Here are 5 top tips for choosing the right person to help you manage your financial life:
1) Ask Questions. When you’re looking for a financial advisor, you want to know how they do their business. Your questions will help start some important conversations.
How long have they have been in practice? What are their credentials?
What type of clients have they had?
As an advisor, do they have a specialty? Insurance or tax planning? Estate and retirement planning?
How do they keep up with the changing financial landscape?
What services do they offer?
You can never ask enough questions.
2) Get the Right Fit. Your financial advisor plays a significant role in your life. It’s important that you feel good about them.
I suggest you align yourself with an advisor who tends to think the way you do. For example, if you’re deliberate in your decision making, advice from an aggressive planner might often sound rash to you. Avoid this kind of situation by taking time now to get to know this person.
I’ve been working as a financial advisor for more than 20 years and I feel very comfortable having this conversation. I like when prospective clients ask me what I specialize in. I tell them about the array of services I offer, how they range from tax preparation on a very basic level to sophisticated retirement planning for the affluent. I’m confident that I can rise to the challenge that comes with any client who contacts me. If, however, we aren’t a good fit, I will let them know.
3) Ask For a Referral. Ask a friend, business associate, or a family member. Who do they use? I’m happy to say that I’ve built my entire practice on referrals from satisfied clients.
4) Compensation. Independent advisors have different pricing structures. It’s important to understand how the advisor is paid.
For example, most of my work is fee based. That means I receive a monthly fee for managing money and for planning with my clients. For some of my work, I get paid a commission based on the type of investment and total money invested.
When interviewing a prospective financial advisor, you want to ask about their fees and commissions.
5) Trust the process. It’s important to do your homework. But eventually you need to make a decision. I encourage my clients to do relevant research online, but after a time this can be overwhelming. At some point you must stop and trust your team and make the decision. Move on with your life. Don’t be a victim of paralysis by analysis.
Listen below to Stu and Win damon of WNBP.com review this topic on radio 1450 AM Newburyport
Advisory services offered through LPL Financial, a Registered Investment Advisor. Securities Offered through LPL Financial, Member FINRA/SIPC