Do I Need a Financial Advisor?
Besides health and legal considerations, careful thought should also be given to one’s finances. The question is, “Should you take a do-it-yourself approach or hire a financial professional?” Well, only YOU can answer that question, but this post may help you determine which path is right for you.
Financial professionals go by many names—financial advisors, financial planners, and wealth managers—just to name a few. Although there are slight nuances between the titles, their purpose is to work with you to identify your short and long-term financial goals, help educate you on your investment options, and provide you with a personalized plan for reaching them.
- Misconception #1: A financial advisor just offers stock picks and executes transactions for me
- Misconception #2: Financial advisors are only for the rich
- Misconception #3: A financial advisor is just interested in getting paid and doesn’t operate with my best interests in mind
Determining the Advisory Relationship for You
- The traditional advisor
- The robo advisor
- The hybrid approach
Choosing the Right Advisor for You
- How do you work with people my age and income?
- How are you paid?
- Will you act in my best interest?
- What’s your track record?
- How often will I hear from you?
- How can I monitor my investments and access my plans in between meetings?
- Gather data, discuss goals, establish a plan
- Typical “big picture” questions are…
- Be open and honest