Four Mistakes to Avoid When Hiring a Financial Advisor

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Four Mistakes to Avoid When Hiring a Financial Advisor

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Using the skills and knowledge of a financial advisor is an excellent way of making sure your money is working as hard as possible. The right advisor can contribute greatly to peace of mind and help ensure that you are financially secure. However, you need to make a good choice.

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Trusted Track Record

One way of making sure your choice of advisor is a solid one is to ask for referrals. Get some recommendations from people whose opinion you value and you should have a good pool of candidates from which to choose. For more tips on choosing wisely, see this report from The Guardian.

Make sure the advisor you engage is also a fiduciary. A fiduciary is obligated to put the financial goals of their clients first, and this should ensure better and more cost-effective results.

Costs and Credentials

With financial advisors, it is a good idea to do your due diligence. Ask for their credentials, and then make sure those credentials are genuine. You will probably want an advisor with a CFP or Certified Financial Planner qualification or even someone who is a chartered financial accountant or CFA.

 

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Your advisor also needs to make a living from doing this work so you will need to pay them. It is a good idea to ask for a schedule of fees upfront so that you know exactly what you will liable for. Their fees could take the form of commission or a percentage of what they are managing. Percentage payments are generally preferable. This encourages advisors to make the best recommendations, as they benefit from these too. Some advisors use software which allows them to make complicated projections swiftly and easily. If you are interested in finding out more about the possibilities of financial adviser software, then Intelliflo financial adviser software should be on your list of options. A reputable brand of financial adviser software like this can give the flexibility which makes a big difference when looking at different scenarios.

Managing money with the help of a financial advisor is generally a smart thing to do that will make you wealthier. Do your research and make sure the advisor you select will perform the way you wish, and this should be the start of a profitable relationship.

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