If you think you need help managing your money, it might be time to look into a financial advisor. The first thing you should know is that many Americans need help learning the financial ropes, and getting guidance from a professional can help save you thousands of dollars per year. So, it’s never a bad idea to seek out help if you think you need it. A financial advisor can offer many services to you, so continue reading here for more information.
Sometimes, finding a good financial advisor can be tricky. You want to find someone who understands your goals and can really help customize your short and long term objectives. Here are some of the things to consider when choosing a financial advisor.
Think About What You Need Help With
Before you start speaking with a financial advisor, it’s important to figure out what you actually want help with. Your advisor can often help guide you, but you’ll need to be able to explain your needs first, or at least articulate what you’re struggling with. You could need comprehensive financial planning, or you might need help with just one aspect of your finances — like retirement planning.
Financial advisors can help establish estate planning, retirement funds, college funds, and more. They can also help clients aggressively tackle debt or work through their taxes. In order to find a financial advisor that can help with exactly what you need, you’ll need to determine what you’re looking for first.
Decide How Much You’re Willing to Pay
Financial advisors offer many different fee structures, which means that their services are much more accessible to clients with varying financial means. There are two basic types of financial advisors. The first are commission only, which generally receive a portion of whatever you’re investing. The other type of financial advisors are fee-based. They usually charge you a fee based on the total amount of the assets they are managing for you, but they could also charge by the hour or have their own fee plans or subscriptions.
Ake sure you chat with potential financial advisors about their fee structures to make sure that they align with your goals and financial means.
Some Questions to Ask a Potential Financial Advisor
If you’ve never worked with a financial advisor before, it might seem daunting. Here are some questions that you should ask to make sure that they are the right financial advisor for you:
You want to gauge their answers, because overall you want a financial advisor who is going to make sure that you also understand what is happening with your own finances. They should share the same philosophies about managing money and feel passionately about helping you work toward your goals. It’s not just a matter of whether they are a qualified financial advisor, but whether their methods align with your goals.
What Can a Financial Advisor Do for Me
A financial advisor isn’t just someone who manages your investments. Believe it or not, there are any reasons to seek out a financial advisor. They can create personalized financial plans for clients that help them achieve a whole range of goals, some of which don’t have to do with investing in the stock market at all.
Financial advisors can be a huge asset, and you don’t need to be wealthy to take advantage of their services. Whether you are tackling debt or looking for help with tax strategies, here are some of the ways that you can benefit from working with a financial advisor:
Creating a Financial Plan
When you first meet with a financial advisor, they are going to walk you through a questionnaire of sorts. Then they’ll compile everything you tell them into a comprehensive financial plan, which is basically a road map to help guide you throughout your entire financial future. It’ll lay out where you are now, and show you how to get to where you want to be. It will dive into everything from your risk tolerance to retirement goals to estate planning and your family situation.
The plan will have best and worst case scenarios for your retirement situation, as well as steps to take to set you up for the most guaranteed success. Basically, you’ll be able to see your entire financial roadmap laid out before you, so that you can always make the most informed decisions as new scenarios arise.
Navigate Tax Strategies
Another great way that your financial advisor can help you is by guiding you through tax strategies. No matter what your goals are, there are many ways to make sure that you are navigating tax strategy in such a way that it helps set you up for success in the future. By talking through your present and future goals, and investment strategies, your financial advisor can help you figure out how leverage the best tax situation.
Manage Your Investments
This is what most people expect a financial advisor to be able to do. But, whether or not you want them to actively manage your portfolio, they can help make sure that it is the correct, balanced portfolio for your needs and goals. Market conditions are constantly changing, which may require you to adjust your portfolio accordingly — whether that’s by rebalancing, revisiting your risk tolerance, or taking advantage of different tax opportunities. Your financial advisor can make sure that your investment portfolios are continuously optimized toward your future goals, and you understand how and why decisions are being made along the way.
*
Be the first to comment.