New investors have a sea of information to traverse when entering the investment space. Advancements in technology make it easier than ever to invest independently, but that doesn’t guarantee you will maximize your success.
You can open your own brokerage account or register with a robo advisor if you want to invest without having to leave home. However, hiring a financial advisor takes a lot of consideration and communication to find the right match.
Some wonder if it’s worth the money and commitment to hire a financial advisor in the first place. The answer to that question is yes, according to Jason Hare, a Certified Financial Planner and the owner of Cornerstone Wealth Planning. Hare specializes in business planning, family wealth creation, and protection strategies.
Hare advises that anyone serious about investing should consider the aid of a financial advisor, but to take care before settling on one.
“When it comes to choosing a financial advisor, the old quote says you should choose someone with the heart of a teacher. Someone who won’t just manage the process, but takes the time to help you understand each step,” said Hare. “You want someone who takes your future as seriously as your present, who is dedicated to the long-term and shares your vision. Finding someone of like mind makes things a lot easier.”
It’s an advisor’s job to help the client reach their financial goals, whether that’s short-term or long-term, such as retirement. But finding the right advisor can be a difficult task if you don’t know precisely what to look for.
How exactly do you determine if an advisor is right for you? This article should shed some light and help you find the right fit.
Avoid hiring the first advisor you meet
Like any investment, you shouldn’t be too quick to jump on the first financial advisor you meet. It might be tempting to hire one close to home or the first name to pop up on a Google search. But it pays off to take time and review your options before settling.
Choose an advisor with the right specialty
The world of finance comes with many specialties, from saving to retirement to those who specialize in business or high net-worth management. Others may be better for young professionals looking to start a family.
Taking the time to find the right advisor who specializes in the field most in tune with your goals will save you a lot of time.
Choose an advisor with a compatible strategy
Just as each advisor has a specialty, each will have its own unique strategy. Some advisors may prefer more aggressive investments, while others may be more conservative with investments. If you find an advisor prefers bonds and index funds, while you would rather go all in, you two likely aren’t compatible.
Understand how advisors are paid
Knowing how your advisor is paid is important to avoid any unwanted surprises. Some advisors are paid by “fee only” and will charge you a flat rate. Others will charge based on a percentage of your assets, while others are paid commissions by mutual funds.
Hare’s financial knowledge spans over 20 years, and his mission is to help clients ensure that not only they are taken care of, but so are their families. He says having the help of a financial planner can help ensure things for the future, and prospective investors don’t have to go into it alone.
“It’s easy to think you can do it all on your own, but the truth is, financial advisors live and breathe this industry,” he said. “We spend years and thousands of hours studying our field so we have the ability to best serve our clients. There’s no reason for anyone to have to do this alone.”
Hare’s years in the industry have created a wealth of knowledge that has proven helpful in his personal business experience. He educates his clients to help them achieve their financial goals while minimizing personal risk.