Introduction
When you want to choose an independent financial advisor, the first thing that you need to do is figure out what type of advice you want. You might be looking for someone who can help with saving for retirement, investing for college, or creating a budget. There are many types of advisors and they have different services that might work best for your needs. Below are 6 factors that you should consider before deciding to hire a local independent financial advisor.
- The amount of money you have
If you have a huge amount of money and time, then hiring an independent financial advisor might not be the best option for you. If you have a small amount of money that you can invest into a 401k, rest assured that there are plenty of companies and websites out there that do not charge much at all for their services. The most important thing is to find someone who will work with your budget and goals.
- Any financial goals you may have
Most independent financial advisors would work well with someone who is looking to get out of debt, save for kids’ college, set themselves up with a retirement plan or maybe they are looking to just invest in a new business or home. Whatever your goals may be, make sure that your advisor can provide you with the services that will help you reach those goals and find out how much those services cost.
- Fees
Your independent financial advisor should be willing to provide you with a fee structure for his or her services. You should have no problem getting a fee breakdown from the advisor, and you should also understand what all of the fees are for. If you may be paying more than one fee at a time, make sure that you get a clear outline of each one and how it can benefit your investments.
- Investment experience
Your independent financial advisor should have some experience when it comes to investing as well as other business aspects. If you are looking for some advice on how to get more out of your investments and maximize your returns, it would be a great idea to seek out a financial advisor who has a lot of experience in this area.
- Degree or education certification
Make sure that you do not hire an independent financial advisor unless the person is properly certified. Anyone who is offering you investment advice should be able to prove that they are certified and have the experience to do your job. If the person does not have a background in finance, you may want to look elsewhere.
- Location
The location of your advisor can play a part in the fees that you end up paying. The same services from one city to another may be priced differently. Make sure that you ask about any hidden fees and costs so that you do not end up paying more than you intended for services.
These 6 factors will help you determine whether or not hiring an independent financial advisor is the right decision for you. You might end up hiring someone who provides you with great personal attention, but they may charge too much for the service. If you do find yourself facing this dilemma, contact a financial planner for more information.