Financial advisors are handy for a lot of things. They can help you set up a budget, figure out how to save for retirement, and offer general money advice. But one of the most important things they can do is help you invest your money. That is a lot of control over your finances to hand over to someone else. If you hire Honolulu’s trusted financial advisor, you trust them to make decisions that will significantly impact your financial future. In case you’re wondering, that is a big deal. Of course, you want to hire someone you can trust. But how can you be sure?
Here are a few things to look for or do:
1. Check their Credentials
Before talking to a potential financial advisor, you should check their credentials. In the United States, financial advisors are regulated by the Securities and Exchange Commission (SEC). To become a registered investment advisor, they must pass exams and background checks. They also have to renew their registration every few years.
2. Ask About Their Experience
In addition to checking credentials, you should also ask about an advisor’s experience. How long have they been working in this field? Do they have experience working with people in your situation? For example, if you are a recent college graduate, you will want an advisor with experience working with people in your age group. Try to find someone who has a similar financial situation to yours.
3. Find out How They are Paid
Another critical thing to ask about is how the financial advisor is paid. Some charge an hourly rate, while others pay a commission on the products they sell. Their employer even pays some a salary. It is essential to know how they are paid so you can understand their motivation. A good example is an insurance agent. If they are paid a commission, they may be more likely to sell you an insurance policy than if they were paid a salary.
4. Ask for a List of References
A good financial advisor should have no problem providing you with a list of references. These people have used their services and can attest to their quality. When contacting references, ask about the advisor’s knowledge, integrity, and customer service. Question the reference about anything that makes you feel uncomfortable.
5. Get Everything in Writing
When you have decided to hire a financial advisor, be sure to get everything in writing. This includes the advisor’s fees, the services they will provide, and other important information. This will help protect you if there are any misunderstandings later on. For example, if an advisor says they will provide quarterly reports but only provides them once a year, you have something in writing to back you up.
6. Look for Someone who is a Fiduciary
A fiduciary is required by law to act in your best interests. This means they must put your interests ahead of their own. If they don’t, they can be held liable for any losses you may incur. Not all financial advisors are fiduciaries, so be sure to ask before you hire anyone.
7. Keep Following Up
Even after you have hired a financial advisor, it is essential to keep following up. You should review your investment portfolio regularly and ensure everything is on track. If you have any questions or concerns, be sure to contact your advisor right away. Positive communication is key to a good relationship with your financial advisor.
8. Trust your Gut
In the end, you have to trust your gut. If something feels off, it probably is. Don’t be afraid to walk away from a situation that doesn’t feel right. Your financial future is at stake. Remember, you are the one in control. Everything that happens is ultimately up to you. Try to find an advisor that you are comfortable with and that you can trust. With the right financial advisor, you can reach your financial goals.
What to Expect from a Trustable Financial Advisor
A trustable financial advisor is hard to come by, but it will be worth every penny when you do. Here are some of the things you can expect from a trustable financial advisor:
- Honesty: A trustable financial advisor will always be honest with you. They will tell you the truth, even if it isn’t what you want to hear. They won’t try to sell you something you don’t need or want.
- Knowledgeable: A trustable financial advisor will have much knowledge about the market and investments. They will be able to answer any questions that you have. They should also be able to explain things in a way you can understand.
- Experience: A trustable financial advisor will have much experience. They will have worked with many clients and know what to do in different situations.
- Availability: A trustable financial advisor will be available when you need them. They won’t disappear when things get tough. They will be there to help you through the tough times.
- Patience: A trustable financial advisor will be patient with you. They won’t try to rush you into making a decision. They will give you the time you need to make the right decision.
Hiring a financial advisor is a massive step toward securing your financial future. You want to be sure that you are working with someone who is trustable and has your best interest at heart. The above tips will help you ensure you are working with a trustable financial advisor who will help you reach your financial goals.
