The Ultimate Guide to Funds

Family Vest: Know the Right Questions to Ask Your Financial Advisor

Whether you’re currently looking for a financial advisor or you already have one, it is important to find a professional who can give you a sound advice and someone who can ensure that your best financial interests are protected. Why do you need financial advisor? A financial advisor can help you in directing your money and giving you a sound advice to achieve your financial goals. What are the important considerations when choosing a financial advisor?

Do financial advisors have a specialization? Financial advisors may come in different types such as investment advisors, brokers, and financial planners. Investment advisors give advice on securities including stocks, mutual funds, and bonds. The different terms used referring to investment advisors include “wealth manager”, “wealth advisor”, “portfolio manager”, “investment manager”, and “asset manager”. Brokers deal in the business of buy and sell on behalf of the customers. Brokers are also referred to as financial consultants, financial advisors, stockbrokers, wealth managers, and investment consultants.

On the other hand, a financial planner manages and looks on the whole financial picture of clients, including tax planning, real estate, retirement, debt management and insurance needs to help them establish an effective financial plan. How would you choose a financial planner? They can also provide professional advice as an RIA, subjected to fiduciaries, or a broker selling 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 depends on a commission basis rather than flat or hourly rate. It is important to consider checking the code of ethics a financial advisor adheres to. Never miss asking this important question when looking for a financial planner or advisor or you’re evaluating a current one, “Are you a fee-only advisor who acts as a fiduciary one hundred percent of the time?”. Fee-based financial advisors might sell you products instead of dealing with you as a professional fiduciary.

It is important to put in writing that you are hiring a fee-only financial advisor who acts as a financial fiduciary one hundred percent of the time and that they will fully disclose or 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. With Family Vest, you are 100% sure that your financial best interest is always a priority.

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