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 you need financial advisor? A financial advisor can help you in directing your money and giving you a sound advice to achieve your financial goals. How can you find the right person to help you in achieving your financial goals?
Do financial advisors have a specialization? The different types of financial advisors include brokers, investment advisors, and financial planners. Investment advisors give advice on securities including stocks, mutual funds, and bonds. They are also called as “wealth advisor”, “investment manager”, “wealth manager”, “portfolio manager”, and “asset manager”. Brokers work in the business of buy and sell on behalf of customers. Brokers are also commonly known as stockbrokers, wealth managers, financial consultants, financial advisors, and investment consultants.
On the other hand, financial planners manage and look on the overall financial aspect of their clients such as real estate, tax planning, retirement, insurance needs, and debt management so they can establish an effective and long-term financial plan. Why 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.
It is important to hire a Certified Financial Planner or CFP. Their pay is usually on a commission basis instead of an hourly or flat rate. It is important to consider checking the code of ethics a financial advisor adheres to. Never miss asking this important question when looking for a financial planner or advisor or you’re evaluating a current one, “Are you a fee-only advisor who acts as a fiduciary one hundred percent of the time?”. Fee-based financial advisors might only sell products instead of acting as fiduciary.
It is important to put in writing that you are hiring a fee-only financial advisor who acts as a financial fiduciary one hundred percent of the time and that they will fully disclose or tell you any conflicts of interest. Doing this will ensure that they will give a financial advisor for your best interest. Now, you can achieve your financial goals by hiring a fiduciary financial planner from Family Vest.