Any time you hear of portfolio management services or wealth advisory services, you immediately may come to the conclusion that it is geared towards individuals who already have a fortune built up. However, that's not the case! In fact, those types of financial planning services are easily attainable to the average person because they can be applied to a number of situations. Perhaps your family has just welcomed a newborn baby or you just started a business or you are just unsure about your financial future...these kinds of money uncertainties can be guided through with the help of a financial planner.
Many of us assume that financial planners only work for those who have assets and a stockpile of money lying around but that's not true because there are fee-only wealth management firms that work with all types of clients in different financial situations. While there are firms that will set requirements of their clients to have minimum amounts of income or net worth, there are firms out there that will work with anyone, regardless of how much money they do or don't have. This means you can start building a stable financial plan without needing fortune to start! Read on to learn more information about fee-only financial planners.
There are two main types of financial planners, one of which is fee-only and the other is commission-based. The focal thing to understand is that fee-only financial planners are not motivated by sales or commission, which means they typically will offer you more sound advice when it comes to managing your money. In fact, an article from Forbes reinforces the concept and states that fee-only advisors have fewer inherent conflicts of interest and provide more comprehensive advice. While commission-based agents and brokers can provide sincere and honest work, the temptation to fuel their own bottom line will always linger.
All of this means that a fee-only financial advisor is affordable and will offer genuine help to manage your finances. So, with all that said, how do you find the right fee-only financial advisor for your specific situation? Let's break down a few key concepts you need to take into consideration when looking for a fee-only financial advisor!
It is important to note that past performance is not a guarantee of future results, however, learning about their previous performance can give you some insight on their work ethic and skill. You can get an idea of how they've generated meaningful results in the past and learn about their strategies. Additionally, you can examine the financial planners' strategy to understand how much risk they incorporate into their plans and see if their behaviors fall in line with your financial goals. This is extremely beneficial if you are also considering portfolio management services.
When you are researching information on a financial planner, it's imperative to know the fees associated with their services. It is not advisable to engage in their services without this knowledge and a good financial planner should be able to give you their fee information upfront. Think of it like cooking a meal - you need all the ingredients to make the dish - so find out the fees before you accept their services.
When you put someone in charge of your finances, you want to make sure you are informed of the latest things going on. This is especially true with portfolio management because you want to see where you money is going and if it is growing. With that in mind, find out how often the advisor will communicate with you - is it over the phone on a weekly basis? Daily email correspondence? Depending on how informed you want to be, it is important to figure out from day one so you can set your expectations accordingly.
With all of the above information, you can know think about your financial future and how a financial planner can help you through it all!
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