A good finance advisor can make or break an individuals’ experiences with investment firms. While our investments are out of our immediate control, a relationship with a finance advisor is chosen; we can keep the relationship going or we can move our money for someone else to manage. This makes it extremely important to choose a good financial advisor who will value relationships with clients as much as investing their funds for the future. This process involves searching and vetting finance advisors carefully. There are many ways to determine whether or not a financial advisor is right for you. Here are the best five ways to pick a good finance advisor.
The first way to find a good finance advisor is to get referrals from friends and family. However, first determine whether or not these friends and family have similar financial needs as yours. Ask for referrals from people who are in the same stage of life and even have similar investment goals. Once you have a list of possibilities, it is really easy to get some information online about these candidates, through sites like LinkedIn and the Financial Planning Association.
Another way to find out which financial advisor is right for you is to make appointments to interview each of the referrals on your list. These appointments can help customers determine whether financial planners are interested in clients or in their own investment strategies and charging fees. Each meeting should cover how financial planners can help meet their clients’ needs, including financial background, goals, wealth management, retirement, and future plans. This is an ideal time for clients to ask about finance advisors’ approach to investments. Does the finance advisor prefer to trade stocks, take on high risk investments, play it safe, or invest in long-term plans?
The third consideration to choosing a finance advisor is determining how much contact is possible in your relationship. Some financial planners see their clients once a year after an initial planning meeting, while others like to see their clients every quarter. Clients may have different expectations, wanting to keep in touch at least once a month to check on their investment strategies. How much support is offered can be an important consideration when choosing a financial advisor. On a related note, the fourth consideration involves whether the financial advisor works individually or on a team. Some advisors meet with their clients once a year or so, and then have assistants talk with their clients on a more regular basis. Some clients may prefer the team approach, while others prefer one-on-one.
Finally, it is essential for clients to determine how much financial advisors will charge for services. There may be a wide range of fees that a financial advisor may charge. These can include an initial planning fee, an annual fee, a percentage for assets that the advisor manages, and money they make for selling specific products to their clients. These charges can add up over time, and clients need to decide if this will be worth it.