If you’re reading this article, it’s safe to assume that you know what a financial adviser is, you probably also know that finding the right one for you can be challenging, that’s why we’re here to help.
A financial advisor can be a great resource if you know how to find the right one for you, they can help you make informed financial decisions, identify investment opportunities and understand your risk profile. But most people don’t know how to find the right advisor let alone who they should ask first before talking to anyone else.
Understand the Difference Between Brokers and Advisors
When you’re looking to find a financial advisor, it’s important to understand the difference between a broker and an advisor.
A broker manages other people’s money and owns the securities they’re selling and brokers are usually banks and other financial services companies that want to make money off the assets they manage.
A financial advisor christchurch, on the other hand, manages your own money and is generally not affiliated with a broker, some advisors are broker-dealer members, but others are registered investment advisors who meet certain qualifications and pass an exam.
You can find an advisor using the following criteria:
- What niche are you looking for?
- What are your financial goals?
- What is your risk tolerance level?
- What is your desired investment style?
- What is the fee structure of the advisor?
- Is the advisor registered with the appropriate authorities?
- Is the advisor, someone, you trust?
- Are you looking for a long-term or a short-term advisor?
- Are there any other factors that come into play when choosing an advisor?
Research Advisors Before You Talk to Anyone
Choosing an advisor is a big step and you’ll want to make sure that the person you choose is the right one for you, and not just because they’re the first one you find online, that’s why, before you decide to connect with an advisor, you’ll want to do some research and find out more about them.
Look up their website, read their reviews online, and find other people in your network who have used them. This will help you get a better sense of what they’re like.
One way to find advisors is to use a site like https://bestfinancialadvisors.co.nz/, this site allows you to input your financial information so you can see financial advisors who might be a good fit for you.
You can also use it to connect with financial advisors, request a meeting, and even schedule a call with them.
Ask Key Questions When Interviewing Financial Advisors
If you’re going to interview potential financial advisors, then you should probably have a written list of questions beforehand, this will help you be thorough and avoid missing out on any key details about the person and their services.
You can ask the following types of questions when interviewing financial advisors:
- What is the fee arrangement between you and the client?
- Is it a percentage of the assets under management?
- Is it a flat fee? And how often is it reviewed?
- How often do you review your client’s portfolio?
- What is your investment philosophy and how might it differ from your client?
- What are some of the investments your client should avoid?
- What investments would you advise them to add?
- What are some of the challenges your client is facing that could be causing them to make poor financial decisions?
- How might you help them better navigate these challenges?
