“The Stuff You Won’t hear Anywhere Else”
Choosing a Financial Advisor or Financial Planner is a very personal choice. Having a perfect stranger give you financial advice, or entrusting someone to invest your life savings or how to plan financially for the future is a major decision, and should not be taken lightly. There are no right or wrong answers, no hidden agendas or magic dust for you to for see, what it really boils down to is how comfortable you feel taking advise about your money from a person who you do not know.
A Financial Planner is first and foremost a fiduciary. Which means to refer to themselves as a Financial Planner they must be registered through FINRA ( Financial Industry Regulatory Authority) as an Investment Advisor Representative and to hold a series 66 license in good standing. As a fiduciary we must always…always put the clients interest first….period, that is the meaning of a fiduciary.
I am a realist I believe in starting as early as possible to save for the future. Age, income, savings, marital status and most of all risk tolerance are the main factors in which I take into consideration when designing a financial plan for someone, remembering as time goes by the plan has to be tweaked to accommodate the changes in your life.
Financial Planners usually work in one of two ways, either by a fee structure or by commission on the products they recommend to you. What it boils down to is personal choice, we can calculate over the long run which method will be more beneficial to your individual needs, it is also what you as a client feel more comfortable with. There is no right or wrong or a definitive answer, one method is ongoing and the other is transaction based.
The next question is either to use a large or smaller firm? Both offer unique opportunities. The large firm may offer you products that a smaller firm does not have access to. The smaller firm or individual Financial Advisor may offer more personal service that you may not get in a large firm. Once again it is a personal choice that you will have to decide which one works better for you. But whatever you decide i suggest you go to brokercheck on the FINRA website, and you can check the credentials of your potential financial advisor. You can see what licenses he or she has obtained, what licenses are active or if they have had any ethics or regulatory violations in the past. Companies background you when you apply for a job, do the same before you hire a Financial Planner. Remember feeling comfortable with him or her develops trust, which without you cannot do business, period.
When starting to investigate on using a financial planner or advisor start slow, you should not be in a rush to get things going. After you select a Financial Advisor remember Financial Plans take time to develop, a lot of steps are involved in assessing your current and future needs. Lives change so quickly and so does the stock market. Politics, economics and about a thousand other factors influence all our decisions on where to invest and whom to invest with. Slowdown, sit back and assess the situation, in this case it’s better to be the tortoise than the Hare.
If I can answer any of your questions please call me at 520-975-0057 our consultations are always FREE, and we are available in the evenings and weekends by appointment