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Choosing a financial advisor

Image Source: Business Insider

Written By: Abdullah Al-Ejel

Some people live a simpler challenge balancing only an income and expenses, while others deal with a complicated portfolio of investments. However, either situation can be a different workload on an individual basis, and the necessity for a financial advisor should always be considered.

One might assume an advisor is only for the extremely wealthy, but that’s not necessarily the case. If you are an individual who has no time, uncertainty in investment choices, and huge life changes are incoming, a financial advisor may be of use to you. Generally, you don’t need to meet a minimum salary to need an advisor, however, some firms do require it. If you live paycheck to paycheck, you typically don’t need an advisor, and an alternative is consultations when necessary.

Choosing the right advisor can determine how successful your future is. The most important box to check off is for your advisor to be a fiduciary, where they are legally and ethically bound to work in your best interest. Also, confirm that their salary is not commission-based. This causes a conflict of interest where the advisor will most likely sell rather than do only what’s best for you, in order to achieve a larger paycheck. A fiduciary advisor locks in that trust, and you’ll be in safer hands. Your advisor should also have series 7 and 65 certifications, permitting them to sell securities. Interview multiple advisors as well to determine which one is best for you, as not all of them are a guaranteed good fit, and some may not have the type of investments you’re looking for.

Every person should at least try creating a budget sheet and a multi-year plan before instantly spending money on an advisor. If you put the time and focus into it, you could save yourself from paying others. This kind of choice isn’t small or easy to make, so go in with a clear mind and set of investing and future goals beforehand, and do not feel you have to choose the first advisor you see.




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