If you are considering finding a suitable financial advisor, it is vital to do some research and analysis in order to find the best person or company that can satisfy your own needs. The following are some steps recommended which may offer you a helping hand.
Learn About Different Financial Service Offerings
Different persons or institutions may provide various services. For instance, some advisors offer only investment management without financial planning services or portfolio recommendation. Others may provide retirement planning but no investment advice. Before you start searching, make sure you understand the difference of those services and consider which type of financial suggestion you actually need.
Make Clear of the Fees
Hiring a financial advisor can be expensive. You may first get a general idea of your asset value and how much money you are going to use for investment, saving or retirement plans. Also, you have to know the different ways the planner or advisor will be paid and decide which one works best for you. Generally, there are four most common types of fees: asset-based fees, hourly-based fees, flat annual fees and commissions (investment mainly). Calculate each type of the cost to see if the fees are suitable according to your own economic situation. Make sure the fees charged will be worthwhile.
Check the Credentials
Once you have found a potential advisor, you will be unwilling to find an unqualified person who only has a title with no experience or proper financial designation. To find an appropriate planner or advisor with reliable credentials, you can look for someone that has certifications like CPA, CFP or CFA. You may also search the advisor’s information online to find out if he or she has any complaints or testimonials. If you are still not sure whether an advisor is reliable, you can check his/her records at the SEC, FINRA or other organizations the advisor is associated with. It is even better to find the advisor’s previous clients who have similar financial goals or needs and have a talk with them.
Select a Fiduciary Financial Advisor
Fiduciary financial advisors are mostly regarded as the best kind of planners or advisors , for they are required to put your interest as the priority. This kind of advisors tends to have fewer interest conflicts and usually maintain a good relationship of trust with the clients.
Finding the best financial advisor takes time and effort, but it will be worthwhile to do so because your quality of life and financial success can be greatly ensured.