ORLANDO, FLA. (Ivanhoe Newswire)– A 2020 northwestern mutual study found that 71 percent of Americans admit their financial planning needs improvement. Yet only 29 percent of them work with a financial advisor. While these experts can help you make the most of your investments, you have to be careful to pick the right one.
With all the ups and down of investing, picking a good financial advisor can make all the difference when it comes to growing your funds. Research shows people who work with an expert feel more at ease and end up with 15 percent more money to spend in retirement.
“You want someone to advocate for you, but of all the reasons it’s really beneficial I would say it’s objectivity and accountability.” Ana Fernandez, a Certified Financial Planner and Vice President of Financial Planning at AllGen Financial Advisors says.
But finding the right advisor can be tricky. One common mistake: going with the first expert you meet. You should interview several before making an informed decision. Also don’t choose someone who’s not a registered fiduciary or an expert who is ethically required to act in your best interest.
Fernandez explain that “A fiduciary is held to a higher standard, when they present advice to you, they present advice that is in your best interest.”
Also, make sure you know their credentials. Inquire about licenses and tests they’ve taken and whether they are a certified financial planner. Lastly, don’t be afraid to ask how they’re paid. Some “fee-only” advisors will charge you a flat rate no matter what. Others take a percentage of your assets. And some are paid commissions by mutual funds which can be a conflict of interest.
Don’t skip the hard questions. Ask about your advisor’s specialties. Some concentrate on retirement planning while others spend most of their time managing business owner portfolios. The financial planning association, FPA for short, can help you locate a planner in your area. Visit their web site at www.plannersearch.org.
Sources:
https://www.yahoo.com/now/7-worst-mistakes-people-hiring-122241289.html
https://www.yahoo.com/now/7-worst-mistakes-people-hiring-122241289.html
https://www.plannersearch.org/
Contributor(s) to this news report include: Julie Marks, Producer; Roque Correa, Videographer and Editor.
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