Be Financially Smart and Independent By Hiring the Right Financial Advisor

A notion that only large organizations or rich people need financial advice is not true. Everyone desires to be happy and comfortable with financial security at any stage in their life. The escalating complexity of current world’s economy makes it hard for average wage earner to take decisions regarding their retirement plan, student’s loan or buying a house.
Even graduates trained in finance can fall behind. Youths in particular are unaware about the compounding interest theory. The earlier you start saving, the more secured you will be at the time of retirement. Therefore, it is wise to hire a reliable financial planning services provider.
Role of a financial advisor
Financial advisors are well-trained to evaluate your personal financial status and design a program on how to deal with your monetary goals. In order words, they are doctors, who take care of your financial health. They have attained either CFP or ChFC certificates. Both are accredited study courses for financial consultant designation.
All kind of professions are related to financial well-being, so these advisors are trained as lawyers, accountants, stockbrokers or insurance providers. They specialize in estate & trust planning or retirement planning.
Benefits of Hiring a Professional for Your Finance Management
Financial matters are complex and confusing. An expert can assist you in an array of processes from assessing, analyzing to pursuing your goal.

• Evaluate your risk tolerance
• Scrutinize your resources
• Assess current asset allocation
• Consider your tax liability
• Make investment recommendations
• Create a written financial plan

Building relationship
A relationship with the advisor commences from the very first meeting. It may not be easy to give out complete details, but you need to be prepared to answer the following questions.

• When do you plan to retire? Do you have retirement savings? How do you desire to retire?
• What is your financial status? Do you expect to change in job or start new business or stay home with kids?
• Do you plan to fund your kid’s education?
• In case you lost the current job or suffer from serious illness or meet with an accident, then are you prepared to face the unexpected financially?
• Have you made a will? Have you considered tax implications, when you transfer your estate?

What will be included in the financial plan?

• Ensures you have adequate insurance
• Enough cash to meet sudden monetary needs
• Short & long term goals
• Suitable investment recommendation
• Suggest investment of possible future assets
• How much to save for attaining financial goal?

How to make use of financial plan?
The plan gives you an insight of your current financial status and future goals to achieve. This knowledge can influence your strategy to earn more and build a strong future. Remember to review your financial plan every year.
In case there are changes in your conditions, update the advisor, so that plans can be modified accordingly. Even the advisor will keep you updated about the changes in market conditions, legislation or economy. This can influence the advice and investment products they recommend.
Charges of financial advisors
They are basically compensated in any one of the 3 ways –

1. They charge hourly fee for giving their services
2. They give advice for free but charge commission on investment products transaction
3. They charge both fee and commission

The vital thing to remember is to determine how much involvement one desires from an advisor and how much will it cost.