Do you find it hard to meet months end? Are you month after month with your back against the wall after spending the last penny? Stop worrying; there is a solution! Discover the right way through the help of a financial planner. Save and distribute your money where it can grow and add value to your budget. Get advice and use your money smart.
Let Financial Planning Be Your Way to Save
Nadia couldn’t believe it. She bought the plane ticket. Booked the luxurious five-star hotel room and even have a chauffeur pick her up at the airport. It all happened when for some reason, she had extra money available for the month. Unsure how it happened she didn’t let this wonderful dream getaway slip through her fingers. After spending all her extra money, she came back renewed and ready to take on her busy work schedule again.
- Got the Credits? Double check if your advisor has the necessary credentials. It is best to determine whether he/she is NAPFA or CFP certified.
- Paid. But How? The manner of payment does matter. Consider fee-based or commission-based payment. Overall make sure when you pay; your best interests are taken into account.
- Yes or No to Fiduciary? Say yes to fiduciary. It is beneficial for you if your advisor agrees to provide you with guidance that is trustworthy and authentic.
- Does Difference Matter? Carefully inquire whether the advisor can fully assist you with investment and finance as well. In some cases, it is possible, but not always.
- Is the Record Clear? When your money is at stake, you want to be assured that it’s in reliable and capable hands.
- Is it One-On-One? Insist on direct and personal communication. Keep the communication transparent and sufficient.
- How Does It Compare? At least compare two or three advisors before making a long-term decision. It is important to weigh options with regards to benefits, rewards and the service you receive.
#01. Got the Credits?Have your finance in capable hands. It goes two ways: earning the credits and keeping it by regular re-examinations. Primarily make sure the financial advisor has the necessary credentials. A CFP credited planner, which refers to ‘certified financial planner’ has passed the tests administrated by the Certified Financial Planner Board of Standards. CFP’s must commit to regular programs where they receive financial and ethics classes to uphold their title. Or look out for NAPFA, short for the National Association of Personal Financial Advisors. These planners are fee-only orientated, meaning that their income is solely from their clients. No commissions are earned.
#02. Paid. But How?Don’t lose what you already saved. When you are already using a financial planner, you don’t want to spend all your money you saved on financial services. Determine what you as the client are entitled to; what exactly you are paying for; are there any benefits, rewards or after-hours inquiries available? If you pay for a service, use it! Secondly, consider your advisor’s manner of payment.
#03. Yes or No to Fiduciary?We all want our best interests taken to heart. When you hear financial advisor costs, or benefits or guidelines; always look for the word ‘fiduciary.’ It is important that your planner adheres to authentic, believable and credible advice. Read the code of ethics your advisor is subject to. Professional planners should be fiduciaries which mean that the information they give a client should not only be suitable but in the best interest of the customers’ needs. When your finance is at stake, you want reliable and trustworthy guidance that will help you be economically sustainable in the long term; say yes to fiduciary!
#04. Does Difference Matter?Do you want to use one advisor for two different goals? Depending on your position a difference can matter. Let me explain! An investment planner is not necessarily a financial planner. When you decide to use a financial planner, it includes your stocks, mutual funds, bonds or exchange traded funds. Other services such as insurance, retirement, taxes and even estate planning are services best delivered by investment advisers. In some cases, a financial advisor can assist in both fields. If you just started out on the economic front, it is best to receive guidance from both fields; helping you make the right choice financially and when investing.
#05. Is the Record Clear?You probably heard it happened to others, avoid being part of the statistics. Shady deals come in the disguise of the best financial planning advertisement or where you only need to invest the minimum. Always double check and be sure the advisor you work with has a clean record. In many cases an advisor is linked to a company; do research about the standards, ethics, and values of the business. You want advice that will save you in the long term and help you in times of a crisis. Choose a financial adviser with a clear and reliable history.
#06. Is it One-On-One?When it is personal one prefers direct communication, not limited or distant interaction. Your finance is important, that is why you are serious about planning it wisely. Have an honest and open relationship with your financial planner. Before choosing one; determine how appointments are managed and how information is shared.
#07. How Does It Compare?Don’t settle for the first offer that sounds favorable. Before deciding on a financial advisor compare at least two with each other. Keep in mind the manner in which you can communicate with your advisor, do you understand your financial plan and do you know where your money is allocated to? When you are in doubt which advisor to choose, consider the above mentioned 1-6 aspects. Primarily it’s your financial growth and future that are at stake, choose right by choosing smart.
My TakeawaysWould I say yes to a financial planner? If you are able, or not, to invest your money smartly, I would still recommend guidance. We each have a specialized field which you understand best. Stock markets, mutual funds, bonds or exchange traded funds is a field not everyone is familiar with. Rather invest time in getting a professional and reliable advisor that can assist you in saving smart!
Our Advice to You: 7 Need to Knows About Financial Advisors.Choose to be financially smart. But also, be smart when choosing your advice. Rather take extra time and have the confidence and assurance when you follow the advice given to you. Know what to consider when you are searching for a financial advisor. Be clever and keep your standards high when it comes to the following categories.
If the credits fall short and your advisor is not NAPFA or CFP certified reconsider your options. Choose to pay fee-based, and stay in control of your finance. Double check the code of ethics and always say yes to fiduciary. If you are new to the game, have a financial advisor for your financial planning and leave investments to those who specialise in it. Pre-determine whether your advisor has a clean record, he will be working with your money. After considering the above mentioned, compare the service, rewards and benefits before making a final decision.