A financial adviser devises investment strategies that help his clients to reach their financial goals. He/she also advises their clients on the right investments that help to reach their goals faster. However, it is important to find a financial planner, who is experienced and professional. It is advisable to act with due diligence and do some homework to find the right planner who, suits your requirements.
Here is a handy guide to help you find financial adviser, who is reliable and reputed.
The first step is to understand the type of financial adviser, who is suitable for your requirements. There are three types of financial advisors, financial planners, investment advisors and retirement planning advisors. Some financial planning companies offer comprehensive financial planning services, which include all the aspects of financial planning.
Research the credentials of the financial planners. Some credentials are easy to obtain while others require taking stringent tests and passing them. Selecting a financial advisor with respectable credentials ensures that he has good knowledge about the different aspects of financial planning and can guide his clients. It is also important to verify the track record of the advisor. The financial advisor has access to your money and other critical information, hence it is essential to hire a trusted and reputed financial advisor without any complaints of fraud registered against him.
The third step in the process to find financial adviser is to know how the advisors are compensated. Generally, advisors can be divided into three categories depending on how they are paid. Commission –based, fee-based and only fee. Commission based advisors earn commission from financial services companies for promoting and selling their products, the fee based advisors charge their clients and also receive commission from financial companies, the fee-only advisors are the best of the lot as they charge fee to the clients and do not earn any commissions.
You can use online search engines to find financial adviser in your neighbourhood, who has good credentials and track record. Once you narrow down your options, seek initial consultation with a few advisors and have a detailed discussion with them. Know about the fees charged by the advisors and any other additional charges, ask about the investment philosophy of the advisor and request him/her to draft a sample financial plan for you.