Imagine yourself standing in a crossroads, surrounded by financial jargon. You must make complicated decisions. Financial advisors are there to help you navigate the confusion of making decisions – read here.
They do what? You can call them your financial advisers. Your financial advisor will help you to navigate through all the different aspects of investing, saving and other matters. However, they are more than numbers. The strategies they create are tailored specifically to you and your life goals. Do you want to retire sooner? We’ll help you find the solution. Are you ready to save for your child’s college? There are many options available.
Google is a one-stop shop. Then why would someone need to hire a professional advisor then? You can find some advice on the internet but an advisor will be able to provide personalized guidance. The tailor made outfit is the best, however a suit that you buy off of the rack may be okay.
We’ll explore different advisor types. Fee-only and hourly fee advisors are available. Also, you’ll find advisors who make commissions on the sale of financial services. The hybrid fee-based advisor is a combination of earning both commissions and fees.
You may have heard the term Fiduciary Duties. The term is a nice way to say that your advisor should act in you best interest. It is important to check that your advisor adheres to the duties. This is like a trusted friend who won’t lead you astray or lie to you.
It is not enough to look at the letters following a name when choosing an advisor. Have they built up a customer base? Does the person you are considering deal with others like yourself? Perhaps you are looking for someone to track your progress with the help of digital tools.
Do not put your entire nest egg in one basket. It is important to diversify both your investment and the advice that you receive. Some people even use robo-advisors–automated platforms offering low-cost solutions based on algorithms.
A funny story I heard: I was talking to a guy that was heavily investing in stocks, just because his hairdresser thought they were hot. Spoiler alert: it was not a good piece of advice. What’s the moral? Only professionals should be trusted with serious financial issues.
You must trust. No one would ever know your most intimate secrets. You should choose an advisor who you trust.
Good advisors will teach you while you do it. Imagine having the ability to catch more fish than you would if only one was given to you each time.
Where does the company fit in? They are like the Major Leagues. Multi-experts work together on comprehensive plans. The firms provide a range of services such as tax planning and estate administration.
However, bigger isn’t always better! Smaller boutiques can provide better service than giant corporations with thousands of customers.
Have you thought reading financial statements was similar to deciphering hieroglyphics from ancient Egypt? You can make the data more understandable by translating it.