Getting a piece of suitable financial advice is more than just about stocks and bonds. It is more about the relationship you have with your financial advisor and the trust you have in them.
But how do you know if they are the right fit for you?
Here’s how to evaluate whether your financial professional is up to the mark or not. There is a diverse range of financial advisors in the market, all thanks to steady technological advances. The stereotype of a besuited man behind a mahogany desk is now long gone.
Now, you have the option of getting advice from AI tools to your friendly neighborhood independent adviser like David Snavely to everything that comes in between.
Despite this array of choices, it can be challenging for people to figure out what their adviser can offer compared to other advisors. But how can someone measure the expertise and talent of a financial advisor? There are various market benchmarks that can be used as a measuring stick,
These measurements can help you get the answer to the most important question:
How do you know if your adviser is doing a proper job?
Is he or she the right fit for you and your family?
Well, there’s no one right answer for everyone. However, finding out about some key traits when evaluating their adviser can help you big time.
Holistic Thinking: Most people think about investing in stocks and bonds for the right portfolio when they begin to think about financial investments. However, a good financial adviser should give you a broader suite of advice as per your needs. A good adviser should be able to consult and trade for you.
Easily Established Trust: You must find an adviser with whom you feel trusted. Your financial future depends on their advice, so the stakes are always high when money is involved in a process. The adviser needs to understand who you are and what you want to achieve. Make sure that the person is a certified fiduciary with a legal obligation.
Transparent Pricing: Financial advisers make money by getting commissions or getting a fixed amount from their clients. They do not work for free; some of them charge a percentage of your investment asset value. However, these add-on fees and other hidden charges. Make sure your advisor has total transparency on fees.
Proactive Advice: If you find the onus is on you to find new investment strategies, then they are probably doing a great job. Advisors like David Snavely are the one who comes up with new ideas and not the other way around. Good advisers regularly update their clients on financial topics, market changes, and tax-saving ideas.
Responsiveness: Advisers should also be fast on their feet to react to responses and make new strategies if there are changes in their clients’ plans. David Snavely quickly plugs in and analyzes the impact of clients’ new plans on their long-term financial goals. They have an annual review to assess any changes in your risk tolerance.
The Ability To Say ‘No’: Having an adviser who always agrees with your ideas and plans can make for terrible financial planning. You hire them for a reason — to get the best and most honest advice based on knowledge and experience. They have the responsibility to ensure your long-term financial independence. It includes sometimes disagreeing with your plans and backing up their view with well-researched advice. They need thoughtful considerations and questions for an updated financial plan.
Financial planning is a more than one-size-fits-all service. A style or strategy that works for one client might end up taking losses for another. Every financial adviser needs to come up with custom plans for every client. These traits can help you big time; if your advisor doesn’t have them, it may be time to switch.