Tips For Picking A Financial Advisor

Grow your money by picking a skilled, trustworthy financial advisor. Planners can offer you a wide range of services to expand your portfolio and help you build a solid financial future. Do strict research to find a good match for your needs.

If you’re a new investor or seasoned veteran speaking to a skilled expert can give you confidence in your portfolio. As with any financial venture past performance does not indicate future results. Accept the idea that you’ll need to ride out market highs and lows if you’re a long term investor.

Run Thorough Background Checks on Planners

Run a background check on prospective financial advisors. Do they have a checkered past? One mistake or error in judgment may be allowable but any pattern of dishonest activity can be a marker of bad things to come. If your planner has been arrested or convicted of a crime or under investigation by a regulatory body you may want to think twice before working with them.

Inquire into references of current clients whose goals match yours. Speak to their current customers to see if they have a proven track record with similar clients.

Avoid Boastful Planners

Advisors obsessed with their market beating exploits are usually setting off a red flag. If you need to puff yourself up endlessly you lack confidence in your abilities. The real players allow other advisors, experts and clients do their endorsing for them most of the time. Few people can beat the market year in and year out. Most braggarts are either lying outright or worried about their future performance and grasp desperately at past performance, which of course does not indicate future results.

Walk out of interviews if advisors boast wildly about their market beating exploits. These individuals are either lying or taking huge risks with your valued capital. Planners should offer solid counsel across a wide range of investment vehicles and be less concerned with besting market averages over a set range of time. Skilled, successful financial advisors should ask you about your time horizon and your risk tolerance instead of trumpeting their past accomplishments.

Weigh out Pay Structure

Determine how your financial advisor is compensated before picking the individual to handle your investments. In most cases you want to release advisors who make money on a commission basis. These individuals may be out mainly for themselves when they’re receiving a portion of the package they are selling to you. Some positive, altruistic people are effective and helpful commission-based planners but you’re better off moving away from these financial advisors.

Fee-based advisors are not necessarily the right choice either. Since fee-based planners would make little money encouraging you to buy a home or cash out large assets they may be less than forthright in offering advice. Consider working with advisors who charge by the hour. If you have simple requirements this crowd can best service your needs. Hourly planners are likely new advisors who can give your account the attention it needs to grow properly. These folks are hungry to get glowing testimonials to grow their business and are more likely to go above and beyond in growing your portfolio to receive your endorsement.

If you’re in the market for a new financial planner consider Aaron A Delsignore for your needs.