Know These Points Before Choosing A Financial Planner

Choosing a financial planner is crucial as they advice you everything related to your money, how to handle it, where to invest, how much to save and ways to grow your money. Earlier, before the internet- anyone who had a business and money would just go to an adviser, accountant, lawyer because business was local. Gone are those days. Today, millions of people work with the financial industry without ever meeting face-to-face the people who serve them.

Financial advisers help you to achieve your financial goals – tips to expand your assets or plan your retirement or maybe help you buy you your dream house. Well, here are some tips that will help you in choosing the right financial adviser:

• Qualifications – Check the qualifications before you choose your financial planner. Conduct a research on which field of personal finance he holds a degree and specializes.
• Experience – Choose an adviser who has prior experience counseling individuals on their financial needs.
• What Services He or His Firm Provides – Implicit in this question is also what assistance the adviser will not give you. “Some people are just investment advisers and only provide you advice on your investments,” says Bera. “Other people do comprehensive financial planning around retirement, insurance, estate planning and tax planning.” Go with someone whose offerings suit your needs.
• Association /Professional Membership – Find the credibility of the Financial Adviser’s employer or the professional organization he is associated with.
• Check the Financial Advisers Register – Checking the register will give you a brief history about your advisers, their qualifications and current employment status before you approach them about getting advice. Also Google their name for knowing the clientele and their reviews.
• Beware of market-beating brags – Warren Buffet outperforms the market averages. There aren’t a lot of people like him. If you have an initial meeting with an adviser and you hear predictions of market-beating performance, get up and walk away. No one can safely make such guarantees, and anyone who’s trying may be taking risks that you don’t want to take.
• Financial Adviser’s Fees – Ask the adviser for an estimate of the cost of the advice. Even a rough estimate will give you an idea of what you’ll be paying.
• Basis of recommendation and research: You should know on what basis the financial planner is recommending particular investment or insurance instrument. You should ask if the planner has a research team or he outsources research. This is important because the planner cannot recommend any investment / insurance without studying or knowing the investment / insurance product. Also, you should ask whether your risk profile would be assessed and considered for recommending investment.
• Access to Information – Call your advisor out and ask them to explain the top holdings of the strategies you’re investing in and earnings reports. Your advisor should know or have direct access to this information.

What your financial adviser should be promising is good advice across a range of issues, not just investments. And inside your portfolio, they should be asking you about how many risks you want to take, how long your time horizon is and bragging about their ability to help you achieve your goals while keeping you from losing your shirt when the economy or the markets sag.

latest articles