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A Guide To Choosing The Right Financial Advisor

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A Guide To Choosing The Right Financial Advisor

Surviving in today’s highly volatile market conditions is becoming more and more challenging. The job market is going through a rough phase and many businesses are struggling to survive. In such constantly changing market conditions, people need to find ways to stabilize their income and gain financial independence. They need to make sound investments and have savings to stay prepared for the worst times. Today, managing finances aren’t just about investing in real estate, RD, and FDs. You need to diversify your portfolio and spread investment into various products like equity, gold, e-gold, bonds, etc. But do you find it intimidating to research different products and choose the best investment options? Are you looking for a solid retirement plan? Or do you want an estate plan to safeguard the future of your loved one? 

Whether you’re stressed about taxation or need investment advice, hiring a financial advisor is the best choice. You may read several articles and keep up with the latest market information, but it takes years of experience to deal with complex tax laws and choose the right investment products according to your specific risk appetite. Hiring a financial advisor can help you meet both short-term and long-term goals. However, finding the right professionals needs a little research. Not every professional claiming to offer multiple financial services has the proper qualification and experience to create a solid financial plan. So, if you’re looking for a reliable financial advisor, here are some tips to help you make the right choice.

Credentials & Experience 

First, you need to consider what type of services you need. Once you have a clear idea about your goals, start looking for a financial advisor who has the necessary credentials and qualifications. Credentials ensure that the professional is well-versed in the subject. You need a financial planner who is registered by some regulatory organization and has proper credentials like Certified Financial Planning (CFP) certification that indicates the professional meets the global standard. In addition to this, make sure the professional has relevant experience in specific services you need. Look for a financial planner who has at least 5 years of experience in services like tax planning, estate planning, investment advisory, etc. 

Check Fee Structure

Keep in mind that financial advice is not free. Initially, financial advisors used to charge a percentage of the assets they managed for the specific client. But these days, financial planners have different fee structures, making their services more accessible to clients of all financial means. Ideally, the best professionals charge a specific fee for the services they offer. If you find a professional who is not charging a fee, it means the professional relies on commissions and possibly offers biased recommendations to earn more commission. Whether a financial planner is charging a flat fee or a percentage of the assets they manage, make sure to discuss fee structure in advance. 

Perform Reference Check

When you need a doctor or lawyer, you do extensive research to verify the expertise of a professional. Likewise, performing a reference check is essential when hiring a financial planner. Like a doctor is responsible for saving your life, a financial advisor plays a significant role in managing your finances. So, make sure to trust a genuine financial firm that has a good rapport. Check online reviews and ratings, as well as inquire with existing clients of the financial advisor about their satisfaction with the advice they received. While reading reviews or speaking to past clients, find out whether the financial advisor takes the time to understand the client’s problems and engages in meaningful conversations. Their past clients should have noticed a significant improvement in their financial situation since working with the financial planner. Also, fix a meeting with the advisor to gauge their skills.

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