August 14, 2017 by Snupit
Seeking professional financial consulting can be the key to securing your future and even planning for retirement. The permutations and combinations of modern finance make it difficult for the average person to make the right decisions. You won’t know the best assets to invest in, and might choose the wrong loan option. Regardless of your requirements, seeing professional financial consultants can make life a whole lot easier. However, there is no dearth of options when you start your search. It can be quite confusing to select the best one.
Luckily for you, you can select the best financial consultant by following these 4 simple steps:
1. Select the Type of Consultant You Need
There are three different categories of financial consultants, distinguished by the way they charge you:
• Commission-Based: Generally, financial consultants that work on commission will offer financial products that you can buy. These include insurance and mutual funds among others. There is some level of conflict of interest at play here.
• Fee-Based: In simple words, feed-based consultants charge a fee to help you plan your finances. In most cases, these consultants also sell products for a commission.
• Fee-Only: By far your best option when it comes to financial consultants is to hire one who works on a fee-only basis. They might charge you an hourly rate, a flat fee, or a percentage of the value of your assets that they will manage for you. They are the most likely to offer impartial advice and guidance.
2. Determine Your Purpose
Your financial planning needs will determine the amount of time you need to spend with a professional financial consultant. Hence, it is important that you assess your needs. Once you do this, you can opt for:
• Hourly Consultation: This is the ideal option if you only need help with specific financial issues, for instance selling your business
• Comprehensive Planning: In this situation, the consultant will assess your financial goals and help you plan out your future. You might have to pay an hourly rate or a flat fee.
• Asset Management: The consultant will manage your assets for you, including making investments on your behalf. They may charge a percentage of the value of the assets they are managing.
3. Look for Specific Qualities
When you have zeroed in on the type of financial consultant you need, you can pick the best one based on these qualities:
• Credentials: The consultant should have valid licenses and certifications to work as a financial consultant
• Ethics: Review the past performance of the consultant to see if there are any red flags
• Experience: The best financial consultants are usually the ones who have been working the longest
4. Discuss Your Needs
Once you have shortlisted potential candidates, discuss your needs with them. They will present a solution based on what you are looking for. You can opt for the consultant whose ideas are in line with your needs.
Following these 4 steps will definitely help you pick the best financial consultant.