Choosing The Right Financial Advisor
Before you open your phone book, decide whether or not you need a financial advisor
. If you are unemployed or have no assets you may want to first focus on the basics of personal money management like paying bills and budgeting. If you believe you could benefit from hiring a financial services professional, there are several things you need to consider.
First of all, it is important to know the differences between financial services professionals: insurance agents, fee only planners, financial advisors and brokers. Insurance agents will be able to sell you insurance, annuities and maybe some proprietary mutual funds. Brokers are simply a link between you and the market: they can buy and sell certain instruments for you and earn commission, but they could care less about your financial picture as a whole. There are a couple of types of fee only planners as well: those who charge a fee based on the assets under management and those who charge a fee for creating comprehensive financial plans for their clients. A word of caution: many insurance agents, brokers and even debt relief specialists call themselves financial advisors. Only individuals holding a series 66 license are true financial advisors.
Secondly, you need to verify advisor's credentials before allowing him or her to do any work for you. Start by asking your prospective financial professional how long he or she has been in business, what licenses he or she holds in your state, whether or not he or she has any advanced certifications such as CFP, ChFC or others. Your advisor should have series 7 and 66 licenses along with a Life/Accident/Health license. College education is not necessarily indicative of the level of expertise a financial advisor possesses although a college degree is preferable.
Another important aspect of choosing a financial advisor is analyzing his or her industry affiliations. In simple terms, who does he or she work for? Even independent financial professionals have to be affiliated with a specific broker-dealer to be able to trade securities and with one or more insurance companies to be able to sell insurance products. Be sure to take a quick look at these companies' financial condition and reputation.
You also need to check out his or her office during the first visit. Are you comfortable with how the staff treats you and with how your prospective advisor treats the staff? Does he or she respect confidentiality or are there other clients' files piled up on the floor?
Feel free to ask questions: you are there to interview the financial professional. Ask if he or she has a mission and vision statement, what his or her ideal client is, how often you are supposed to see each other in a given year etc. This process will help you figure out if you're a good fit.
Last but not least, wait for the follow-up. Professional financial advisors will send you home with a little bit of material about them, their company, the services that they offer and some sort of pricing information. They will usually send you a thank you note and call you within a week or so to see if you are ready to start working with them.
While this may seem like a tedious process, in reality it's a very simple way to find a financial advisor that you will enjoy working with.
by: Peter Buffett
Rockstar Makita Suzuki's 2010 ATV Championship Year in Review Flaunt your financial status with property investment! Second Chance Romance Review Secret Method Exposed! Window Installations Can Save Money That Foremost Even Though Budget Hawaii Islands Break Transaction Furthermore Piles Get The Grandest Deals On Hotel Bookings Activities Gastronomic Treats And Air Fares Via Budget-frie You Only Get So Many Chances In Finance And Romance The Foremost Nonetheless Budget 50th Us State Leave Arrangement Another Entities Budget Hotels in Bangalore has more of a chance of finding one available Budget Hotels in Bangalore you can move in and start living your life Pdas Reviews Transformer Oil Purification Machine Zyd, Zn Vacuum Oil Purifier Satellite Direct Tv On Pc Review