Hiring someone to work for you is almost never an easy task,
especially when it comes to your money, insurance and other personal finances.
It goes without saying that there are many people out there that only care
about making money, making it very important for you to always be cautious with
whom you work with. You always must make sure that the people you are hiring
are on your side and want to do a responsible, high quality job while always
putting your best interests above all else. I could write this and illustrate
all of the fantastic traits I believe a Fund Advisor should possess, but the
truth is everyone is looking for something different and I am not going to
pretend I know exactly what you want. I would rather provide you a guide with 6
tips that I strongly believe can help you in preparation for hiring a Fund
Advisor. Marcel Ramel as a fund advisor plans a suitable investment strategy.
This involves combining different investment options to diversify the portfolio
to minimize risks and maximize returns.
What is great about this approach is that it works if you
are hiring someone for the first time, or looking to make a change to someone
who better suits your personality, goals and objectives. When you purchase a
new car, you usually have an idea of what is important to you such as fuel
efficiency, color, size and price. Well the same should hold true with your
search for a Fund Advisor. These tips are going to help you find what is
important to you, thus narrowing down the possibilities and making your search
more efficient. Efficiency is going to help you move forward towards your
goals, no matter what they are. Please review the tips I have outlined below,
as I believe you will find them helpful:
1. Prepare yourself!
Take the time to really know what you are looking for. Write
down your goals and objectives in advance, along with your reasons for seeking
a Fund Advisor rather than waiting for him or her to ask. Also, remember to have
a list of questions ready for your advisor interviews. Experience has showed me
that most people forget their questions until after the initial meeting,
postponing the search process, decision process and the beginning of working
towards accomplishing your goals.
2. Do not confuse a salesperson with a Fund Advisor:
A salesperson is one who will "sell" you something
and most likely make a large commission from doing so. In many instances they
are directly employed by large investment or insurance companies and are hired
with the sole intention to "sell" that particular company's product
alone. In addition, they may even have minimum "sales" goals they
must meet, prompting them to have that goal in their mind effecting the
suggestions presented to you. You should be looking for an advisor whose only
intention is to lay out a plan that can potentially help accomplish the goals
you have discussed with him or her, whether it is retiring to a beach house
watching the sunset over the ocean or having a stockpile of cash available for
the inevitable day your child steps out the front door to college. He or she
should also have the ability to utilize any investment or insurance option that
is appropriate for you and your objectives, not what they are supposed to "sell"
to you or what they are "allowed" to provide to you that will enable
them to meet any imposed "sales" goals they are working with.
3. Know what fee structure you are comfortable with:
There are many ways fund advisors can be compensated and it
is important to know which you are comfortable with. The two primary methods
are commissions or fees. Some advisors receive a commission every time he or
she buys or sells something for you, getting paid regardless of performance.
This can become quite expensive if your advisor is not completely working with
your best interest at heart, but rather trying to generate income for their
firms. Other advisors receive an annual fee based on how much money you allow
them to handle for you. This is typically more fiscally friendly, but make sure
you agree on the terms in advance because an some advisors do charge excessive
fees. The incentive is always there to put your best interests first, as
declining values for you mean declining fees to them and I do not know of any
mortgage company that will take a smaller mortgage payment from your advisor
because your balance may decline.
4. Decide how local your advisor should be?
Your fund advisor does not have to live in your town, or
even your state for that matter. With today's advancement in technology, it is
easy to work with an advisor who is 10 miles away or 1,000 miles away and not
realize the difference. Cell phones, email, teleconferences, internet meetings
and internet cameras are just a few of the pieces of technology which allow for
that feeling of personal contact at any time and from any location. I suggest
you determine your comfort level and establish a distance you are comfortable
with prior to your search.
5. Do not solely rely on the advice of friends and family:
It is always great to hear an advisor has treated your loved
ones in a professional, responsible and caring manner, but do not use this as
your sole decision making point. Everyone has a different financial situation
and a different personality, so an advisor who excels with your parents, may
not work as well with you. Take the time to ask your friend or family member
questions about the advisor prior to meeting him or her in order to determine
if the fit is right for you, your family and your goals. For example, some
advisors may take an ultra conservative approach to investing which works well
for your parents, but you may be seeking an advisor who specializes in
aggressive alternative investments.
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6. Decide on your investment philosophy and risk tolerance:
Prior to speaking with a potential Financial Advisor,
determine how you and your family feel about investing. Are you comfortable
with major volatility or do you prefer minimal to no fluctuation? A simple way to convey your
feelings to an advisor is on a sliding scale of 1-10, with 10 being aggressive
and 1 being extremely conservative.
Although there are many other tips I can offer,
I feel the seven illustrated above are among the most important to consider
prior to interviewing advisors. Choosing the right Financial Advisor is an
important process and should not be taken for granted. We all have our own
goals to accomplish in life and the right Financial Advisor can play a critical
role in your pursuit of happiness and financial security. Whether you are
looking to retire to that beach house watching the sunset over the ocean or
traveling a path to live a stress and debt free life, working as a team with a
qualified Financial Advisor has the potential to help accomplish this. I hope
these tips help you meet your goals and wish you a prosperous life!
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