Regardless if you already have a financial planner or advisor, or you’re now searching for one, you have to always prioritize your best financial interest through the help of a professional. How can a financial advisor help you? Unlike a salesperson who promotes products, a financial advisor is an expert in giving consultancy services to help their clients achieve their short-term and long-term financial goals except for brokers. How can you find the right person to help you in achieving your financial goals?
Do financial advisors have a specialization? When it comes to the different specialization of financial advisors, they 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 deal in the business of buy and sell on behalf of the customers. Brokers are also called financial consultants, stockbrokers, wealth managers, financial advisors, and investment consultants.
A financial planner looks at the whole financial picture, which includes tax planning, real estate, and retirement, as well as debt management and insurance needs to help you establish an effective financial plan. Why choose a financial planner? Financial planners also provide RIA investment advice, subjected to fiduciary duties, or they can act like brokers to sell 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.
Make sure to look for a Certified Financial Planner or CFP. Their pay is usually on a commission basis instead of an hourly or flat rate. It is crucial to consider reviewing the code of ethics a financial advisor adheres to. If you are searching for a financial planner, or you’re currently evaluating your current financial advisor, it is important to ask this question, “Are you a fee-only financial planner who acts as a fiduciary one hundred percent of the time?”. Fee-based financial advisors might only sell products instead of acting as fiduciary.
Once you have chosen a financial advisor you like to hire, get everything in writing, indicate that your financial advisor is a fee-only who will act as a financial fiduciary one hundred percent of the time, and will fully tell you any conflicts of interest. By indicating “fee-only” on the contract, this will help eliminate or prevent your financial advisor selling you products because a fiduciary will always give a professional financial advice in your best interest. Now, you can achieve your financial goals by hiring a fiduciary financial planner from Family Vest.