A recent post on Sum180 encouraged the use of a Financial Advisor. I plan to take this advice and replace my current advisor who has not reached out to me in over five years. Quite honestly, I need more attention than that. So how do you go about finding a Financial Advisor? Are there questions to ask an advisor to gauge their effectiveness? What about fees? Is there a standard for how they charge? Any advice is appreciated.
Suzanne, we basically use two advisors in our home. We are a blended family and both my husband and I had our own advisors before we wed and since we are both happy with who we have worked with we have not merged. My husband’s advisor is your traditional advisor with a brokerage firm. This man calls at least twice a year and comes to our home for a sit down meeting once a year to review current investments and goals. Mine is a team comprising of a financial advisor and accountant based out of an accounting firm. They too call once a year and I sit down with them once a year to review the numbers and make adjustments if necessary.
We work with people that we believe really care about our financial future, take the time to talk and listen to concerns, answer our questions, and offer us their insight. As far as fees – the broker is paid per trade and much of the money is in various funds that have their own fees (they vary – mostly no load funds). Mine is paid as a percent of money managed. Similar to the management fees of mutual funds.
My best advice is to get local recommendations, and interview a few to find someone that you think is very knowledgable and trustworthy. Good luck!