It is common for most beginner investors to often ask if it is really necessary to hire someone who are well-versed in dealing with financial matters – like financial advisors. Although, they find it costly, however worth it. Now, if you’re planning to hire one, here’s a helpful and feasible tips from businessinsider.com to consider:
Choosing a financial advisor is a big decision.
Being aware of these seven common blunders when choosing an advisor can help you find peace of mind, and avoid years of stress.
1. Hiring the first advisor you meet
While it’s tempting to hire the advisor closest to home or the first advisor in the yellow pages, this decision requires more time. Take the time to interview at least a few advisors before picking the best match for you.
2. Choosing an advisor with the wrong specialty
Some financial advisors specialize in retirement planning, while others are best for business owners or those with a high net worth. Some might be best for young professionals starting a family. Be sure to understand an advisor’s strengths and weaknesses — before signing the dotted line.
3. Picking an advisor with an incompatible strategy
Each advisor has a unique strategy. Some advisors may suggest aggressive investments, while others are more conservative. If you prefer to go all in on stocks, an advisor that prefers bonds and index funds is not a great match for your style.
4. Not checking references
Most advisors are happy to offer references to prospective clients. Calling references only takes a couple of minutes, and it can help put you at ease when handing over the keys to your bank account.
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