Regardless if you already have a financial planner or advisor, or you’re now searching for one, you have to always prioritize your best financial interest through the help of a professional. How can a financial advisor help you? Financial advisors don’t promote or sell a product, excluding brokers because they provide expert services to help people achieve their short-term and long-term financial goals and ultimately achieve financial freedom. How can you find the right person to help you in achieving your financial goals?
What are the different specializations? The different types of financial advisors include brokers, investment advisors, and financial planners. Investment advisors give advice on securities including stocks, mutual funds, and bonds. They are also called as “wealth advisor”, “investment manager”, “wealth manager”, “portfolio manager”, and “asset manager”. When it comes to buying and selling, brokers are involved. Brokers are also commonly known as stockbrokers, wealth managers, financial consultants, financial advisors, and investment consultants.
On the other hand, financial planners manage and look on the overall financial aspect of their clients such as real estate, tax planning, retirement, insurance needs, and debt management so they can establish an effective and long-term financial plan. Why choose a financial planner? They can also provide professional advice as an RIA, subjected to fiduciaries, or a broker selling products. According to the CFP Board, a financial planner must always prioritize the best interest of the client ahead of his own interest because he owes a duty of care as to a fiduciary.
It is important to hire a Certified Financial Planner or CFP. Their pay is usually based on commission instead of an hourly and flat rate. It is crucial to consider reviewing the code of ethics a financial advisor adheres to. Never miss asking this important question when looking for a financial planner or advisor or you’re evaluating a current one, “Are you a fee-only advisor who acts as a fiduciary one hundred percent of the time?”. Fee-based financial advisors might only sell products instead of acting as fiduciary.
Once you have chosen a financial advisor you like to hire, get everything in writing, indicate that your financial advisor is a fee-only who will act as a financial fiduciary one hundred percent of the time, and will fully tell you any conflicts of interest. The term “fee-only” eliminates the possibility for the financial advisor selling you products because if he is a fiduciary, he will always give you an expert advice in your best interest. With Family Vest, you are 100% sure that your financial best interest is always a priority.