Increase your retirement savings by 400% with one simple step. Sounds like a scam right? However, research has shown that using a financial advisor to help you create a written savings plan could increase your savings balance four times compared to those who go it alone. You don’t need to feel overwhelmed when finding a financial advisor. Asking a few simple questions first will help you find the right advisor for you.
What can you do for me?
Financial advisors offer a wide range of services from creating a long-term financial plan to picking individual stocks for your portfolio. Some will have industry specialties, such as financial planning for professional athletes, to offer an experienced perspective on your unique situation. Outlining the basics of the services they provide and who they typically provide them for is the first step to know if that advisor is right for you.
What is your communication style with clients?
Letting someone take a peek at your personal finances requires a lot of trust. Communication is critical to building and maintaining trust. Getting to know your financial advisor’s communication style before you commit can save you stress and anxiety. A good financial advisor will adapt their communication style to your preference allowing you to have as much or as little detail as you desire.
How do you get paid?
Paying too much for a financial advisor can cut into your hard-earned savings. Understanding how and when your financial advisor gets paid helps you know you are getting value for your money. Typically, advisors get paid a percentage based on assets under management, a commission for investment products, or a fee for each service they provide.
You work hard for your money. You owe it to yourself to find a great financial advisor who can make that money work for you. These questions are just a starting point on your journey to financial freedom.