So you have finally decided to see a reputable advisor. This is an important decision to make, but don’t know where to start. Financial information can be infinite, and starting can be intimidating and overwhelming. You need to know how to find a reputable financial advisor out there.
- Choose one type of advisor:
Almost anyone can treat themselves as financial advisor. Advisors come actually in three basic types especially like how they are paid:
Fee-only: This advisor is highly recommended for extensive financial planning and asset management. They represent the best interests of their clients.
Fee-based: This financial advisor is relatively new to the financial world. They are associated with a broker and hold a license to offer insurance or investments for commissions.
Commission based: They are often hiredby huge financial institutions to offer financial products such as annuities, mutual funds and insurance.
- Determine how much help is required:
Hourly consultation: The best option for you on how to find a reputable financial advisor is someone that offers hourly consultation for questions you like to ask such as selling a business, buying a house, or going back to school.
Extensive financial planning: This professional is required to make a roadmap on where you want to go with your financial goals. They charge a flat fee or hourly rate for the advices they give to you.
Asset management: This advisor will work with you on a long-term basis. They invest and manage your money, making more continuous extensive financial planning all throughout your life.
- What to look for in an advisor:
Credentials: He must have several licenses and certifications. He must have extensive years of experience, taken a training course, and passed the exam to become a Certified Financial Planner.
Ethics: Check if the advisor has any legal or ethical complaints against him like unpaid liens, bankruptcies, criminal charges and investigations.
Experience: Verify how long they have been in service and what were their previous experiences. They must have handled real-life financial situations.
Fit: This is the most important as you need to know how to find a reputable financial advisor that you can like and trust. You need them to know most of your personal details. Shop around for the best financial advisor that you feel you are comfortable with.