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Finance planning is not at all an easy task as your investment will decide the future of your hard-earned wealth. Finance planning is a tough task which needs deep industry knowledge. Therefore, you cannot take the matter of choosing the financial advisor lightly.

Financial Planning Experts

You need to do a double check before you are finalizing your advisor. Remember, choosing a wrong advisor can make your all money a bad investment. Here are a few things that you need to ask your financial planning advisor before handing over all the finance related matter to him.

  • Qualification of Financial Advisor

One of the most essential matters that you must ask your financial planner is about the educational qualification. It also includes the license and certification that he has for doing the work of financial advisor. Financial planning is not a small part so one needs the right competency to reach the benchmark level, where he can advise others to invest in the right manner.

Some of the courses are Certified Financial Planner (CFA), Chartered Financial Consultant (ChFC), and Chartered Life Underwriter (CLU).

  • Experience of Financial Advisor

It is about the financial matter so you need to select someone who has adequate experience to guide you properly. Therefore, when you are selecting someone as your financial advisor, you must ask about him about the experience in the financial domain.

The more the experience is, the chance of error diminishes. With the increasing number of experiences in years, it is assumed that the advisor gained expertise and capabilities to deal with the financial markets and investment allocations.   

Criteria for choosing financial advisor

  • Planning meeting your needs

It is important that both you and your financial advisor must think in a single direction. However, you can judge this by asking certain basic question to your financial advisor. The questions are what the advisor is offering, what type of investment he likes to do such as aggressive or conservative etc. The answers of the advisor will help you to finalize your decision of hiring the right financial planning advisor for you.  

  • Standard Caring

All the advisors in the financial sector used to follow two standard care procedure, these are suitability standard and the fiduciary standard.

According to the suitability standard, the advisors are permissible to sell the different financial products and related services as per the needs of the clients. It is not that if the products are suitable for you means it will give you the best result for you. Overall, the advisors do not have to act in the best interest of their clients.

In the case of the Fiduciary standards, the advisors must be registered with the Registered Investment Advisory (RIA) firms. Hereby, they must act to make sure of the best interest of their clients like giving the financial advice and recommendation to the client for the best outcome.

So, you can understand by now that whom you need to select to get the best advice.

  • Fees

All the financial advisors have their own fees structure. The fees used to vary from one advisor to another. Some of the common ways of fees structure are as follows:

  • Hourly pay
  • Fixed rate for consultation
  • A percentage charge based on the total value of an investment
  • Commission

It is recommended to hire fee-based advisors. In most of the cases, it has been seen that commission-based advisors used to sell wrong financial products to get a better commission.

Final Selection

By now, as you have gone through the whole post, you got the necessary information about selecting the right financial planning advisor. Contact the experienced financial planners of Jarrar CPA to know more about it.

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