The choices you make now will impact your financial future. Before working with a financial advisor, you want to know that they are the right choice for you and your circumstances. Below, Harvest Wealth Partners explores ten questions that you should consider asking a financial advisor before committing.
Whereas a fiduciary works according to the client’s best interests, nonfiduciaries like broker-dealers merely suggest products that “suit” your situation, even if they aren’t ideal.
Generally, clients wish to avoid unexpected costs when working with a financial advisor. You will have other fees besides paying your advisor, and it’s important to know what these fees include. We can help you determine what to expect.
You may notice that financial professionals often have initials following their names. It’s important to ascertain what qualifications the advisor has. You can also check the Financial Industry Regulatory Authority’s database to learn more about what these designations mean.
Confirm how much access to your advisor you will have. Determine what you can expect as far as availability by phone or email beyond your appointments, as well as how often you will meet.
There are several fee structures that an advisor may use. Many individuals choose a fee-only advisor since they do not receive a commission for selling a product. You can expect to pay an hourly fee, and some fee-only advisors charge a small percentage of the assets that they manage.
Financial advisors often hire an independent custodian to handle your investments, such as a brokerage. It’s important to choose an advisor who does not work as his or her own custodian since this individual can help you execute your financial strategy.
You and your financial advisor should share the same investment philosophy. When you choose an advisor with the same values as you, it increases trust in your relationship, making it more likely that you’ll stick with their recommendations.
You’ve likely heard that portfolio diversification is important. Asset allocation is the means to create a diverse portfolio. Your advisor should help you choose a range of stocks and companies to invest in.
Benchmarks can help a portfolio manager examine the amounts of risk and potential return associated with a given portfolio. A benchmark can serve as a starting point for building a portfolio and indicates how it should be managed. As such, your advisor should use benchmarks or at least provide a solid explanation as to why they don’t.
Ask what you can expect to keep after paying associated fees and taxes, which then gives you an idea of what you are able to keep afterward. Your advisor will keep your taxes in mind as they help you make financial decisions.
If you’re ready to begin strategizing your investments, contact Harvest Wealth Partners for a consultation with a financial advisor.
Harvest Wealth Partners is committed to helping our clients work towards a successful future. We believe in your potential to understand the financial options that can lead you to your goals. Call us today to partner with our team. We look forward to continuing our mission for years to come.
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