A financial advisor can be an enormous help to many people who are trying to establish financial goals for themselves. Having a financial advisor on your side can help you set goals, draw out plans to achieve them, and then continue to grow your savings through a variety of different avenues. There are many different types of financial advisors out there that are willing to help you. Here are some qualities you should look for in a financial advisor to help you make the right decision and put you on the right track towards your financial goals.
Background
What is the advisor’s background working as a financial consultant? A lot of people claim that they are financial advisors without having any real experience or training to qualify them as one. The first thing you want to do before hiring someone as your financial advisor is research them and their background to ensure you are not making the wrong choice. Educate yourself on the advisors you are considering and you will be better prepared to make the right decision and more aware of what kind of relationship you and your advisor will have.
Being A Fiduciary
If the financial advisor you are considering is not a fiduciary, then you may want to consider looking somewhere else for help. A fiduciary is someone who could have a legal or ethical bond to put your best interests first. In this case it the fiduciary would have to put the interests of you and your goals first when making a decision about your finances. Fiduciaries are not motivated to make financial decisions based on commission or sales. There is an extra layer of trust that is established if your financial advisor is also a fiduciary.
Expenses
Another important question to ask your financial advisor is what their fee is for their services. Usually, financial advisors can charge you for their services in one out of three ways. Hourly is the first, a fixed rate or flat fee is another, and the third is charging you for the number of assets that they are managing for you. Whichever way they choose to bill you, you should be aware of how much you are paying for their services and if it is worth it to work with them.