When in the market for a financial advisor, one size does not fit all. It’s important to remember that every person has different, specific financial needs and goals, making their need for a financial advisor specific as well. Finding an advisor who fits the needs and goals of a financial plan can make or break the success of the client. To be successful in finding the right person for the specific financial plan, there are a few questions one must ask. Below are five questions for the initial meeting:
1. Are you a fiduciary and what is the cost? If unfamiliar with the term, a fiduciary is legally appointed and authorized to hold assets in trust for another person. In short, this type of advisor is legally obligated to put client needs above all else. It’s important to bring up the topic of compensation early. Getting this conversation out of the way allows for more open and honest conversation about products and services. Knowing how the advisor is paid, and how much, helps to provide clear expectations. Be sure when talking about cost to ask about hidden fees.Especially beware of seemingly low fees. A fee-based advisor usually has a tier structure based on the size of the account. Be aware that most fees are disclosed and discussed before any agreement is signed.
2. Why did you want to be a financial advisor? Finding out why someone decided to become an advisor can provide insight into how they will help their clients. Someone who is motivated to help the client and not just the account can indicate their reasons for getting into the business to begin with.
3. What credentials and licenses do you have? Not everyone has the right knowledge to be a financial planner. Some certifications to look forinclude a PFS or a Personal Financial Specialist, a credential from the American Institute of Certified Public Accountants; ChFC or Chartered Financial Consultant, a credential offered by the American College of Financial Services and typically used by those in the insurance industry; and a CFP or Certified Financial Planner, from the CFP Board of Standards. These are a few of the certifications that indicate how the advisor has been trained and should be a knowledgeable professional.
4. What is your investment approach? Paying attention to this question could determine how successful your financial plan is in the long run. Markets change over time, and if the advisor doesn’t have a viable financial strategy to guide the plan, it could mean less money for you. In addition, look for a financial planning firm that offers services you might need in the future, beyond the scope of your initial consultation. Nicholas Wealth Management has a list of services to research on our website before coming to the initial meeting.
5. How often will we be in contact? Will that be with your financial advisor or with another team member? It’s important to find out up front if one financial advisor, or members of a team, will be contacting you.
Building a healthy financial future is important, and these questions can help move an account in the right direction. The right financial planner could be just five questions away.
Securities offered through TCM Securities, Inc. Members FINRA – SIPC. Advisory Services offered through Triumph Wealth Advisors and BluePath Capital Management.
The access and use of any product, service or links on this website is subject to the terms of this Disclaimer. David Nicholas & Nicholas Wealth Management shall not be liable for any damages arising out of your reliance to any information provided here. The information and materials provided here, whether supplied by a third party websites, marketing materials, newsletters or any form of publication are provided for general information and circulation only. None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any product or financial instrument. It does not take into account of your personal investment objectives, specific investment goals, specific needs or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information provided here. The information and publications are not intended to be and do not constitute investment advice, and does not warrant that such information and publications are accurate, up to date or applicable to the circumstances of any particular person. Any expression of opinion is subject to change without notice and is personal to the author and the author makes no guarantee of any sort regarding accuracy or completeness of the information provided. You should not make any investment or financial decisions, without undertaking independent due diligence and consultation with your financial advisor.
This blog is designed to provide general information on the subjects covered. It is not intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Nicholas Wealth Management and its affiliated companies, and their representatives and employees do not give legal or tax advice. You are encouraged to consult with your tax advisor or attorney.
Annuities are generally considered long-term investments. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is not a registered security or stock market investment and does not participate directly in any stock or equity investment or index. Annuities are not deposits of or guaranteed by any bank and are not insured by the FDIC or any other agency of the US. All guarantees are solely backed by the financial strength and claims paying ability of the issuing insurance company. Insurance products, including annuities, are offered through David Nicholas, a licensed insurance agent in the state of Georgia.
Ready to Take The Next Step?
For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.