7 Smart Strategies to pick a Financial Advisor
As we get older and our time to save is much shorter, we want to make some smart financial decisions. We want to be choosy and pick the right financial advisor that can help us achieve our financial goals so we are prepared for retirement. Isn’t that the goal in later life to be comfortable without worry? That way we can relax and do those precious things we’ve earned the right to finally do ! I researched this meaningful topic and found an article from a company called “Smart Assets” that has the right idea. Catchy name too !! They even match you up, depending on your needs, with an advisor that is tailored to your situation. Their advisors are all Fiduciaries and therefore always work in your best interest. I’ve learned we could all use some guidance in this direction.
Here are some strategies I’m sharing with you that I learned from them. Hope they help :
1. Always Hire an Financial Advisor that is a Fiduciary
A fiduciary is an individual who is ethically bound to act in another person’s best interest. This obligates them to work solely for their client and eliminates conflict of interest concerns. It also makes an advisor’s advice more trustworthy.
SmartAssets has a platform that matches you to a local advisor, and all of the financial advisors on there are registered fiduciaries. If your current advisor is not a fiduciary and constantly pushes investment products on you, please look into those who have your back as stated above. It’s always better to have someone that doesn’t have monetary gain to push you in a direction that doesn’t suit you !
2. Don’t Hire the First Advisor you find
While it’s surely tempting to hire the advisor closest to your home or the first one that pops up in a internet search, this decision requires more time. You want to take the time to interview at least a few advisors before picking the perfect match for you.
3. Don’t Choose an Advisor with a different specialty
Some financial advisors specialize in financial planning, while others are best for business owners or those with a high net worth. Some cater to young professionals starting a family. Be sure to do a little investigation to understand an advisor’s strengths and weaknesses before signing up with them.
4. Pick an Advisor that matches your anticipated Strategy
Some advisors may suggest aggressive investments, while others are more conservative. For example, if you prefer to go all in on stocks, an advisor that prefers a steadier route like bonds and index funds, might not be a great match for you.
5. Always Ask about Credentials
Financial advisors are required to pass a test to give investment advice. Ask your advisor about their licenses, tests, and credentials. The advisors tests include the Series 7, and Series 66 or Series 65. Some continue on and become Certified Financial Planners.
6. Very Important – Understand How They are Paid
Some advisors charge you a flat rate no matter what. Others charge a percentage of your assets under their management. Some advisors are paid commissions by mutual funds, which is a serious conflict of interest. If the advisor earns more by ignoring your best interests, do not hire them.
7. Do Not Hire an Advisor on Your Own
Chances are, there are many qualified financial advisors in your area. Asking friends and family isn’t always the best idea especially if they don’t understand the background of the Advisor they picked.
Smart Assets does have a no-cost tool that makes it easy to find the right provider. Handy. You can get matched with up to three local fiduciary investment advisors that have been thoroughly screened for regulatory disclosures and confirmed their licenses.
STOP !!! Before you put your hard earned money into the market, whether it is high risk or lower risk depending on your comfort level, there is a way to have a bit more to invest by getting out of some of your debts. Yes, I said it ! Most all of us have some serious payments hanging over our heads, be it mortgage payments or simply credit card debt.
Therefore, there are simple smart ways to take advantage of a system that can help. I have a FREE ebook that you may want to check out. Comment below if you’d like this. It is absolutely fantastic when it comes to showing how a lay person can help themselves to create wealth from debt. This is something the banks have been using all along with our money ! Click links above to learn more. Time to get even in more ways than one ! Good luck !
