Health care and financial handlings are the two major areas of life where we all need expert help. Just like visiting physicians and dentists, getting professional help in handling financial obligations is a great way to handle it efficiently. People get very confused when it comes to a financial advisor and getting paid for handling finances. They get muddled up for the “advisor” and they wrongly confuse it with the word “brokers,” “wealth managers” and “financial planners”. As a financial advisor based on the Sunshine Coast, we have shared the most common mistakes people make when engaging a financial advisor.
- They confuse between brokers with Financial Planners
The very common mistake often people make is confusing between brokers and financial planners. In general, brokers are the persons who handle a very little part of your finances whereas a financial planner is a person who has the charge to look at your whole financial picture right from insurance, tax planning, investment management to estate planning.
- They fail to do a Background Check
As finance-related necessities, you should be very much aware while deciding the advisor for yourself. Most people fail to conduct a reference and background check. To avoid this, you should check the reputation of the financial advisor that you are hiring and make sure that there’s no compliance infraction against the person. Ask for his licenses, tests, and credentials check if he is a Certified Financial Planner or CFP. On the other hand, having references for the financial advisor you are hiring help put you at ease while handing over the keys to your bank account.
- They are unaware of the service and the cost
Another common misunderstanding that people often make is unaware of the services that they’re getting from an advisor and the amount they pay for them. Therefore, clarify the action of the plan and the financial arrangements that are happening on your account and determine the fee for the services.
- They fail to talk about strategies.
It is very important to discuss the advisor’s plan to reach your future goals, his down market abilities, his incompatible strategies, his strength, and weakness. Some financial advisors follow aggressive investments some are very conservative. Choose the financial advisor that goes well with your style.
- Going for the first advisor they meet
While it’s very exciting to hire a financial advisor nearby to your surroundings or the first name in yellow pages, don’t forget to take time for the final decision.
To Sum Up
Hiring a financial planner helps you through the tougher financial situations. And when you look for one, make sure to take enough time and decide the right financial planner. Look for experience, certified, and a well-versed person to handle your situation. If you want to learn more about the financial planner and want to hire a professional financial advisor with years of experience, contact us today.