75 percent of UK adults claim that independent financial advice is too “expensive”.
These people don’t realize that great financial advisors are worth their weight in gold. The right financial advice is what you need to get out of debt. Also, you need professional help to learn how to pick low-risk investments with a high ROI.
So, how do you find the right financial advisor?
Here are the seven things to check.
1. Specify Your Financial Planning Needs
Most people make the mistake of assuming that all financial advisors offer the same services. Yet, this isn’t the case as there are different types of financial advisors serving different niches. To know the right personal financial advisor to hire, you must clarify your needs.
Review these services offered by financial advisors to pick a category that matches your needs.
Financial Planning
Financial advisors in this category aim to guide you on how to design your financial life. They’ll educate you on how to create a budget and stick to it. These advisors will teach you how to save money and the importance of an emergency fund.
Also, they’ll share effective debt repayment strategies and help you implement them.
Investment Advisory Services
A financial advisor in this area will guide you in making sound investment decisions. They’ll educate you on various investment opportunities such as securities and real estate. Also, this financial advisor will teach you how to diversify your portfolio.
Retirement Income Planning
To enjoy your golden years, you need to seek professional retirement income planning. Get pension advice today to learn how to manage your finances best. You want to learn how to budget your money during retirement to avoid cash problems.
Once, you review these service areas, it’s easy to decide which financial advisor to hire.
2. Check Credentials
Today, there are many self-proclaimed financial advisors without any specific training or educational qualifications. Most of these people gain popularity by publishing books and hosting financial planning seminars. Unfortunately, these things don’t qualify these people to be financial advisors.
Most of these people are scam artists who’ll end up running away with your money. To mitigate this risk, check the educational credential of a given financial advisor. You want to choose a highly educated and certified financial advisor.
An advisor you can trust to provide sound financial advice that suits your best interests.
3. Review Financial Advisors’ Compensation Options
Before hiring a financial advisor, find out how they’re compensated for their services. Your best bet is a financial advisor who works on a fixed financial basis. The objective is to know beforehand how much a financial advisor will charge, regardless of investment performance.
The advisor doesn’t have any ulterior motives when recommending investments with this fee option. They don’t charge you any fees when you sell or buy different financial instruments. You can trust this financial advisor to always look after your best interests.
4. Ask for References
To get insights into how a given financial advisor operates, seek references from other people. You want to know how other clients review the services of this financial advisor. The idea is to know whether you can trust them always to put your best interest first.
You’ll discover that the best financial advisors always put their clients first. These financial advisors have outstanding track records. They’ve helped thousands of people get out of debt and achieve financial freedom.
5. Check Experience
Having the right educational qualifications is only half the equation when looking for a financial advisor. The other half is looking for an independent financial advisor who has been in this industry for several years. An advisor who understands how to deal with different types of people.
You want to engage an independent financial advisor who knows the common money problems people face. These are things that make it hard for people to save money and get out of debt. Things that make people struggle to budget despite knowing the importance of budgeting.
Also, look for an experienced financial advisor who’ll help you understand your money personality. You want to learn how you’re sabotaging your financial goals and how to stop.
6. Only Deal with Licensed Financial Advisors
In this era of self-proclaimed financial advisors, most people forget to check their licensing. They assume as long as the right “expertise” licensing doesn’t matter. Unfortunately, you’re risking your money by choosing an unlicensed financial advisor.
This advisor has no legal obligation to put your best interests first. Also, this advisor is likely to disregard all government regulations when offering financial services.
To protect your money, only deal with a licensed financial advisor.
7. Hire an Empathetic Financial Advisor
Most people tend to be too harsh with themselves when they make unsound financial decisions. They feel they’re too stupid and they’ll never learn how to manage their money. Sadly, too much self-criticism only leads to more financial sabotage and woes.
These people know they should save money, yet they struggle to do it. They know they need to start an emergency fund, yet they never do it. If you’re one of these people, you need to find an independent financial advisor who understands your struggles.
An empathetic financial advisor who’ll guide you on how to let go of past financial mistakes. An advisor who’ll help you understand how emotions dictate your financial decisions. The idea is to learn how to manage your emotions and improve your financial wellbeing.
Achieve Financial Freedom by Seeking Professional Help
To learn how to manage your money best and grow it, seek professional financial advice. Rely on the above things to find the best financial advisors. You want to hire a certified and licensed financial advisor.
Also, look for an empathetic financial advisor who understands your financial pains.
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