Best Practice: Choosing A Financial Advisor
Your financial future depends on the choices you make, including choosing a financial advisor. Finding the time required to manage your finances can be overwhelming. Developing the expertise the understand financial markets, taxation, retirement planning and all the other elements can be even more daunting. Most people turn to a financial advisor as a result. This can happen whether you have already accumulated savings already or are just planning to start.
Choosing your advisor is an important decision that should be weighed carefully. There are many questions to consider. Such as:
Are they knowledgeable about financial history and do they understand the current financial climate?
Having a broad scope of both what the past has meant for the markets, what the future looks like, and what the latest developments are will ensure that your wealth will be set up for success and protected against extenuating circumstances.
Can they really listen to your input to get an accurate picture of your current position and determine your vision for the future?
It is important to ensure that you can connect with your advisor and have your vision be understood. Being able to have a full conversation with a receptive advisor will ensure that your advisor is helping you craft your ideal future.
Are they reputable and trustworthy?
When you are trusting someone with your investments, you are trusting them with your future and your legacy. If an advisor has the trust of other clients and a proven track record of success, that can indicate that they are able to focus on their client’s needs.
What kind of firm do they work for? Can they only sell proprietary products approved by management or is there a broad range of objective choices available?
As outlined here, many advisors may not be making decisions with your investments that are in your best interest. If they are a part of many firms that mandate proprietary products, your investments may not reach the potential they are supposed to and you may not have an advisor who is being careful enough with your future.
Is professionalism an integral part of their practice? What kind of support system is in place to provide well-rounded client service?
The ideal advisor is a specialist. They are able to execute well researched decisions to ensure the success of their clients. They also are supported by a team of specialists in other fields to ensure that they are able to guide you through whatever the future holds with confidence and care.
What kind of products are they licensed to offer?
It is important that your advisor is able to offer a fully balanced portfolio when the time comes. You may not always need to have a widely diverse portfolio but it is often helpful. Having an advisor with the ability to diversify your portfolio will ensure that your covering all the bases you can.
Is there good working chemistry between you and the advisor?
While a seemingly small aspect, understanding and respect is necessary to create and maintain a long-term relationship built on mutual trust. Being able to really relate with your advisor will ensure that they are making decisions in your interest.
Is your advisor transparent about compensation for service?
If your advisor is not going to be straightforward with you regarding how they are compensated, you probably cannot trust them to be straightforward with your own financial security. If they are upfront and clear (and hopefully succeeding when you succeed), then they are working towards building a trust-based relationship, which is key.
What is the track record of the advisor? Can they provide referrals from current satisfied clients?
As previously mentioned, if an advisor has built solid, trusting relationships with other clients that are willing to vouch for them, that can provide you with a clear scope of what your experience is going to be like with them.
If you are currently looking for an advisor, or just evaluating the situation you already have set up, it is worth asking these questions to ensure your future is secure. At the Ramberran Wealth Group, we would love to meet with you and answer any and all questions you may have or provide a second opinion on your current situation.
