Featured Videos
Top 10 Mistakes Made When Hiring a Financial Advisor
- A financial advisor can help you meet your financial goals. You need, however, to take an active part in the relationship. Below are some of the common mistakes people make when hiring such an advisor.
- Not checking out his or her background. There are many excellent financial advisors who can help you plan your investment strategy and prepare for your retirement. It is a mistake, however, not to check out the background of someone with whom you are placing such valued trust. Unfortunately, unscrupulous advisors do exist.
- Not checking references. Ask for references and call at least two of them to discuss their experiences with the advisor.
- Going with the first person you meet. A financial advisor needs to understand your specific goals, needs, and level of risk. Therefore, you should meet with at least three possible advisors, if not more, before deciding with whom you will work.
- Hiring someone who uses a blueprint plan. In your research, you should talk to some of the advisor’s other clients. If you find out that he or she is offering the same advice to everyone, then you will likely want to work with a different advisor. Remember, there is no one-size-fits-all approach to financial planning. Advisors who sell everyone the same investment vehicles are likely getting a commission from the products.
- Not asking a lot of questions. Too many people become passive around financial advisors. It is important to ask questions and determine what his or her plan of action will be and how your money will be invested. Prepare yourself by making a list of questions before meeting a financial advisor.
- Failing to establish a good rapport. It is important that neither you nor your spouse feel intimidated by a financial advisor. Make sure you feel comfortable discussing your finances in an open and honest manner. If you have doubts or feel intimidated, you should work with someone else.
- Not providing full disclosure. If you do not provide the advisor with your overall financial picture, then you are not taking full advantage of his or her expertise.
- Failing to clarify the financial arrangements ahead of time. You need to determine ahead of time whether you are paying a flat fee, a commission based on the total assets, or a commission based on each transaction. Commissions per transaction can be tricky, and you will need to watch carefully to make sure he or she is not making transactions for the sake of commissions, a process known as churning.
- Failing to discuss philosophies. In addition to finding out how the advisor plans to help you reach your goals, you also want to discuss how he or she handles a down market and deals with other changes in the overall economy. Get a feeling for his or her overall philosophy -- very conservative, very aggressive, somewhere in between?
- Blindly following. Your financial advisor is working for you. It is your money, and you cannot turn a blind eye and simply assume that everything he or she says or does is the best move. A common mistake is blindly following whatever advice you are given. Ask questions so that you understand why he or she is making specific recommendations.
For more information, check out the AllBusiness.com Personal Finance Center.
In addition, make sure to read these articles:
- Hiring a Personal Finance Advisor
- InvestmentPitch.com Launches Video Driven...
- Banker's philosophy on money matters
- UBS Reaches Settlement on Wage and Hour Litigation.
- Investors proceed with caution. (Business Trends).
- SA Telecommunications Announces New Financial...
- Who needs a financial advisor?
- Long Island Financial Briefs: January 13, 2006
- Global Committee of Argentina Bondholders...
- Examining the role of a financial advisor.
- CFP Board Governor to Discuss Effective Marketing...
- 1st Global Launches New Affiliate Internet Site;...
- New Morningstar Service Now Available to San...
- Reaching High Level of Assets Tops List of...
- Vignette Banks On Financial Advisor Suite.
It's time to decide what kind of financial planner you need.
VANCOUVER, British Columbia -- IPE InvestmentPitch Enterprises Ltd launches its unique, new streaming video lead generation tool for financial advisors. An advisor can have a ......
In these days of financial scandals and market-induced mood swings, a degree in religion and philosophy could be considered a definite asset for a financial ......
NEW YORK -- UBS AG announced today that it has reached agreement in principle to settle class-action wage and hour claims filed in several ......
Meet the new financial services industry, where companies value trusted relationships and safer investments. Frequent financial market drops, and the subsequent decrease in income for ......
PLANO, Texas--(BUSINESS WIRE)--April 3, 1995--SA Holdings Inc., d.b.a., SA Telecommunications Inc. (NASDAQ - STEL) today announced that it has engaged Jesup & Lamont Capital Markets ......
In a society that grows more complex every day, consumers are presented with the constant pressures of family, career, and community responsibilities and personal enrichment....
Syosset-based Sagemark Consulting, a division of Lincoln Financial Advisors Corp., hired Attah-jundwe Obiajula as a financial advisor. He had been a financial advisor at UBS ......
NEW YORK -- The Steering Committee of the Global Committee of Argentina Bondholders (GCAB) announced today that it has retained Bear, Stearns & Co. Inc....
In a society that grows more complex every day, consumers are presented with the constant pressures of family, career, and community responsibilities and personal enrichment....
CHICAGO -- Competition for affluent clients continues to heat up among financial advisors, yet many financial advisory firms still rely primarily on referrals for ......
Business Editors DALLAS--(BUSINESS WIRE)--May 25, 2000 1st Global, Inc. has given the company's 1,300 affiliated Financial Advisors a significant operating and competitive advantage with the ......
Business Editors SAN FRANCISCO--(BUSINESS WIRE)--May 29, 2002 Morningstar Investment Services, Inc., a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., has introduced a ......
Business Editors BOSTON--(BUSINESS WIRE)--June 27, 2000 Since investing in today's market is becoming increasingly complex, many investors find the tasks of researching and selecting investments ......
Business Editors & High-Tech Writers AUSTIN, Texas--(BUSINESS WIRE)--May 21, 2001 Vignette's Newest Packaged Application Enables Rich, Personalized Interaction Between Financial Services Firms and Their Clients ......
Print
Email
Digg It
del.icio.usRelated Resources
Premium Content
Business Resources
Sponsored Links
Site Map | Contact Us | FAQs | About Us | RSS Directory | Sign Up for Free Newsletters | Disclosure Policy
Media Kit
Copyright © 1999 - 2009 AllBusiness.com, Inc. All rights reserved.
No part of this content or the data or information included therein may be reproduced,
republished or redistributed without the prior written consent of AllBusiness.com.
Use of this site is governed by our Copyright and Intellectual Property Policy, Terms of Use Agreement and Privacy Policy.
Get In-Depth Company Information from Hoover's | Buy a D&B Credit Report | What is in Your Company's D&B Credit Report?
Online Business Database | Online Business Information | Sales and Marketing Solutions | Business Mailing Lists | Company Profiles
Online Business Database | Online Business Information | Sales and Marketing Solutions | Business Mailing Lists | Company Profiles
Information and opinions on AllBusiness.com solely represent the thoughts and opinions of the authors and are not endorsed by, or reflect the beliefs of,
AllBusiness.com, its parent company D&B, and its affiliates.
AllBusiness.com, its parent company D&B, and its affiliates.
