Are you thinking about hiring a financial planner? If you are, that’s a smart move. Securing your financial future is one of the best things you can do for yourself.
However, before you partner with an advisor, there are some key questions that you must ask first. Read on below to learn the best questions to ask about financial planning.
1. Are You a Fiduciary?
If the financial planner is a fiduciary, they are a registered investment advisor or a certified financial planner. If you ask the question and they answer yes, that’s good news!
Fiduciaries have a legal and ethical responsibility to perform in the best interest of the client. Their ultimate goal is to help you to succeed in your finances. If they say they are not a fiduciary, it means that they’re probably a registered representative or broker.
If that’s the case, you might want to move on to someone else. non-fiduciary advisors receive commissions, and the products and services they recommend might only be presented to get a sale.
2. How Do You Earn Money?
Each financial advisor uses a different fee structure. The way that your planner receives compensation will tell you a lot about how they’ll advise you. If they are fiduciary, they’re a fee-only advisor and only receive money from their client.
However, fee-based financial planners receive additional commissions for the products and services that they recommend.
Fee-only advisors generally charge a percentage of the assets that they manage for you, which is usually 1%. They may also charge an hourly fee or flat fee for planning work.
3. How Will Our Relationship Work?
Essentially, you want to know how much access you’ll have to your financial planner. You need to understand whether or not they’re available by phone or email. You also need to learn if a particular advisor can commit to you long-term.
For the most part, client and financial planner partnerships are lifelong. But it’s in your best interest to know if the advisor can serve your family for years to come.
Is the particular planner a few years away from retirement? Does the financial firm have a succession plan in place? All of these questions reveal whether or not you should choose a particular advisor.
Furthermore, it’s vital to know how things would work if a new planner were to take their place.
If you’re ready to move forward with securing your financial future, follow this link: www.jalawrence.net/alpharetta-financial-planner.
Partnering With a Financial Planner
If you ask the questions above before hiring a financial planner, it will ensure that you choose the right person. Not only that, but you’ll know exactly what’s in store before you move forward.
Selecting an advisor affects your finances and your future, so choose wisely!
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