Hiring A Financial Advisor? 5 Questions To Help You Make The Best Choice
Hiring an advisor to consult you on growing your savings, diversifying your investments and resolving common money problems can provide you with more confidence and insight to make wise financial decisions. However, there are various types of financial professionals at your disposal, so choosing one that best fits your unique needs can be intimidating.
Listed below are five questions you should ask prospective advisors when narrowing down your options.
1. What type of services do they provide? Financial firms vary in the services they extend, so it’s important to know the scope of their offerings. Some may offer one or two services, such as estate and tax planning. Others might deliver a more comprehensive financial package that includes guidance on investments, retirement planning, taxes and insurance. Determining which amenities you need can be a good first step in choosing the right professional.
2. Which types of credentials do they hold? When you trust a firm or individual with your finances, it’s important to note their qualifications and experience. Once you’ve determined whether to go with an investment advisor, certified financial planner or accountant, research the corresponding licenses and certifications and make sure your professional is registered. Knowing that your advisor maintains the appropriate credentials will afford you more comfort and confidence in accepting their guidance and making financial decisions.
3. What is their fee structure? The cost of hiring a financial professional varies by many factors, so it’s important to ask about fee structures and compensation. Some advisors may adhere to a flat fee structure, while others work on commission or require a percentage of portfolio earnings. Understanding how their fees are assessed can help you narrow down the most cost-effective option for your needs.
4. How accessible is your advisor? Everyone has different expectations of how often they will communicate with their advisor. Some might prefer to only speak with their professional on a quarterly basis, while others want the freedom to contact advisors regularly. Setting expectations about the frequency of contact and whether you will communicate in-person or through writing can help you avoid confusion and disappointment.
5. How comfortable are you with your professional? There are several legal, financial and insurance considerations you should weigh when comparing prospective advisors, but in the end, it’s important to also go with your gut. Hiring an advisor like Landsberg Bennett Private Wealth Management that is highly qualified and experienced is important, but it’s equally critical that you’re comfortable with your professional’s approach to financial management.