5 Factors to Consider When Hiring Financial Advisors
Did you know that less than 20% of Americans have a financial advisor? And while you may be winging it when it comes to your finances there are some major benefits that come with having an advisor.
But let’s face it. It can be difficult to hire a financial advisor if you don’t know exactly what you’re looking for. While anyone can claim they can assist you with your financial goals, there are certain qualifications you should look out for. Additionally, make sure you document everything and talk to the right person before you sue your advisor when things go south.
If you need professional help managing your finances, you should know your options for experts. Here are the factors to consider when hiring financial advisors.
1. Understand Your Financial Needs
If you haven’t noticed, when it comes to financial advisors, there’s no cookie-cutter advisor that will meet all of your needs. Whether you’re looking for mortgage companies because you’re going to buy your first home or need an advisor for your divorce, it’s important to identify and prioritize your needs
One of the first things to look for when hiring financial advisors is qualifications. Sure you may have found a financial advisor with years of experience. There are so many certifications that can be acquired as a financial advisor. But be sure to do your research to make sure that your advisor is the best fit for your situation. This is why most people would only work with the best financial advisors, like The Kelley Financial Group in Pittsburgh, or others that posses similar qualifications.
3. Financial Advising Experience
Another factor to consider when hiring financial advisors is the financial advising experience. Let’s face it. We’ve all hired someone who looked good on paper. But there are certain questions you should ask your advisor to make sure they are fit to handle your case.
These questions should be but are not limited to:
- How long have you been working as a financial advisor?
- Do you have a financial domain you are associated with?
- Do you have prior experience in situations specifically like mine?
Although these questions can seem very straight forward, they’ll help you decipher if this advisor can help you reach your financial goals.
Another important question to ask your future advisor is how will they be compensated. While each financial advisor has its own fee structure, they usually charge by hourly rate, fixed-rate, fee-based, or commission.
And even if one company has a fee structure that fits your budget, comparing advisor fees is recommended.
Last but not least, compatibility is key when finding a long-term advisor. It’s easier to respect, talk to, and open about your financial struggles with an advisor you feel like you can trust.
Tips on Hiring Financial Advisors and More
Whether you’re looking into hiring financial advisors or are simply looking to take your finances to the next level, we’re here to help. We know how important it is to have your personal life in order.
This is why we’ve created the perfect platform for those looking to learn more about financial freedom, lifestyle habits, and more. Check out our blog to learn more!