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How to Find a Financial Advisor

Some things in life are too scary to confront. Debt is one of them. For instance, they let the interest payment on their credit cards continue to accumulate because they insist on paying the minimum amount.

Waiting for the monthly bills has become a stressful endeavor. So, they leave the envelope unopened.

However, you have to face the music sometime. Your problems would not go out on their own.

One solution is to get the services of a financial advisor. Someone who can help make sense of your income and expenses--an expert who can provide illumination when you have long been struggling to gain a foothold in the dark.

If you are wondering how to find a financial advisor, read on:

According to a CNBC report, three-quarters of Americans are managing their household budgets. Only about 17% of respondents claim that they are seeking the help of a financial advisor.

The survey results are alarming when you take into account another report. CareerBuilder said that almost 8 in 10 workers in the United States are living from paycheck-to-paycheck.

You can look at the two reports in two ways:

  1. Americans are not interested in how to find a financial advisor because they think they have no extra money to pay a professional.

  2. Second, the reason Americans find themselves living from paycheck to paycheck is that they insist on following the same path without much success.

Who was it that said, "insanity is defined as doing the same thing repeatedly and expecting a different result every time?"

How can you benefit from the devices of a financial advisor?

  • Craft a financial program to get you out of debt.
  • Help you manage your household budget.
  • Work with you to address your money woes.
  • Make sure that you are following the financial plan
  • Help you invest with confidence, especially if your hard-earned money is at stake.

Tips in Finding a Financial Advisor

  1. Decide on the type of arrangement you are comfortable with. Some financial advisors work on a flat fee, while others earn money through commissions.

  2. Determine your goals. Are you looking for a financial advisor to help you manage your investments? Do you need help with your 401K?  Or are you looking for help to manage your budget? For assistance with your household expenses and managing your debts, the consultant will charge you by the hour. For managing your investment portfolio, they charge on a commission basis. The fee is typically between 0.5-1% of your total investment portfolio per year.

  3. Do a background check. A simple search on Google should yield several results. Pay closer attention to any scandals, controversies, legal problems, or customer complaints involving the financial advisor. Of course, do not dismiss the consultant outright if you read a negative review. Nobody can please everybody. Consider the good and the bad, and weigh your options. If the benefits outweigh the drawbacks, then you are on the right track.

The term financial advisor is being used loosely in the industry. For instance, investment managers, insurance agents, and stockbrokers are referring to themselves as financial advisors. It is the reason why you should first determine what you require, so the search for the professional to fulfill that need becomes easier.

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