Five Ways To Rate Your Financial Advisor

Hiring a financial planner is the best decision you could ever make. Good planners can actually double your income and make sensible decisions for your retirement and your children. They can help you invest, save and grow your money while providing a micro and macro view of the how your investments will earn over your lifetime. Of course, you do have to pay the financial advisor but when you consider the benefits, it is well worth the cost.

How to choose a financial adviser

1. Start by evaluating the financial advisor websites — Bather as many references as possible. Customers who are happy with their advisers will provide testimonials and references. The easiest way to check these testimonials and references is by checking the personal financial advisor website. Most good consultants will advertise their services and list their customer testimonials and references on their website. We recommend that you evaluate the site and make an informed decision.

2. Look for a clean record of accomplishment — Talented advisers are usually very careful about their investments. However, it is entirely possible that the adviser will have pending customer complaints against them. We recommend that you check with the state financial authorities, the BBB and verify the consultants, ADV Part 1 certificate with the SEC or the Securities and Exchange Commission. The advisor should also have a Certified Financial Planner, or CFP® Professional degree. The financial authorities recognize this degree and it means that the adviser has to follow certain legal and ethical standards.

3. Evaluate the Financial Advisor Websites for their investment strategy — Good advisers are always upfront about their investment procedures and they discuss the risk that is apparent on the investments they make. Another point to consider is that most advisers specialize in one type of investment option. They may choose private funds, mutual funds or even stocks. You may not understand the process but you should understand where your money is being put and what you are getting from it.

4. Contact procedure and payment — Reliable advisers have a process by which you can contact them and set up an appointment. Discussing your finances in a professional setting is much better than sitting in your home or at an office. The adviser should also list his contact address, telephone number, email and residence on the website to assure the customer of reliability.

However, a word of caution: every Tom, Dick and Harry can call himself a financial advisor but you, as the consumer, have to be aware of what you are getting. You cannot choose anyone to handle your investments and your money and you require a trained professional who has the degree and the knowledge to deal with fluctuating financial markets.





Author: Irfan Uddin