Most Americans don’t manage their money too well. Even if they do have enough disposable income to comfortably invest a sizable chunk of money, they simply don’t know how to properly, safely, and reliably manage investments. For this reason, people visit investment advisors to get help with bolstering their financial security.
Find Out How Financial Advisors Get Paid
Regardless of how good their reviews are online or how much praise for them circulates as word of mouth, figure out how your potential investment advisors get paid. Either they’ll be paid by the hour or by the service provided, known as fee-only pricing, or they’ll be paid commissions on certain assets they’ve been asked to promote by the firms that are issuing them. Fee-only investment advisors are the ones you want to choose. This is because those who are also paid by the commission are inherently incentivized to recommend investment vehicles that are in their own best interests, not necessarily yours.
What Do You Need Help With?
Before consulting a pro, figure out what you need help with. Do you want answers to one or more one-off questions, the one-time creation of a financial roadmap for you to follow, or the long-term management of your portfolio over the long run? For the first scenario, seek out advisors that offer their advice by the hour. The second scenario is best remedied with financial advisors’ help, paid with a flat fee or via an hourly rate. Long-term financial help is paid through forking over a percentage of the value of the assets the advisor manages for you.
Look for Credentials
Find out what credentials like CFP – Certified Financial Planner – stand for by researching them online. In most cases, you are more likely to experience favorable results with well-decorated advisors as opposed to their non-credential-holding counterparts.
Here in Dallas, Texas, our team of financial services experts at Westwood Holdings Group, Inc. can point you in the right direction regarding your financial situation.
