With so many alternatives, planning for your financial future and selecting any form of investment can be difficult. Because there are so many various financial services available, it is a good idea to get help from a professional financial counselor.
You don’t want to entrust your financial security to anyone. You want a financial advisor you can trust and who is qualified to provide you with the guidance you need.
You should meet with many financial professionals and ask as many questions as you can. Your financial advisor will be working for you and in your best interests, so choose one who will do it . As a customer, you have the right to ask as many questions as you need to ensure that they are qualified. You should avoid an advisor who develops an attitude because you are asking too many inquiries. A wise financial advisor will recognize that you are looking for sound guidance from an expert and will welcome your questions.
Here are our top three recommendations for finding a financial investment advisor:
1. Determine whether the advisor is a “linked” or “independent” agent. If they are a linked agent, they are obligated to the company for which they work and will only recommend products and services from that company. Even if their products and services are excellent, they may not be appropriate for your needs, yet they will still recommend them because they are unable to recommend items or services from companies other than their own.
A connected agent’s suggestions may be skewed because they can only provide products from the company with which they work. This should not be an issue if that company produces a good product that fulfills your needs. A reputable agent will tell you whether they are a tied agent, but it never hurts to inquire if they don’t.
An independent agent works for and sells products and services from some companies. Even if they have a larger selection of items and services to offer, they may be biased and promote the one that earns them the most commission.
Independent and connected agents both have advantages and disadvantages, and a good, trustworthy advisor will want to do what is best for you, not for himself. You may assess whether their ideas are acceptable for you and your family by conducting research and having a broad idea of what you desire.
2. Discover how the advisor generates money. Because many financial advisors work on commission, they may try to upsell you on more expensive items to boost their earnings. They may also call you when they are attempting to close a transaction rather than following up on your investing strategy.
3. Determine the qualifications of the financial advisor and whether they specialize in a single area or can help you with all your financial concerns. You may need to seek financial advice from another counsel if you find an advisor who specializes in one area but is unable to assist you in other areas. If you have more than one advisor working for you, this can be more expensive. Many financial services are available to assist you with all your financial needs in one location.
These three criteria are the most important to consider when choosing a financial investment advisor. Keep in mind that they will be working for you, so take your time in selecting someone who you believe is qualified for the position.