If you are in a situation that demands financial consultation, be weary of the person who you are seeking advice from. Money plays a very substantial part in not only our daily lives, but in our future stability as well.
Just because someone is a self-proclaimed financial advisor does not, in fact, mean that they are actually qualified to give financial advice. Following one piece of poor advice could result in a depletion of your fundamental savings. Trust your gut when selecting a financial advisor for yourself. If you have a distinct feeling of unease or distrust at the very beginning, those feelings are just going to worsen as time passes. It’s better to protect yourself before any damage is done.
How can you find the right financial advisor from you?
There are a few imperative qualifications that you should look for when searching for your financial advisor. Ultimately, the decision is yours to make, but the more experienced and knowledgeable your advisor is, the better advised you will be to make the most informed for you.
Education/Experience
Ask for the educational background of any advisor you are considering pursuing before you make your final decision. Everyone’s financial situation is unique, so wouldn’t you want your financial advisor to be experienced in your specific needs? If you don’t feel comfortable asking them outright, research them online. Their professional website and online persona should be able to provide you with a basis of understanding before you pursue them further.
Additional Certifications
A good financial advisor must continue seek out further knowledge even after graduation. You can do research on what certain certifications mean and what the process to attain them looks like. Some of the top certifications require immense effort, which shows how dedicated someone is to their role.
How They Get Paid
An advisor who works off of commission is a riskier option than one who gets paid hourly or a fixed fee. If they are working for commission, more conflicts of interest tend to arise because you often don’t remain at the center of their focus.
Your Financial Future
Another attribute that not many people think to look for is transparency. A good financial advisor will work hard to help you understand the work they are doing for you so that, in the future, you will be able to come more financially independent. Be wary of advisors who tell you that the process is too complicated that you will never truly be able to do it without their input. These advisors may just want to continue to make money off of you, rather than give you a foundation to build from on your own.