Saving more for retirement doesn’t need to be difficult. In fact, there is an easy way to increase your retirement savings by 400%. This isn’t a get rich quick or a pyramid scheme. Research shows that having a financial advisor help create a savings plan results in 4 times greater savings. Finding the right financial advisor for you is easy if you know which questions to ask. Here are the best questions to ask to find the right advisor for your situation.
What Are Your Qualifications?
There are many education levels within the professional of financial advisors. Work to understand what exactly your advisor did to become qualified to give you financial advice. If you aren’t familiar with the terms and initials typically used within the financial sector, The Financial Industry Regulatory Authority’s database can help to familiarize yourself.
What Services Do You Provide?
Not everyone needs a full-service financial advisor. Knowing what services your advisor usually provides will help you know if they are a suitable fit for you. Some offer special industry expertise, such as financial planning for professional athletes, that may better serve your unique situation. Keep in mind that your financial needs may change with time. Your financial advisor might provide services you don’t need right now but may benefit from in the future.
How Do You Communicate With Clients?
Communication is key to building a trusted relationship with your financial advisor. If you don’t read your email very frequently but that is their main form of communication, you may have a mismatch. Finding a different advisor would better serve your needs. Once you have committed to a relationship, communicate the amount of detail you are comfortable with and expect in your plan. It also helps to state how frequently you want to be updated on your account to ensure your relationship runs smoothly.
How Are Fees Charged?
Using a financial advisor should increase your savings, not whittle them away with fees. It’s important to understand when and how your advisor gets paid. This way you can establish if you are getting the appropriate value for your money. Usually, advisors will get paid based on a commission for investment products, set fees for each service, or a percentage based on the value of assets they manage in your account.
You’ve worked hard for your money. Working with a professional can maximize the amount your money works for you. Start the relationship with your financial advisor off right by asking the important questions beforehand.