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Have you started thinking about retirement? Do you have money set aside to support your post-work years? Do you know if you live in a country that tends to offer strong pension and retirement plans?
Unfortunately, far too many working people aren’t thinking ahead. They may not realize that their money isn’t doing much for them sitting in a savings account or that the retirement support their parents had is a thing of the past.
All of this to say, it’s time to start thinking about choosing a financial advisor. We don’t expect you to become a wiz at putting together financial plans overnight, but there are people out there who can do that for you.
How can you make sure that you’ve got the best financial advisor for you? Read on for seven tips.
- Stop Putting Off Financial Planning
The most important tip we can offer here? Stop putting off financial planning. More specifically, stop delaying the process of finding a financial advisor.
There are a lot of reasons why you should start planning for your future now, even if you’re in your twenties. The earlier you start, the less risky it is to make bigger moves and grow your assets through investments. Plus, you’re more likely to enjoy an early retirement if you prepare well decades in advance.
- Get a Fiduciary If Applicable
If you’re looking for a financial advisor in the United States, we need to talk about fiduciaries. A fiduciary is a specific type of financial advisor. They make up a small percentage of American financial advisors and, whenever possible, they’re the ones that you want to work with.
What is a fiduciary? A fiduciary is someone who only acts in your best interest rather than making choices that benefit them more than they benefit you. A fiduciary isn’t allowed to earn a commission on different programs or products, which means that they aren’t going to recommend anything for personal gain.
- Work With Fee-Only Advisors
Not all countries offer the designation of “fiduciary,” so what do you do if you live in a fiduciary-free country? You look for a fee-only financial advisor.
Fee-only advisors operate on similar principles as fiduciaries. Fee-only means that they are compensated by receiving a set percentage of your account size, which means that their personal gain is your personal gain. In other words, the only thing they are incentivized to do for you is to grow your assets because that’s the only way that they’re making any money.
- Ask for Testimonials
Don’t just take a financial advisor’s word for it that they’re going to make a positive difference in your life. They have to say that or they wouldn’t gain any new clients. Instead, look at reviews and ask for testimonials.
Online reviews are often easy enough to find, so long as you know where to look. For example, two popular review websites in the US are Google Review and Yelp.
You can (and should) also ask your potential financial advisor to provide references to current clients. Show them that you mean business by letting them know that you’re inquiring about their business. If they don’t want to give you any references, take that as a bad sign.
- Schedule Interviews
Just because we’re telling you to start looking for a financial advisor ASAP doesn’t mean that we think that you should rush the selection process. Use the tips we’ve discussed so far to narrow down your options. If two or three financial advisors look good, schedule interviews.
Interviews give you the opportunity to talk about your unique needs. Sure, we’re all preparing for retirement, but that doesn’t mean that everyone’s portfolios look the same. You may be planning to set your children up for the future or you may want to take out insurance policies on multiple properties–either way, an interview gives you the chance to evaluate whether or not it’s a true match.
- Look at Financial Advisor Credentials
The credentials to become a financial advisor are going to vary from country to country, state to state, and province to province. That means that you’re going to have to do some additional research. The goal is to find out what types of licensing, educational backgrounds, and/or experience someone needs to become an official financial advisor.
Make sure that you’re hiring someone who fits the bill. Believe it or not, there are a lot of people out there who are working as “financial coaches” and other similar titles. They may seem like financial advisors on the surface and may make promises that sound good but without the proper credentials, you’re better off looking elsewhere.
- Seek Out Someone Who Wants to Explain
Let’s go way back to the beginning when we said that we don’t expect you to become a finance wiz overnight. We don’t! But that doesn’t mean that you shouldn’t want to know what’s going on with your money.
One thing that you’ll notice when you head to https://consilium-ifa.co.uk/ is their client-first approach. Your financial advisor should want you to know how your accounts are doing and why they’re making certain decisions. They should want to find ways to communicate their expertise in a language that you understand.
Make Choosing a Financial Advisor a Priority
All around the world, people are waiting to start planning for retirement. The problem is that many workers are expecting safety nets and retirement help that doesn’t exist in their country anymore. That’s why everyone should make choosing a financial advisor–and a good one–a top priority.
Looking for more financial tips that will turn your savings account into a steadily growing asset? Take a look around as we discuss more ways to protect your money and your future.
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