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How to choose the best financial advisor

Happy young couple discussing with a financial agent their new investment

Happy young couple discussing with a financial agent their new investment

Choosing a financial advisor is one of the very important first steps in a financial planning. Financial advisors will guide you from zero and give you extensive insight regarding the investment world you may never know. They are professional, and like personal physicians, they would be your personal physician who always gives suggestions for your financial health. In this article, we will learn about some of the stages in choosing a best financial advisor for you

Knowing the purpose of investment
This is the most basic step because by knowing your investment objectives, then you can be more focused in finding a financial advisor. Most people make the mistake of choosing a financial adviser without knowing their investment objectives.

Knowing where you can obtain the best financial advisor for you
Ancient way that you can wear is to seek advice from family, friends, and business associates. Although this method is quite old-fashioned but this one is still very effective today. You can also obtain the names of financial advisors from their professional association. By searching through a professional association, then you can check the license of each candidate for your financial advisor. Several different licenses that you can find when you are looking through a professional association is a Certified Financial Planner (CFPs), Chartered Financial Consultant (ChFCs), Personal Financial Specialist (PFS), Certified Investment Management Analyst (Cimas) and Chartered Financial Analyst (CFAS) , You can also find the experience of each candidate that would be selected.

Performing initial consultation
Initial consultation is very important to assess whether your financial advisor is more interested in selling the product than helping you. You can ask questions freely and you can find out the real motives of a financial adviser.

Knowing the mechanism of payment
Financial advisor payment mechanism is varied. A financial advisor can work for a commission or hourly rate. Knowing and deciding payment mechanism are the final steps in choosing your financial advisor.

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