Case Study: My Experience With Finances

Family Vest: Ultimate Guide to Choosing a Financial Advisor

Whether you’re currently looking for a financial advisor or you already have one, it is important to find a professional who can give you a sound advice and someone who can ensure that your best financial interests are protected. Why do people need a financial advisor? Unlike a salesperson who promotes products, a financial advisor is an expert in giving consultancy services to help their clients achieve their short-term and long-term financial goals except for brokers. What are the important considerations when choosing a financial advisor?

Do financial advisors have a specialization? Financial advisors may come in different types such as investment advisors, brokers, and financial planners. Investment advisors usually give advice on securities like stocks, mutual funds, and bonds. Investment managers are also referred to as “wealth advisor”, “portfolio manager”, “investment manager”, “wealth manager”, and “asset manager”. Brokers work in the business of buy and sell on behalf of customers. Brokers are also referred to as financial consultants, financial advisors, stockbrokers, wealth managers, and investment consultants.

On the other hand, a financial planner manages and looks on the whole financial picture of clients, including tax planning, real estate, retirement, debt management and insurance needs to help them establish an effective financial plan. How would you choose a financial planner? They can also provide professional advice as an RIA, subjected to fiduciaries, or a broker selling products. According to the CFP Board, a financial planner must always prioritize the best interest of the client ahead of his own interest because he owes a duty of care as to a fiduciary.

Make sure to look for a Certified Financial Planner or CFP. Their pay depends on a commission basis rather than flat or hourly rate. It is important to consider checking the code of ethics a financial advisor adheres to. If you are searching for a financial planner, or you’re currently evaluating your current financial advisor, it is important to ask this question, “Are you a fee-only financial planner who acts as a fiduciary one hundred percent of the time?”. Fee-based financial advisors might only sell products instead of acting as fiduciary.

Once you selected a financial advisor you prefer, get everything in writing, indicating that the one your hire is a fee-only advisor who will act as a financial fiduciary one hundred percent of the time, and will fully disclose or tell you any conflicts of interest. By indicating “fee-only” on the contract, this will help eliminate or prevent your financial advisor selling you products because a fiduciary will always give a professional financial advice in your best interest. Now, you can achieve your financial goals by hiring a fiduciary financial planner from Family Vest.

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