| With so many choices out there, investors who may be entering uncharted financial territory are going to need a good compass — that’s when it’s time to call a financial advisor.
Financial advisors can assist you in determining your specific financial needs and objectives In addition, they can:
• Keep your financial plan current as your financial situation changes,
• Evaluate and describe for you various investment opportunities;
• Review the asset mix of your portfolio;
• Monitor the performance of your investments
• Suggest revisions when necessary; and
• Research investments designed to help you reach your objectives
How do you choose a financial advisor?
A recommendation from a friend or relative is a good way to find a financial advisor. You can also contact professional organizations or licensing organizations to identify candidates you might like to interview. Look for a company with longevity, a good track record and a good reputation. Ask your advisor lots of questions. Find out if the advisor has experience helping clients with concerns and resources similar to your own. Ask what information you need to bring to the meeting
While meeting with your advisor, ask the following four questions:
• What are your qualifications and experience?
Many financial advisors will provide their potential clients with a copy of their resumes and a packet of information about the services they offer. Clients should know whether an advisor has professional designations or affiliations. Consider if they are individual practitioners or are part of a larger organization.
• What services do you offer?
Find out in what areas your advisor specializes — tax planning, estate planning, retirement planning. insurance products, etc.
• Will you be the only person working with me?
Many financial advisors sometimes employ assistants or work with partners — determine if you are comfortable dealing with other members of the planning team
• How much do you typically charge?
Money is coming out of your pocket — therefore, it is a good idea to find out how your financial advisor is compensated. Advisors may be compensated by fees you pay directly to them, fees paid for asset management or by commission for products sold. The method of compensation is less important than the disclosure of conflicts of interest and the quality of the advice given.
(Editor’s Note: Don Soderquist can be reached at (360) 692-0980.). | 