As seniors enter retirement or financial situations change, there are resources available to help manage budgets, track spending, and plan for expenses. According to the...
As you approach the end of your career, it is important to actively think about financial planning. One of the most critical aspects of planning for retirement is deciding who will help manage your finances. When looking for a financial advisor, many factors should be considered. You might know several financial advisors personally, but your neighbor's cousin isn't always going to be the best fit for your needs. This article will cover ten tips for finding the right financial advisor towards the end of your career!
Finding the Right Financial Advisor for You
Ask for Referrals from Friends and FamilyWhen trying to find the right financial advisor, it may not be easy to find one you can trust. If you ask your trusted friends and family whom they use, you can get a second opinion on whom to hire. Suppose you are unsure about asking your friends and family. In that case, there is also an option to reach out to someone in the field that has experience with a CFP or RIBA. They may have connections with great advisors!
Check Out Their WebsiteGenerally, financial advisors today will have a website. Ensure you check out their website to see if it is a good fit. If you are spending a lot of time together, they must have the same values as you.
Other things to look for on their website:
- Contact information (phone number, email address)
- Hours and days open for business or office hours
- What services can they offer?
Be Wary of Payment TermsIf your financial advisor asks for payment and has not given you a plan of action on what they would like to do to benefit your financial portfolio, this could be a red flag. Make sure to get a contract in writing and that the financial advisor cannot withdraw funds without your permission. Make sure they go over a complete game plan with you before you pay them for work completed.
Do Your Research on the Advisor's BackgroundThis includes where they went to school, what certifications they have, and how long they've been practicing in the financial field. This one is important as you want to make sure that the professional dealing with and giving you financial advice has a moral code, a solid track record, and is trustworthy.
Understand the Fees (and Fine Print)
- Are there any hidden costs?
- What is included in those fees?
- Are you getting value for your money?
The fee should include all the costs for advice, investment management, and managing your portfolio. You don't want a surprise charge during or at the end of the service. Make sure it is all clear at the start!
Get Everything in Writing!Financial advisors should provide you with a contract that spells out the terms of service so both parties know exactly what is expected of them before signing it.
This ensures that both parties know what to expect and no surprises later. If something were to happen and you needed to go to court, having everything in writing will help.
VersatilityFind an advisor who will work with all aspects of your finances- not just investments or retirement planning but also taxes, insurance needs, etc. This will be helpful and convenient as you will only have to use one service to get all your professional financial advice, which will be a huge time saver, and prevent conflicting advice that doesn't look at the full picture.
Get a Sense of Their Personality TypeMany times, it is just having a good connection with your financial advisor that makes all the difference. Listen to your gut when you meet for the first time.
This will help you determine whether this is someone you want to work with for the long haul.
Ask for Their Qualifications and CertificationsMake sure to ask for your financial advisor's qualifications and certifications to be sure they are qualified to provide the advice they're offering.
For example, one of your qualifications might be a CERTIFIED FINANCIAL PLANNER™ professional designation from the Certified Financial Planners Board of Standards®.
What is CFPC? It stands for Certified Financial Planners Certification Corporation. It is an organization created to help with the credibility and reliability of financial advisers advising clients.
Ask for referencesLastly, one final touch that you can incorporate in your search for the perfect financial advisor is to ask them for their references. This will add comfort to the idea that they are qualified and have the knowledge to guide you.
There you have it! Ten tips for finding the right financial advisor towards the end of your career. This advice can be applied to any age range. Still, many of these become even more important the closer you are to that retirement age. The closer you are to retirement, the less time you have for mistakes. Be sure to take your time and find the right person to work with you.