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How to Choose a Financial Advisor |
Your financial advisor could bring your financial success or ruin. Choosing a financial advisor is an important step and shouldn't be taken lightly. You can't rely on the advice or recommentations of friends, company marketing, or the internet to find an advisor. You must shop around. Finding the right person is a process of trial and error. Make sure your financial advisor ticks all the boxes before employing them. Here are some questions you should be asking them and they should be able to answer. |
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1.Are
they listening? First of all, and it may sound obvious, but your financial advisor must be able to listen. An advisor that spends the initial interview doing nothing but selling themselves is full of hot air. They need to ask the right questions to ascertain your needs and thoughts on investment. 2. Key facts Your financial advisor should be asking some key questions about your financial situation:
3.Your experience Your financial advisor should ascertain how money savvy you are and make sure you fully understand and are happy with any package they propose. They need to find out how happy you are with taking risks and whether you can afford to take risks with your money or not before they introduce any options. |
3.Your
experience Your financial advisor should ascertain how money savvy you are and make sure you fully understand and are happy with any package they propose. They need to find out how happy you are with taking risks and whether you can afford to take risks with your money or not before they introduce any options. 4.Eggs and Baskets One of the most basic pieces of advice in life as in money, don't put all your eggs in one basket. Your financial advisor should be talking about diversifying your investments. What are their reasons for taking on a particular investment. Make sure they are sound and backed up by solid written evidence. Preferably from an external report. |
6.Open and
Honest A financial advisor needs to be upfront about the advice they have given. Was there anything that might have influenced this advice that you should know about. This includes any commision they make. All other incentives should also be made known. If they have been offered significantly more to promote one product over another this should be made clear to you. 7.Shop around. Their advice or service may be free but the results of bad advice from a financial advisor can be long reaching. Take your time and shop around, only be speaking to at least 3 people will you get a feel for who is best suited to you. Good luck! |
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