Is it smart to talk to a financial advisor?

When you get your first job. Not only can they advise on the best way to start saving for retirement, but they can also provide information on how to maximize your employer's benefit package. Always ask a potential advisor if they are a fiduciary. This means that they work for you and are legally required to act in your financial interest.

After more than 15 years of writing on the subject, I consider myself well versed in personal finance, but I have no experience with individual counseling. That's something to keep in mind if you're looking for a financial advisor; it's no different than seeing a doctor who may have 10 years of research and publishing experience, but who has never performed clinical examinations. There are many do-it-yourself investors who never hire a financial advisor. His thinking is: “I like doing this myself and I am quite intelligent, why would I pay someone 1% of my money every year and reduce my returns? Before committing to a financial advisor, you need to make sure you're hiring the best person for you and your situation.

Start by asking yourself a key question, then review the 10 questions you should ask an advisor before hiring one. If you think exploring a relationship with a traditional financial advisor is the right thing to do, make sure to ask these 10 questions during the interview process. Fee-only advisors may charge you a percentage of the assets they manage (1% is common), a fixed fee for services, or an hourly rate. If cost is a concern, you can opt for a low-cost robo-advisor or an online planning service such as those mentioned above.

Financial advisors, sometimes known as financial planners, are professionals who advise their clients on decisions related to wealth management and personal finance. Being a fiduciary also means that the advisor must respect your financial objectives and risk tolerance, advise you accordingly, and recommend appropriate measures. Even if you're already in your career, it's not too late to talk to a financial expert to help you navigate other important life events, whether it's changing jobs or saving for your child's college tuition. There are no specific educational requirements for individuals offering financial advice and financial planning.

Some financial planners and advisors will work with savers only once, to develop a financial plan or help with a specific problem or question. If you want to talk about long-term plans, such as debt repayment, retirement, property management, life insurance, and real estate, a certified financial planner (CFP) is qualified to provide comprehensive advice on almost all of those topics. However, there are certain times when you should request to meet with your financial advisor despite the scheduled frequency. Properly managing your investments and making the right financial decisions requires time, skill and effort.

Finding a financial advisor or planner may seem intimidating at first, but it's worth it if your portfolio is too large to manage on its own. This is another situation where it's probably worth hiring a financial advisor rather than doing it yourself. Many people already have enough to do, and hiring an expert to handle the financial aspect can mean more time to spend with your family. Many of us feel lost in our finances, that getting a second opinion from a financial advisor can be reassuring.

There are a large number of services that offer online financial planning for less than what you would pay a traditional personal financial advisor or financial advisor. While not all financial advisors can trade securities, many can act as your liaison with a broker or money manager who does. .

Nicole Kuehnert
Nicole Kuehnert

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