you’ll find the best financial advisor? Most people limit their searches to their immediate area.
There are certain advantages to local advisors. It’s easier to find out what people are saying about local talent. And it’s easier for you to meet with them face to face.
However, it’s possible to get expert advice from anywhere in the world. We recommend that you think outside of your immediate area and find the best advisor (regardless of where they live) for your needs.
Conduct An Interview
Whether the advisor is in your city or halfway across the world, it’s important to interview them before you make your decision.
An interview lets you feel out which advisors you are most comfortable with. This is important: you want to choose someone with whom you will have a good relationship!
The interview lets you ask questions about their education and experience and ask for additional references. After a few interviews, you should know which advisor is best for you.
Your Bottom Line
Now you know how to find a trusted financial advisor. But do you know who else can help you avoid major financial mistakes?
We shed a spotlight on celebrity finances, including disastrous decisions. To learn more about what to do (and not to do), check out our TV celebrity section today!
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