Tips to find out a financial advisor whom you can trust

Tips to find out a financial advisor whom you can trust

Table of Contents

Finding a financial advisor can be an intimidating process. It is not just a numbers game to find who the best at the market is. It is a personal relationship, and you should get someone to listen to you and work with you to help you achieve your goals.

One misconception that is common is that only those people with a lot of money to invest need a financial advisor, says Ellen Siegel, certified financial advisor of Miami.

“Everybody needs an advisor, the same way everyone needs to make an annual visit to the doctor,” says Siegel. “Everyone needs to educate themselves about money flow, debt, savings, goal setting, goal planning and retirement, asset protection, securities, insurance and tax planning.”

A more economical alternative is the use of a robotic counsellor: sophisticated computer software that selects your investments and balances them automatically. Pages like Betterment, Wealth Front, Wise Banyan, Personal Capital and Future Advisor, offer robotic investment services. Brokerage houses such as Charles Schwab and Vanguard also offer computerized assistance models.

Tips to find the right financial advisor:

Look for professional titles:

Anyone can call himself a financial adviser. You can find them in banks, brokerage houses, insurance agencies and independent firms. But do not confuse an advisor with a salesperson. The rule of thumb is a certified financial planner (CFP) or a certified financial consultant (ChFC), who has taken classes on different aspects of financial planning. Another designation to look for is a person who has committed to working with a “fiduciary level”, which means that they have promised to place the interests of the client above their own, and recommend products that are the best for the client, even if that means earn a little less.

Look at what they charge:

Some planners only charge fees and do not make money from the investments they sell. In South Florida, the average hourly rate is between $ 100 and $ 500, Butchey says. Others charge an annual percentage for their assets, normally from 0.5 to 2.0 percent for their management. Some earn commissions based on what you buy. “They may be tempted to rotate or exchange consistently, which will mean big commissions for them, but it’s not necessarily what’s best for you,” Butchey says.

Some advisors offer a second opinion for investors who do the work on their own, who have their money with low-cost brokerage houses like Vanguard, Fidelity or T. Rowe Price, or who have most of the funds invested in a 401 (k). “Since these clients do not have a large amount of money that needs to be managed, those people will pay a fixed fee for a year of planning and guidance,” he says. This fee can vary from several hundred to several thousand dollars, or a percent of net profit. The client can return for a reassessment when needed.


Get advice from any expert like Dwayne Rettinger a is a Certified Financial Planner having experience of more than ten years, to obtain information about your specialty, such as a university or retirement plan, and read the biography. Determine how much money you want to invest.

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email
Share on whatsapp
Share on telegram
Share on skype
Share on tumblr

Leave a Reply

Your email address will not be published. Required fields are marked *