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Choosing A Financial Advisor
Laurie Blume
/ Categories: Financial, Advance Planning

Choosing A Financial Advisor

Tips and Advice

What are seven key issues to consider when choosing a financial advisor?

  1. Do not hire the first financial advisor you meet. Interview at least a few advisors before picking the best one for you.
  2. Choose an advisor whose specialty will meet your needs. For those of us who are gracefully greying it is important to find someone who specializes in retirement planning.
  3. Pick an advisor whose strategy is compatible with your needs. How conservative should you be? Do you want to go into stocks, bonds, index funds, a blend? These are all important issues to discuss with a prospective advisor.
  4. Always check references.
  5. Ask about credentials. What tests has the financial advisor passed. What are his or her certifications?
  6. Be careful of branding. Just because an advisor is with a major investment house, does not necessarily mean that he or she will meet your needs.
  7. Understand how the advisor is paid. Is it a flat rate, a percentage of your assets under management? Will it be based upon commissions by mutual funds? This can be a serious conflict of interest. Be wary of churning an account to generate fees.

These are just some basic points. They are important especially when it is dealing with your future and financial health. How to Choose a Financial Planner is an interesting article published by the WSJ that is worth the read.

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