Hiring a good financial adviser is almost as vital as the decision to save. He is the person who can guide you towards the future that you have always dreamed of while a wrong one can create havoc with your finances. There are numerous factors that you should consider before hiring your financial adviser, and some of them are explained below:
In the scenario of financial advising, the experience is very important, so if you are planning to hire a young professional,re check their qualification and portfolio. The more clients that a planner has helped, the more capable he will be to help you. The number of customers, give you an insight into the management and skills of the professional.
It is easy for any layman to call himself a financial planner, so it is crucial for you to be sure of his qualifications. A qualified planner always has a degree and a registration number with a reputed organization. You have every right to ask him about his qualifications.
3. Services offered
You should be certain of what all services that you are going to need and you should convey it to your prospective financial adviser. Ask the adviser if he is experienced in providing the services you need and whether he can meet and exceed your expectations. This will help you to have only realistic expectations.
4. Approach to work
An adviser can work either on a per-project basis or an hourly basis. Choose an approach that best fits your budget. Usually, those charging an hourly charge are expensive in the long run.
5. Personal attention
Many financial advisers work alongside assistants. Ask your financial planner if he would personally handle your finances or his representatives will work for him. If your portfolio is assigned to his interns, ask him about what his review procedures are.
6. Payment criteria
Three different modes can pay a financial planner: A fixed rate A commission from the interest A combination of fees and commission Be sure to finalize the terms, conditions, and payment plan in your agreement. Avoid choosing the financial adviser that asks for advance money as there might be something fishy.
7. Ask for his personal interests
Financial advisers often receive incentives from companies for selling their commodities. Even though this is totally normal, some advisers may be tempted to sell bad products or products which are not suitable for your portfolio. Openly ask your adviser if he a member of such programs.
It is crucial to consider the reputation of the financial adviser before hiring them. The best way is to look for the reviews online. Nobody other than the existing clients can give the honest reviews, so get in touch with them to find their opinion.
Ensure that all the terms discussed are in written form. It should contain both signatures and be kept with you for reference. Since it is extremely difficult to trust a stranger with the finances of your life, you should try to get some references from someone whom you know is taking the services of a financial planner.