The service model of the financial industry is backwards. Firms often exclude clients who need financial help the most by refusing to work with individuals with asset balances below a certain threshold. The remaining investment options available to these individuals may be expensive, difficult to understand, or recommended by advisors not acting in the client’s best interest. Unfortunately, this can result in bad outcomes for people who really need help.
People are often intimidated by the process of choosing a financial planner because of the complexity and hidden fees. The truth is, it can be more straightforward and less costly than you might think.
Here are some attributes to consider when hiring an advisor:
Fiduciary: A fiduciary must operate with the client’s best interest in mind and disclose any conflicts of interest that exist. Advisors who aren’t fiduciaries operate under the suitability standard and only must ensure the investment being sold is “suitable” for the client.
Fee Only: A “fee-only” advisory relationship means that the planner does not receive commissions. You’ll sleep better at night knowing your advisor made decisions that are in your best interest rather than ones which earned them a trip to Hawaii!
CFP® Professional: A Certified Financial Planner™ professional has to complete some of the highest levels of training along with demonstrating comprehensive knowledge and the highest ethical standards.
Transparent Pricing: When you buy something it’s always nice to know the real cost. Unfortunately in the financial industry, understanding what your advisor charges can be a difficult task. We like to put our pricing right on our homepage.
While this may not be a comprehensive list of what to look for in an advisor, it’s a good place to start. Checking off these attributes will narrow your list of potential advisors. Once your list is narrowed down, review each advisor’s investment philosophy and determine if they are a good fit for you personally. We’d recommend an advisor with a long-term, passive approach to investing.
RhineVest offers a complimentary call to determine if hiring an advisor is right for you. We welcome the chance to get to know you and talk through your own unique needs.
RhineVest is a fee-only, registered investment advisor providing fiduciary advice and intelligent financial management for everyone. You get personal access to both a Certified Financial Planner™ professional and an easy-to-use digital platform to track all of your accounts.
