What to Look for in a Financial Advisor
You will know a good financial advisor with the following qualities: putting your interest first, understanding your needs, understanding your situation, work hard to help you accomplish your financial goals in a given time. If you find an honest, trustworthy advisor and one who will treat your business as his own in that he treats your losses as his own, then you have found yourself a good one. Your net worth will be taken care of if you find a financial advisor with good values.
Below are essential to the financial advisor that you will hire.
Your financial advisor should have credentials. Your financial advisor should have received certification from the Certified Financial Planner Board of Standards Inc. With a certification, you are assured that he meets the board’s requirements in terms of education and experience, and that they abide by the board’s code of ethics.
Make sure your financial advisor has plenty of experience in the field of professional financial advisory. The advantage of having a financial advisor with plenty of experience in the financial industry is that he knows how the industry works, he has plenty of contacts and he knows the importance of putting his client’s interest’s first. You should also check his expertise and knowledge in portfolio structuring, taxation, benefits package, and other related financial issues as it related to your situation. IF your financial advisor has successfully worked for a client who has the same needs as yours, then you are looking at the best advisor you can have.
The best financial advisor is a fee-only financial advisor who does not receive commissions for investments and financial products that clients purchase. There will be a conflict of interest on his part if he gets commissions on investments and financial products that his clients purchase and his credibility will then be questionable when it comes to providing you with realistic investment options.
An important factor I determining the competence and success of a financial advisor is his character. This could prove to be the most important gauge of all. His personal and corporate values speak much about his character. He is that kind of person who listens well to your financial concerns even if there is a lot of drama included in it. A good financial advisor is patient and will not cut your off while you are speaking and is not arrogant. If you want to prevent future problems don’t hire anyone who is impatient, or smart alecky. The qualifies of a good financial advisor would be someone who is accomodating, patient, a good listener, can empathize and sympathize with you.