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How to Choose the Right Financial Advisor for Your Needs

September 18, 2017 in Uncategorized | MARTIN WREN, P.C. | LEAVE A COMMENT

You may have a lot of questions as it relates to your current and future financial stability and security. Having a financial adviser on your team can make it a lot easier to feel good about how you manage your money. What are some issues to consider when choosing someone to help you craft a fiscal strategy?

How Much Does This Person Charge?

No one is going to give advice away for free. However, it is generally better to find an adviser who will charge a flat fee for his or her services. This reduces the possibility that you work with someone who is only interested in pitching investment products in the hopes of getting a commission. Typically, financial advisers who are fee-only cannot sell life insurance or other products that allow them to earn commissions.

How Much Experience Does This Person Have?

If you have relatively few assets, you don’t necessarily need someone who has experience as a hedge fund manager. You may only need someone who has a financial background who is local and accessible when you have questions. However, if you do have a high net worth, it may be worthwhile to work with someone who has run a hedge fund or has experience working in a bank or for a venture capital company.

Does This Person Have Specialized Knowledge?

All financial advisers have a solid background when it comes to basic financial terms and basic financial products. Therefore, almost anyone should be able to help you pick a mutual fund or find ways to save on your student loan payments. In some cases, basic knowledge won’t be enough to meet your needs. For instance, if you are going through a divorce, you will want to work with someone who understands how a QDRO works or has experience helping people sell their companies.

Consider a CPA Or Alternate Fiduciary

It is important to point out that there is no formal definition of a financial adviser. Instead, a financial adviser is anyone who provides services related to helping a person manage his or her money. However, a fiduciary is legally bound to look out for your best interests when giving advice. A CPA is generally bound by ethical standards to do the same. This means that you won’t have to worry about someone suggesting that you buy a stock or use a product simply because that person gets a kickback from a third-party provider.

Do You Need Ongoing Assistance?

If you just have a question about how to rollover an IRA or how to handle your student loan payments, it may be worthwhile to talk to someone at your local bank. However, if you need someone to actively manage your investments for the next several years, it may be worthwhile to hire a private service provider. That may make it easier to develop a relationship with an expert who can craft and execute a plan tailored to your specific needs.

It is likely that you will need financial advice at some point in your life. By choosing a proper source of advice, you may avoid making poor decisions that could ruin your chances of being financially secure both now and in the future. Therefore, make sure to do your research and talk to multiple service providers before choosing to work with a professional in the finance field such as the Financial Advisor Gaithersburg MD locals have been working with for years.

CIC Wealth ManagementA special thanks to authors at CIC Wealth Management for their insight into Financial Advising.

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