Posted by Managementguru in Business Management, Entrepreneurship, Financial Management
on Dec 13th, 2019 | 0 comments
4 Questions to Ask When Choosing A Financial Advisor Research indicates that many people are intimidated by money and are, therefore, not so great at managing their personal finances. That’s because most people lack personal finance knowledge, according to sources. As a result, only 40% of Americans would be able to cover a $1,000 unexpected expense, Bankrate reveals. That means they’re only one emergency away from bankruptcy. About the Author: Michael Deane has been working in marketing for almost a decade and has worked with a huge range of clients, which has made him knowledgeable on many different subjects. He has recently rediscovered a passion for writing and hopes to make it a daily habit. You can read more of Michael’s work at Qeedle. Not knowing the basics about money management can cost you a lot (much more than what you would pay for the services of a financial expert). If you are one of those confused individuals, turning to a financial advisor ike My Wealth Solutions seems like a logical choice. Here are some questions to help you choose the right financial advisor for you. 1. How Will You Help Me Reach My Financial Goals? Let’s start with the basics. You would like to start saving for your retirement or you’re interested in becoming an investor but have no clue how to begin. The first thing you should ask your potential financial advisors is, therefore, this: how will you help me achieve that? In order to answer, the potential financial advisor will have to ask you several questions first. Don’t worry, that’s what they do. In order to help you achieve your financial goals, the advisor must know what your goals are, whether you’re looking for long-term or short-term wealth growth, if you are thinking about early, what is your current financial situation, how much you earn, etc. After receiving this information, the advisor will then recommend the best path for you to follow in order to achieve your goals. Keep in mind that the questions above are crucial for you to know whether to hire said financial advisor. They should not simply give you generic advice before hearing the details about your financial situation. 2. What Qualifications/Credentials Do You Have? Don’t forget to ask the financial advisor you’re talking to about their credentials and qualifications. Why should you hire them? Why is this important? Because there are countless financial advisors out there and unfortunately, not all of them are equally good at what they do. You want someone you can trust with your finances. As you yourself don’t know much about personal finances, it would be easy for someone to misguide you when it comes to money management. Try to find a way to check their credentials and ask about their previous clients. Perhaps there’s someone you know among them so you can check this information. Speaking of that, if you don’t want to risk it, you should ask a friend or family member to recommend a financial advisor that has helped them before. 3. How Much Do You Charge and How Are You Paid? You have the right to know what this service will cost you so make sure that you don’t forget this question. You should know how much they charge and how they are paid too. Are they paid by commission or is there a flat fee? Some financial advisors charge a percentage for the assets that they manage while others charge an hourly fee. Knowing exactly how much the service will cost you will help you determine which financial advisor to hire. If you can’t afford an expensive advisor, perhaps you should consider...