The best financial advisors are those who can provide you with financial solutions that would work well for your goals. So how do you find the best financial advisor to work with? There are actually many things that you should consider when looking for an advisor.
The first thing that you should consider is their minimum balance. The best one for you may not be the best one for your best friend. However, if you do not know what you want and need, then you will also not know which financial advice to get from. If you are an extremely high net worth person, recommend that you read on how to locate a financial adviser for people with more than $10 million in personal capital.
Second, you should look for people with experience. The best financial advisors are those who have a long track record of successfully working with hundreds, even thousands of clients. Robo-advisors, on the other hand, have minimal or no experience at all in financial advising. You can tell a lot about a robo-advisor by looking at the website, but beware of fly-by-night companies that want to sell you their services.
Third, you should consider how you want to achieve your wealth planning goals. If you have a particular plan in mind, you should consider how to make it realistic and achievable. Are you planning to give up your regular job to work full-time at home with your wealth planning, or are you hoping to eventually turn that dream into a reality? When you know how to best access your plans, you will be able to tell the best financial advisors which plans will work best for you.
Fourth, you should consider the experience of your personal financial advisors. The average lifespan of inexperienced wealth managers is just two years. On the other hand, most seasoned wealth advising experts can see their clients through three decades of marriage, multiple bankruptcies, and multiple business ventures. Therefore, if you plan on working with your advisors for decades, you are better off working with wealth managers with decades of practical experience.
Fifth, you should only work with licensed, independent brokers. Brokers from stock broking firms may not actually have fiduciary responsibilities. The average human financial advisor is required to have proper conflicts of interest and to use quality, unbiased investment products in his or her advising.
Sixth, you should seek a fee structure that matches your financial objectives. Some financial planners offer a variety of investment options for their customers. If your goal is simply to reduce your current financial worries and create a “cash buffer,” you should consider a fee structure that charges a flat fee for both short-term and long-term investments. Otherwise, you should seek a fee structure that offers a diversification of asset classes, and low fees for different types of investing. For example, some firms will charge a fee for all of the financial advice they provide, but will only provide their services in either penny stocks or greater priced stocks.
Seventh, you should seek out testimonials and referrals from other financial advisors and your own peers in the business. Those who have successfully worked with your specific investment management firm will be more likely to recommend it to you. Additionally, your advisor’s peers are likely to have firsthand experience with additional aspects of your investment management plan. This additional information will help you make an informed decision about your own financial planning needs. Finally, it will give you more confidence in the adv2o services you are currently utilizing.