So What Is a Financial Advisor?
A financial advisor is someone who you would seek counsel with if you wanted help investing your money, saving your money, and making your money grow. Some of you might have a challenging or hectic job. If you are in the market for making a large financial move, hiring a financial advisor might be the smart thing for you to do.
There are different specializations involved with financial planning, and each one has something unique to offer their clients. Depending on the stage of your life that you are in, whether you are wanting to buy a house or prepare for retiring, consider consulting with a financial advisor to help you the best way that they can.
What you should watch out for:
When you are looking for a financial planner, there are things that you should be on the lookout for. The most important aspect you should know is that finding a financial advisor who has a CFP (which is short for certified financial planner) credential. Someone who is CFP certified has gone through rigorous testing that pertains to the specifics of personal finance. But even someone who is CFP certified may fall short on actually being able to do the job that they promise, you when you are choosing the best financial planner, make sure that you are careful with your decisions and money.
Planners make their money the same way you and I do, by charging for their time and services. You would want to avoid those who charge based on commission, as they are getting paid for selling items. This may not be in your best interest because they may offer biased information, and push you toward purchases and investments that may not be in your best interest, but rather would line their pockets.
Another way that a financial planner might charge for their services is at a set hourly rate. If you go with someone who charges like this, you will only be charged for times that they are actually working for you. Lawyers also work like this, and you pay only when you are using their services.
The final way that a financial planner would charge for their services is having you pay a flat fee for their services. This might be a number, such as $1500, or they might charge you a percentage of the assets, such as retirement or investments, that they manage for you. This number is usually 1%, but it could differ from planner to planner.
Financial planning for yourself:
As with anything, you could always try going about managing your personal finances yourself. Some people try working on their car alone, and for some, it works out wonderfully, and for others, it fails in horrible, horrible ways. Even if you decide to try managing your finances alone, you can always seek professional help if you determine that the task at hand is too large for you to handle on your own. A business owner would benefit highly from utilizing a financial agent who will take care of the money for you.
Regardless of the way that you decide that you are going to go, make sure that you do plenty of research either way. Making sure that you are making the right choice in the person to manage your finances for you is important, and is not a decision that you should quickly jump into. If you need more information, check out Life’s Great | UK’s 1st Online Financial Adviser.