Creating a financial portfolio suitable for your current reality and your future projections comes with a lot of tedious work. The cheapest option is to do it yourself (DIY); it does come with a great deal of learning and risk-taking.
The aspects of your financial planning handled by a financial advisor could include:
- Retirement Planning
- Tax savings
- Children education planning
- Mortgage planning
- Investment planning
- Vacation/Leisure travels
To choose a financial advisor that could help achieve all these goals efficiently, below are the five things you must consider.
In the financial space, it’s possible to ride on luck while building one’s first portfolio. Lucks fade off as the portfolio expands and market dynamics set in. This differentiates the experienced financial advisor and the amateur.
It is okay to give a newcomer a chance to build his prowess, it is also important to note that hard-earned funds and the family’s future is at stake.
One of the vital things to consider is the vast experience of the financial advisor in the financial markets, and how well they treat clients. Also, it is important to confirm that your financial advisor understands economic cycles and has worked through all of them.
CERTIFICATIONS AND LICENSES
There are different licenses and certifications available to financial advisors. Because the services rendered cut across investments, insurance, mortgage, tax, and retirement, it is great to have a certified financial advisor.
Having a certified expert as a financial advisor such as FundQuest Nigeria gives you the succor that your resources are in safe hands. The wealth of knowledge and ethics that come with these certifications makes it a solid point of reference.
How many clients does the financial advisor currently service?
How large is his portfolio?
What are the performance metrics and how has he fared?
Who are the major clients and how do they rate the financial advisor?
All these are questions whose answers will help you make logical-based decisions around using that financial advisor. Another thing to look out for in this tip is the type of clients serviced.
Specialisation is a thing. Hence, working with financial advisors who have clients whose demographic are in sync with you is a great deal. If they have been serviced well over time, the chances of you getting great service are high.
ANALYTICAL AND COMMUNICATION SKILLS
There is a lot of data to be analysed to arrive at the best possible decisions for your portfolio. Only a sound financial advisor with a great knack for data and high analytical prowess that deduce the best from data.
Also, how well can the information be explicitly explained to you in simple words?
This is where communication comes in. There is a lot of financial jargon that might not be easily understood by you, choosing a financial advisor with great communication skills will bridge the gap.
You can understand clearly when decisions regarding your finances are made when the terms are communicated simply.
Having the best brains to handle your finances comes with a cost – it is known as the professional fee.
It is advisable to have a conversation about fees from the beginning of the relationship, this is so that everyone is on the same page regarding the relationship.
Quality of service, expertise, and experience are core to the difference in what financial advisors charge. Going for the highest fee does not necessarily translate to the best service quality or expertise. The best way around it is to optimize the fees are much as possible.
Your financial wellness is tied to properly handling your finances, and having a financial advisor who understands your goals and expectations is crucial.
While selecting a financial advisor, be sure that you have done your groundwork thoroughly. In simple terms, choose with care.