How to Choose a Financial Advisor.
Considering how important financial investments are, when selecting a financial advisor it is important to interview a few before settling for one. Below are important questions you can ask a potential financial advisor to determine if they are the right fit for the job.
It is important to ask the financial advisor about their qualifications. For one to qualify as a financial advisor, they must be a certified financial planner. What are the current courses that the financial advisor has undertaken? A good financial advisor will keep taking up courses that will improve their knowledge in the field.
For one to qualify as a financial advisor it is a requirement they be licensed, ensure the advisor you are planning to deal with has been licensed. A good advisor will not hesitate to show a copy of their license, ensure the license is current and legit.
Something else you should find out before you settle for a financial advisor, it’s the rate they charge. Don’t start any business with the financial advisor before knowing how much they charge. Some financial advisors will charge you a fixed fee, while others work on percentages depending on the investment. Not discussing this with your financial advisor can bring conflicts in between.
For some financial advisors they work directly with their clients, while for others they have a team that the client will work with. In case they have a team, ensure you meet them before you sign the contract.
It is important to confirm if the financial advisor will sign a non-disclosure agreement. Your financial should avoid disclosing your finances to third party, the only people they should know about your finances are the companies or industries that you will invest in.
How long has the financial advisor been in business? It is advisable to choose a financial advisor that ha more than 3 years of experience. Such an advisor has diverse knowledge in the field and they will give you the best advice.
Another thing you should look out for, its if the financial advisor is trustworthy. A reputable advisor will put the interest of the clients before their own. For any investment that the financial advisor advises you to invest in, they should do that because they know there is a high possibility you will get good returns, not because they will benefit from it in one way or another. The financial advisor should communicate with you at all times and guide you on your investments.
When looking for a financial advisor, do a research on them on the internet. Check if the financial advisor has any pending cases for ethical conduct issues.