Financial advisors are there to help you get into a better financial position than you are currently in. They work to improve your investments and help you look at the big picture and align with your life goals. That being said, it can be intimidating to spend money on an advisor when you may not feel financially stable — especially when you’re spending money trying to protect your finances.
What do financial advisors do?
Financial advisors assess the financial needs of their clients. They can help with investments, tax information, retirement planning, and insurance decisions. Financial advisors help with short- and long-term goals and recommend plans based on what the client wants. While not everyone chooses to work with an advisor, they are a great way to help ensure financial success.
Finding a trusted advisor is one of the first steps to take when considering your overall financial goals.
What do I need to know about financial advisors?
Financial advisors should give you peace of mind, not add stress. Many Americans find that financial advisors may not act in their best interest, which makes it hard to find one you can trust. The best way to find a financial advisor who you trust and can walk you through anything from monthly budgeting to long-term financial planning is to do your research and know what questions to ask.
Finding a financial advisor
Finding a financial advisor that is the right fit for you may take some research. Because you are investing in someone to take care of your money, the process may take more than a quick internet search for advisors in your area. Generally, you will work with an advisor for many years, so make sure you understand the different services they offer, that the advisor has reputable credentials, understand how the financial advisor will be compensated, verify credentials and check for complaints, and educate yourself on fraud.
For more information on how to find the best financial advisor, read our article here.
What is an average financial advisor fee?
Average financial advisors cost vary, but generally, they operate on a handful of different payment options. Different methods of charging clients include a percentage of assets under management (AUM), hourly rate, retainer fee, and per-plan fee. Generally, if you don’t consider yourself to have complicated finances, a fee-only advisor will be in your best interests.
Budget Better to Build Bigger | Data Driven Investor
Even the experts admit they are not perfect. On a scale of 1 to 10 for their budgeting, both Anthony Copeman and Del…
Fee-only advisors are paid by the client and “ does not receive a commission or other payment from an employer or by selling financial products.” They have fewer conflicts of interest because they don’t have an incentive to push products or make unreasonable investments. You can find a fee-only financial advisor using the National Association of Personal Financial Advisors (NAPFA).
Finding a fiduciary advisor
Fiduciary advisors offer many benefits to their clients. A fiduciary advisor is someone who is legally and ethically obligated to put their clients first. There are a number of ways to determine if your advisor is a fiduciary. Ask them the following questions:
- Do you receive any type of compensation besides what I’m paying you?
- What licenses, credentials, or other certifications do you have?
- Are you dual-registered?
- What are your areas of expertise?
- Have you ever been cited by a professional or regulatory organization for disciplinary reasons?
- Are you a fiduciary? If so, can I see proof of your credentials?
It’s important to have open communication and trust between yourself and your advisor. A fiduciary will work in your best interest, so it’s worth it to take the time to find one.
So, are financial advisors worth the cost?
In most cases, it is worth the cost if you find a trusted, ethical advisor. Building a relationship with a financial advisor will help to grow your investments and reach your monetary goals. Advisors should work with you to make your life easier and help ensure financial success in the long run. Find a trusted financial advisor today and start reaching your goals.
100% free consumer service
Originally published at https://seniorfinanceadvisor.com.