When you hit the big 5-0, it is only normal for you to start worrying about your finances – and most importantly, your retirement. While everyone is celebrating you hitting a big milestone and eating cake, all you can think about are debts, bills, and retirement funds.
So, days later, you get back to work, and you mention your predicaments to a friend or colleague who advises you to get a financial advisor. You ponder upon the idea and think to yourself that a financial advisor could be a good investment, but now, you are worried about finding the right one.
It’s no secret that getting a financial advisor might be the right move for most people because they are much more experienced and have sizable knowledge about the field.
But, where do you look? And what kind of a person do you look for? Well, it is going to require a lot of research and evaluation to make the correct picks, but before you do, here are some questions that you NEED to ask before you finalize your financial advisor.
Why did they choose the career?
The answer to this question can give you an insight into the kind of financial advisor they are. If they genuinely enjoy their work, they’ll have no issue guiding you and being patient with you as you call the shots. They will also provide you with the best solutions after understanding your income, debt, and assets.
What services do they provide?
No financial advisor is a jack of all trades so you need to inquire beforehand about what the financial advisor specializes in. Some financial advisors deal with retirement while others focus on investment plans or even tax strategies.
What are their compensation and custodianship expectations?
You need to discuss important aspects of hiring a financial advisor like their preferred payment method – do they take payment hourly, annually, or per transaction? Another thing you want to make sure to be crystal clear about is custodianship. The financial advisor should have no concern with your assets but a reputable custodian who will hold your assets, produce monthly installments, and do whatever else is needed.
Lastly, you are going to talk about the fact that if your financial advisor leaves or goes on an indefinite break, what will be the exit plan? Will another financial advisor assist you on the same terms, or will you have to look for another?
These questions might sound basic, but they are often overlooked. Use them correctly, and they can help you secure a reliable financial advisor.