Who is a financial advisor?
A financial advisor is an investment professional who is an expert in the management of your savings and other investment related issues. They help you draw up investment plans, select the best investment alternative among the pool of available choices and enable you to achieve your wealth-related goals.
Why to consult financial advisor?
Ever tried to fly your own aircraft? Some of you might have yes as an answer supported by years of intense training and aeroplane flying experience. Managing your wealth could be the same as flying an avion.
If you know how to fly it, you’d be in the clouds, but if you don’t have your life at high risk, so letting the pilot handle the yokes is advisable. Likewise, if you lack the necessary investment management skills & knowledge you should consider a financial planner.
In the ever-changing market, there are many changes; most individuals are unable to understand the dynamics that usually cause investors a major loss.
Following are the list of factors that you should consider before appointing a financial advisor.
- Decide whether you need a financial advisor
- It is always a good thing to consider a financial advisor but the advice usually carries a brokerage or commission. This decision normally depends on the knowledge, education and other factors related to the investor. You may skip the option of hiring a financial advisor if you have a strong knowledge of the finance fields and generally keep yourself updated. Otherwise considering a financial adviser is highly recommended.
- Find a Reputable Advisor
You must check its reputation, feedback & reviews of past and current clients before consulting a financial advisor. In the markets, there are many financial advisory firms with a good reputation and a loyal client base that makes your investment safer.
Past performance of the financial advisor
Before you invest your hard earned money, you should be aware of the financial adviser’s past tracking records. A lot of people are shy to ask for proof that their financial planner actually has a successful account management track record.
The Education Level & Certifications of the financial planner
The government has various bodies of certification & education that skeptically check the financial planner’s competency. Such certifications are an assurance that the individual to whom you refer is a genuine expert in investment fields and has a better command over understanding market dynamics.
- Know when to consult a new advisor
There could be many possible situations where instead of the current one you might want to switch to a new financial planner. A good consultant is one that understands your investment needs, has multiple conversations with you, discusses your long-term goals, and evaluates your plan. If you feel your advisor can not serve your expectations, give good suggestions or are unable to help you achieve your investment goals, consider a new business planner.