If you’re planning to invest your money in a worthwhile venture but don’t quite know how to start, it might be a good idea to hire a financial advisor. This gives you an edge over your finances and allows you to spend your money wisely. Financial advisory services also helps you earn an extra dime rather than letting your savings lie idly in a bank. AFH Independent Financial Services offer exquisite monetary advisory services that can benefit you immensely.
Here are 5 tips to finding a good financial advisor:
- Check their qualifications
Your financial advisor needs to be competent enough to handle this crucial job. Advisers ought to take a myriad of courses and qualifications before they can offer financial advice professionally. Although standards in this industry keep on changing, don’t hire a financial advisor with zero academic papers. Request to see an Advanced Financial Planning Certificate (currently referred to as Diploma in Financial Planning) or similar certification. After all, the proof of the pudding is in the eating.
- Be choosy
Picking a good financial advisor is a crucial investment decision that requires a lot of contemplation. This isn’t one of those scenarios where you toss a coin or draw straws to determine who wins – you need to interact with a couple potential candidates before making this life-changing decision. Most advisors will offer a free introductory session to discuss their process, determine your financial standing and to establish how much their services will cost. Utilize these sessions and ask as many relevant questions as you can. Get to know the individual as well. If he/she starts talking about the hottest investments in town within the initial minutes of your conversation, run and don’t look back.
- Speak to their references
Ask your preferred financial advisors whether you can speak to several of their current clients. This gives you an idea of how exquisite the advisor’s services are. If the professional advisor gives you the green light and hands over the contacts of some of his/her clients, you can get some helpful insights about the IFA (Independent Financial Advisor). If he denies your clients, he instantly raises numerous red flags.
- Find out how much they charge
Fee-based advisors usually receive a variety of fees and commissions that will eventually trickle down to you, so it’s wise to get clarification about what kind of deal you’re getting into. Fee-only advisors, on the other hand, don’t accept commissions of any kind. Such advisors charge a small percentage of your entire assets so they can consistently manage your finances. Others will charge a flat hourly fee to offer you periodic financial advice. This fee could range from $100 to $400.
- Inquire about their independence
Some financial advisors are totally independent while others work in cahoots with building societies and banks. Independent FAs have the freedom to sell you a variety of properties and products in the market. The latter, however, are always inclined to sell you the properties they represent regardless of whether these properties are inferior to others on offer or not. Take this into consideration before making your decision.