How to choose the best financial advisors for your needs

0
23

How to choose the best financial advisors for your needs.

Financial advisors are necessary for those that seeks to set and achieve their financial goals, they point out dark spots that you would normally not notice, gives you a better sight on finance, and helps you improve in a way that fits your budget and expenditures. In choosing a financial advisor, there are basically two (2) options, the first being a robo-advisor and the second being a human specialist.

It is also possible to have both robo-advisors and financial human specialists together, some do start with a relatively cheap robo-advisor and then graduate to hiring a financial human advisor for better efficiency and output, as establishing trust and confidence in your financial advisor is one of the factors that makes the client feel that their financial future is in safe hands, this can best be achieved via a human advisor.

Here are a few things you need to know before finally settling down for your human advisor:

  1. You should be sure of exactly what you require from your financial advisor.
  2. You should understand your financial advisor business model, know whether it is commission-based, fee-based, or fee-only.
  3. You should make a list of questions you want to ask, this is to ascertain if the person you want to hire is truly a certified financial advisor.How to choose the best financial advisors for your needs.

Financial advisors are necessary for those that seeks to set and achieve their financial goals, they point out dark spots that you would normally not notice, gives you a better sight on finance, and helps you improve in a way that fits your budget and expenditures. In choosing a financial advisor, there are basically two (2) options, the first being a robo-advisor and the second being a human specialist.

It is also possible to have both robo-advisors and financial human specialists together, some do start with a relatively cheap robo-advisor and then graduate to hiring a financial human advisor for better efficiency and output, as establishing trust and confidence in your financial advisor is one of the factors that makes the client feel that their financial future is in safe hands, this can best be achieved via a human advisor.

Robo-advisors

People who majorly uses robo-advisors are those who are ready to invest but are not financially buoyant enough to pay for a full financial advisor, these robo-advisors are managed by financial companies using tested and trusted algorithms to provide financial advice that is in tandem to a particular situation.

They charge fees as low as 0.25% and the highest is around 0.50% of your balance, most robo-advisors doesn’t have a minimum balance, so you can invest with a minimal amount of money.

They are also helpful in gibing retirement advice, when you set up a retirement account with it, they can advice you on how to save for retirement which would be in tandem with your income, age, and specific overall goals. Some also offers access to human advisors whenever you have a question, although this is when you invest an amount in the company or pay an extra fee.

We have reviewed the most used robo-advisors and have come up with our own best robo-advisors that we advice our esteemed readers to use, they are:

  1. Wealth fund with a 0.25% management fee, an account minimum of $500, and a promotion of $5000 amount of assets managed for free.
  2. Betterment also charges a management fee of 0.25%, and an account minimum of $0, and a promotion of up to 1 year of free management with a qualifying deposit.

Human advisors

Human advisors aren’t so difficult to find, but finding a qualified human specialists is a story for another day. Here are a few things you need to know before finally settling down for your human advisor:

  1. You should be sure of exactly what you require from your financial advisor.
  2. You should understand your financial advisor business model, know whether it is commission-based, fee-based, or fee-only.
  3. You should make a list of questions you want to ask, this is to ascertain if the person you want to hire is truly a certified financial advisor.

Here are a few trusted company that you can be sure to meet your needs.

  1. XY planning network

This is designed for generation X and millennials that are in the search of cheap, affordable, and professional advice, all listed advisors are free except for “Certified Financial Planners” that have a fiduciary duties towards their clients.

  1. National Association of Personal Financial Advisors (NAPFA)

NAPFA is a body that accredits financial advisors, they require a minimum of three (3) years of experience from financial advisors, they also require them to be fiduciaries, and must have been approved by a peer review. Advisors accredited by NAPFA specializes in areas such as LGBT couples and families, professional athletes and entertainers, socially responsible investors, etc.

  1. The Garrett Planning Network

This is a very wide network and anyone in this network has to be a Certified Financial Planner™ or already close to having their CFP® license, must have a fee-only payment structure, and charge on an hourly or retainer basis.

Reference

Zina Kumok: How to Find a Financial Advisor That Meets Your Needs

https://www.dollarsprout. com/how-to-find-a-financial-advisor

Arielle O’shea and Andrea Coombes: Best Financial Advisors: Find the Right One for You

https://www.nerdwallet. com/blog/investing/find-a-financial-advisor