The financial landscape of today can be quite difficult to navigate. Economic and political uncertainty along with sweeping tax changes can leave a hazy cloud of confusion around your financial future. This may sound dark, but it is worth noting that every hazy confusion cloud does have a silver lining. And that silver lining is a qualified financial advisor.
A great financial advisor can help you navigate this difficult landscape so that you can see past the confusion and make informed, educated decisions. A qualified advisor will also help you every step of the way, whether it’s to discuss investment solutions, plan for your retirement or just help you understand your tax responsibilities.
Furthermore, the right advisor can be a lifelong financial confidant and/or a means to reacha specific goal. There are many different types of advisors that have different specializations, such as mortgage experts, retirement planners, Chartered financial analysts, etc…
As a consequence, choosing the best advisor for your specific financial needs can be quite the challenge. And this challenge can be quite costly in both your time and your money. So to help you find the right one and get the best financial advice, AFH Wealth Managament crafted a list of considerations to take with you on your search.
Ask For Designations And Credentials
It seems that there are many credentials available for financial advisors. But as you search for an advisor look for a Registered Financial Planner (RFP) or for a Certified Financial Planner (CFP) designation. This is because CFP and RFP holders are internationally recognized and regulated by the Financial Planning Standards Council or the ‘FPSC’. These professionals strictly adhere to regulations and ethical standards that are designed to protect you. Also as you search, be astute to the ‘PFP’ designation.
The ‘PFP’ or Personal Finance Planner designation is a recognized, certified professional designation but was originally created for bankers. The ‘PFP’ designation is not particularly relevant for independent financial advisors.
Lean More towards Choosing An Independent Advisor
Searching for an independent advisor gives you a better chance of finding one that cares about YOU, their client. Many independent advisors get paid for their advice and/or their fee-based asset management instead of obtaining the majority of their income from commissions on product sales and trades.
Independent advisors usually set a flat fee or hourly fee for their specific services. Also, if your portfolio does well, they also do well. This is because some of them earn fees that correlate to a small percentage of your invested assets that they are managing.
Learn About Their Investment Philosophies
Always ask specific questions about your advisor’s investment strategies. It’s imperative to know which strategies they have implemented in times of growth and decline. Find out as much as you can, the interview process is all about finding the facts.
For example, does your advisor have a tactical approach? Or do they believe in Warren Buffet’s approach of buying and holding? Do you share these same viewpoints? These questions can help you determine the right person for the job. Whatever questions you have about their approach, they should be able to share examples of portfolios from other clients in your similar situation.
In conclusion, these are some the most important things to consider when choosing the best financial advisor. The best financial advisors will make it a priority to understand you and all your money management needs so you can achieve your goals.
Taking your time and being diligent will pay-off. Following these steps to find the best advisor for you will prove fruitful and might just be the best financial decision you have ever made.