Financial advisors help guide clients in the matters of:
- Growing Their Wealth
They can also help you to achieve more specific financial goals, such as:
- Buying a house
- Paying for your children’s college
- Retiring comfortably
- Charitable Contributions
Some financial advisors choose to specialize in certain areas such as retirement planning or estate planning. While some other advisors choose to provide consultation on a wider range of matters.
Financial advisors are not stockbrokers, who the market players call on to trade stocks. They are also not accountants or insurance agents. Although a good, qualified financial advisors will be able to work with other qualified professionals in areas such as tax, insurance and estate planning to help integrate them into your overall plan.
There are many financial advisors, but very few experts. A lot of people can pass a test to be able to put some letters after their name, but do they have the “real world” experience, expertise and track record to help you achieve your financial goals.
Typically, financial advisors either charge commissions or a flat rate for their services. Commissions are made whenever you purchase or sell a stock or investment. This may not provide the most unbiased advice that you can get.
Chad Richards in his article “The 1 Page Financial Plan 10 Tips For Getting What You Want From Life” says “Hire a real financial advisor.
Richards says it’s difficult to be unemotional about your own money. That’s the real purpose of having an advisor.
“You don’t hire a financial adviser because you’re not smart enough to do this yourself,” says Richards. “You hire one because they’re not you.” He or she will help get between you and any potential mistakes you may make, even if you were to be in danger of making financial blunders every five or ten years.
When looking for an advisor, choose one who is giving you advice, not selling you something, and who is open about conflicts of interest.”
If you would like a financial advisor that will give you sound advice without trying to sell you something, and at the same time open about any conflicts of interest…choose a “fee only” financial advisor.
They only make money when you pay them a fee for their advice. You may pay them a flat fee or an annual fee that is a percentage of your assets they’re managing for you.
Forbes says “Fee–only financial planners are registered investment advisors with a fiduciary responsibility to act in their clients’ best interest. They do not accept any fees or compensation based on product sales. Fee-only advisors have fewer inherent conflicts of interest, and they generally provide more comprehensive advice.”
The Wall Street Journal says “Consider the planner’s pay structure. A planner who earns money based on commission could have an incentive to steer you in a particular direction.”
You want a financial advisor that will focus on your main financial goals with your best interest in mind.
Here’s Your Next Step
If you would like to use a fee only financial advisor to help you manage your portfolio and achieve your goals, give us a call today at 410-435-3270 or simply click here to request a consultation online.
We will help you make an informed intelligent decision on what is best for you and your family.