There are a lot of rotten apples in the world and unfortunately, the financial planning industry is no exception. Getting trapped with the wrong advisor might mean wasting a lot of your hard-earned money on fees and introducing yourself to more risk than you're willing to accept. Here are six indicators to look for when searching for a trustworthy advisor.
Your Advisor Has Open Conversations With You
Most investments include some level of risk. Any advisor who attempts to minimize the dangers of investing is doing their client a disservice. A smart advisor will not only discuss risk but will also show you what you stand to earn and lose in various market situations. An advisor who does not withhold any information from their client demonstrates that they are dedicated to your success, whether it’s as simple as helping you manage your bills or as complex as making large investments.
They Explain All Costs Involved
Financial advisors must earn a living, and they can do it in a variety of ways. Some people get paid commissions on the investments they sell. Others are paid a fee based on a percentage of the assets under management. Sometimes advisors even use a combination of the two approaches. No matter what structure your advisor uses, it’s essential that you feel comfortable with the arrangement and that your advisor is entirely transparent and honest about it, both upfront and during the process.
They Care About Your Financial Knowledge
Some advisors like to toss around buzzwords and investing terminology, partly to brag and appear educated. While such individuals may be specialists, that does not make them trustworthy. A smart advisor will not simply try to sell you a particular stock or mutual fund; instead, they will thoroughly explain your alternatives and urge you to learn more about what each one implies.
They Keep You Informed On Your Progress
How irritating and aggravating is it for an investor to be kept in the dark about a new event that might affect their portfolios, such as a stock price shift, a shake-up at a major firm, or an acquisition in an industry that affects companies in the investor's portfolio? By failing to keep the individual informed of key events, the advisor may end up costing the client money. Many advisors only speak with their clientele when they have new products to pitch or are trying to persuade them to invest more money. A respectable advisor encourages you to talk about your investments, examine your performance, and discuss any problems you may have.
They Have Your Goals In Mind
There is no one-size-fits-all method to investing, nor is there a magical universal savings objective that you should aspire to meet by a specific age. Your advisor's role is to listen to your personal ambitions and create a financial plan to help you reach them. If your advisor appears to be aware of these aspirations while providing suggestions, it's an indication that their not just listening but also figuring out what they can do to help you and working with your best interests in mind. Finding a financial advisor is not like hiring a plumber or a landscaper. In an ideal world, your financial advisor will be an expert you turn to for advice at various periods of your life. If anything about your advisor simply doesn't feel right, or if you're not confident raising concerns about the success of your investments, you should make a change. You deserve to be completely confident that you've picked the correct individual for the job.
They Have the Reputation and Qualifications You Want
It is important to understand what qualifications your financial professional has obtained. There is a big difference in having an advisor that can assist you in all aspects of your financial life and in a person that can only sell particular investment products. Financial planning is about first understanding what the client wants to accomplish and then developing appropriate strategies to achieve them. If your financial professional is only licensed to sell insurance products, how will it be possible to offer advice that does not include insurance as the solution? Insurance can be a great financial planning tool, but it needs to be used for the right job, not all jobs. Your financial needs and aspirations change over time and your advisor should be broadly licensed to offer solutions as your needs unfold.
Schedule A Consultation with an Experienced Financial Advisor
We hope that you found the information in this article helpful and informative. However, if you feel like you need more guidance, we’re here to help. Here at Fourth Avenue Financial, our first priority is your overall financial success. We want to help you develop, implement, and monitor a strategy designed to address your individual situation to ensure all your investments are setting you up for a path of financial success. If you are ready to start planning for your financial future, we are here to help. Contact us today at (304) 746 7977 to schedule a meeting with one of our experienced financial advisors or schedule online at https://calendly.com/fourthavenuefinancial/introductory-zoom.
Securities are offered through J.W. Cole Financial, Inc. (JWC) Member FINRA / SIPC. Advisory Services are offered through J.W. Cole Advisors, Inc. (JWCA). Fourth Avenue Financial and JWC/ JWCA are unaffiliated entities.