Choosing Your Financial Advisor

Written by Dan Noyes


With so many financial advisors trying to woo you with their qualifications and experience, how do find one you can trust your finances with? ‘Trust’ isrepparttar keyword here, as you will depend on him/her for your future financial security. A good financial advisor can help you determine which investments are best suited for you, based on your financial goals. He/She will also be able to help you with a savings program to build your assets.

First and foremost, identify your own needs i.e. your risk-tolerance, insurance needs, taxes and whether you want short-term or long-term benefits. Once this is done, choosing a financial advisor becomes easy. Seek references from your friends and get inputs about their own experiences. You then need to interviewrepparttar 134833 advisor and ask him questions about his experience, track record, services provided, investment approach and educational credentials. Gauge your level of comfort withrepparttar 134834 advisor as you are looking for a long-term relationship. Never hesitate to ask whatever is on your mind; however foolishrepparttar 134835 questions may sound. Always remember that it is your money and your future.

Ensure that your financial advisor hasrepparttar 134836 time to meet you frequently, perhaps once every three months and explain everything you need to know. He/She should be able to provide you with a quarterly assessment and advice you on any change in strategies. To get this one-to-one personal advantage, select a smaller firm than a larger one with an exhaustive clientele. Make sure that you choose an advisor who is compensated on a fee-only basis rather than on brokerage commissions. Advisors who work on commissions are obviously placing their own financial gains above your efficient financial management. They may recommend frequent and unnecessary transactions to derive benefits from them.

Questions To Ask Your Financial Manager

Written by Dan Noyes


Choosingrepparttar right financial manager is by farrepparttar 134832 most important investment decision you will make. Depending on your financial needs, it is imperative that you find answers to some important questions, from your financial manager. Given below are some should-be-asked questions.

1. What services do you offer and what are your areas of specialization i.e. do you specialize in retirement planning, investment planning, tax planning estate planning, insurance planning or any others?

2. How many years of experience do you have in offering financial planning advice? Presently, how many clients do you have?

3. Describe your work history inrepparttar 134833 past five years. What financial planning credentials do you hold?

4. What are your educational qualifications and what subject have you specialized in? How can I be sure that your lack of experience inrepparttar 134834 fluctuating market can be compensated with your educational degree?

5. Have you ever managed or owned a business?

6. Can you explain financial jargons in simple terms that I can understand? Can you also explain your investment approach and philosophy in simple terms?

7. Do you have a license or are you registered with an investment firm? If so where?

8. Where is your own money invested? Explainrepparttar 134835 reason why you chose those kinds of investments.

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