Tips that Come in Handy for Choosing the Right Financial Advisor

Last Updated on May 20, 2021 by MoneyVisual

Are you looking for ways to increase your savings in the piggy bank? Want to invest your hard-earned money in lucrative projects? If so, you are not alone. Streamlining your future by increasing your savings is the dream goal of all the working professionals.

But, the question is with little financial knowledge how you will convert your dream into reality. This is where the financial management services, can come to your assistance. Financial advisors do the magic trick for you by finding the lucrative investment opportunities that will give you higher ROI.

Financial planners advise their clients on the ways to save, invest, and grow their money. They can come to your assistance to achieve your dream financial goals. Whether you want to buy a new house or want to invest in a new asset, financial advisors can help you out.

From planning to execute your financial plans, financial advisors can do all sorts of things for you. But, when your future is under consideration, you can’t trust anyone. To accelerate your ROI, you need to find the right financial planner. Keep reading to know what all you have to look for when choosing the financial advisor.

1. Compliance with the Standards:

First thing you need to look for when choosing the financial advisor is their certifications and license to carry out the work. Accreditation is the instant signal of credibility but not a guarantee of the service. You have to ensure that the license of the financial advisor complies with the regulatory standards. In addition to this, you also have to make sure there are no consumer complaints, regulatory action, or lawsuits against the advisor. To know this, you can take help from fellow customers to enquire about their experience with the financial advisor.

2. Know Your Financial Needs:

Unless you are not clear with what you need, no financial advisor, even the best ones can help you out. There are various reasons why you might need the help of the financial planner. Like, for starting a business, borrowing funds, receiving an inheritance, or for any other financial aid, you will require the assistance of a financial advisor. So, before going all out for searching the best financial advisor in your city, you need to prioritize your need. For doing so take some time to identify, prioritize, and document your financial goals. Some of the things you need to have a clear idea about include:

  1. The amount of capital you expect to invest.
  2. Amount of risk you are willing to take.
  3. Your financial objectives

3. Look Out for the Credentials:

When your future is under consideration, you can’t rely on a paper document or personal statement of your friends. If you think most of the financial advisors are honest, it’s good to be optimistic, but you can’t take any risk. If the financial advisor has the industry designation, verify it with the issuing authority. Also, confirm the training that the advisor has and investigate their prior work.

4. Dig Deep to Know About their Experience:

They say you can’t judge a book by its cover. The same is true while selecting the financial advisor. You can’t judge the advisor only on his skills and qualification. You need to look for their experience as well. To safeguard your interest, you should ask the potential advisor about their years of experience. Desire, intelligence, and responsibility sum up for the experience of the financial advisor. 

5. Expertise they Posses:

Most of the financial advisors specialize in a particular financial area. For instance, a certified public accountant (CPA) focuses on money management and tax planning and attorney specializes in the estate planning and chartered life underwriter (CLU) on insurance and annuities.  With all said, certified financial planner (CFP) must be well versed with all areas of financial advice.

6. The Fees Structure:

If you think financial advisors are going to offer state of the art financial services at free of cost, you are living in a dream bubble. Financial advisors charge a hefty amount in exchange for the service they offer. Fees, commissions, and other costs can act as roadblocks in your financial journey.

Most of the financial planners charge a flat rate based on time, asset value. While others may ask for commission on the basis of the products present in your investment portfolio. To ensure that the advisor is charging the right amount, you should view his track record.

Secure your future by choosing the financial advisor who is a right for your business. Whether you require the best personal tax accountant in London or certified financial planner, these tips will come to your rescue.

Author Bio:

Eoin Holohan is the senior manager at MJH Accountancy who has been providing a full range of accounting, business advisory, and taxation services to clients since 1979. For over 40 years, he has been providing accountancy advice and business solutions to sole traders and medium-sized limited companies.