Mistakes To Avoid When Choosing A Financial Advisor (Part 2)
Are you seeking financial services? Meeting with a financial advisor to discuss your finances and develop a plan of action for your finances is critical, especially if you have financial goals that you want to reach. However, finding a decent financial advisor isn’t always straightforward, and if you aren't diligent during your search, you may end up with a financial advisor who isn't reliable or a good fit. Here are some common mistakes that many people make when selecting a financial advisor:
Choosing An Advisor Who Doesn’t Specialize In What You’re Looking For
All financial planners have their own areas of expertise. Some financial planners may specialize in retirement planning, while others may specialize in investments, or college planning, etc. Before you sign any contracts with any advisors, you should make sure to clarify which types of services they specialize in and which ones they don’t specialize in, in order to ensure that you will be in good hands and that you will be getting guidance from a professional in that area.
Not Asking How They’re Paid
Financial advisors are paid in a variety of ways. These can be commissions for selling a product, fees, or a combination. The compensation is separate from investment costs. Some financial planners are "fee only," meaning they charge you a set rate regardless of the outcome. Others will charge you a percentage of the funds you manage. In some cases, mutual funds pay commissions to some advisors, creating a severe conflict of interest. Do not hire a financial advisor if they make money by ignoring your best interests.
Selecting A Financial Advisor Who Isn’t Offering The Best Solutions For You
Every financial advisor has different strategies and approaches when it comes to investments and financial solutions, which is why it’s important to find one who offers solutions that are compatible with you and your financial needs and goals. Some advisors may recommend riskier investments, whereas others are more conservative. If you prefer to invest entirely in stocks, an advisor who prefers bonds and index funds may not be a good fit for you and your financial goals.
If you’re in need of financial planning services, then don’t hesitate to contact Mike Rebischke, the best financial advisor in Rosemount MN, today.