Finding a Financial Advisor or Planner
As seen in Investopedia on September 28, 2019
Getting Your Financials Right
It may have occurred to you just how complex and vital 'getting it right' is when it comes to saving, investing, maximizing the value of your wealth and planning for a safe, comfortable retirement. If so, you've probably asked yourself if you should employ a financial planner or advisor.
Similarly, if you've felt the pressure of deciding on a big investment, such as a home or education—or felt overwhelmed with the financial details after a wedding, the birth of a child, divorce, death of a spouse, or major illness—you've probably wondered about finding someone to advise you.
KEY TAKEAWAYS
Many people seek out professional financial advice from a professional, but with so many options to choose from it may seem overwhelming to find an advisor.
First, determine what level of advice and service you require and how much autonomy you'd like to give away to a professional.
Look for professional certifications and designations after an advisor's name, such as CFA, CFP, or CIMA.
Determine the fee structure you're most comfortable with - fee-only, commission-based, or based on assets managed.
Ask for referrals and then run a background check on the advisors that you narrow down such as from FINRA's free BrokerCheck service.
(Learn about the differences with Financial Planner vs. Financial Advisor: What's the Difference).
Services of Advisors and Planners
According to a 2019 CNBC and Acorns Invest survey, over a third of Americans don't have a good understanding of what a financial advisor actually does. That figure balloons to 46% for Millennials.
So what kind of services do financial advisors and planners provide? Broadly, they can help you manage your financial life using a variety of strategies and products to both manage your wealth and improve your financial habits.
Types of Financial Advice
Not all financial advisors are the same. Some specialize in certain practice areas, types of clients, income levels, investment strategies, and products. Some work with clients all over the country, while others focus on clients in their town. Some can help you with your taxes, insurance needs, or estate planning and others will focus on retirement planning. There are advisors for the younger client and some specialize on retirees. You can find a planner to help with life stages planning, estate distribution strategies, and business planning.
From managing every aspect of your personal or business financial life to simply suggesting directions, there are specialized professionals available to help.
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