You may not be aware that some financial planners will charge you on an hourly basis for their advice. Why would you want to engage an advisor on an hourly basis? There are a variety of reasons this may be a good choice for you.
You Don’t Have the Minimum Assets Many Firms Require
A common structure of financial firms is that they will provide advice for you if you invest your money with them. Unfortunately, many firms have account balance minimums of $250,000, $500,000 or even higher. This pushes those investors with smaller asset bases out of the market for advice.
You’d like a second opinion on the work you are doing yourself
Perhaps you really enjoy and are very adept at managing your own investments and financial plan. Consulting with a financial planner who can double-check your assumptions and outcomes can save you from making big mistakes. It is better to find out you need to make a change now when you have a time left to reach your goals, rather than years after it is too late to correct your course of action.
You’d like to ask a professional a few questions specific to your situation
All of the information you are seeking is potentially available for free on the internet. But it could take years to search for the information you are seeking. And even if you find what you are looking for, is it relevant to you? Consulting with a financial planner allows you to ask questions and receive answers specific to your individual situation. Tailor-made advice, just for you.
You’d like to try someone out before committing to a long-term relationship
Choosing a financial planner is a big decision. This is potentially a years-long relationship, and you are trusting this person to help you make some of the most important decisions of your life. Why not test the waters and make sure you like them and the work they do?
Paying for hourly services may be something which you have never considered, but can be an excellent option. A great place to start would be to make some calls and ask some questions!
CLICK HERE for What Questions Should Women Ask When Interviewing a Financial Advisor?
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
I was recently asked to participate in a discussion related to questions women should ask when interviewing a financial advisor. I started to reflect on the women who had interviewed me who clearly wanted to make sure they were properly vetting the person who would handle their life savings, but just weren’t sure what questions to ask.
As part of this discussion, I started to think about some of the best questions I’ve ever been asked by potential clients. I believe people have been trained to ask about investment performance, but that question isn’t really going to help you find the right advisor for you. Of course, you should always ask basic, standard questions like:
But a relationship with a financial advisor can last years, even decades. It can be helpful to go a little deeper to find the right fit. Here are a few great, uncommon questions that an advisor should be able to answer easily.
Success should be more than just how much money was made in a given year. Some years the markets are down and that certainly doesn’t mean that everything was a failure that year. Did you move further toward your goals? Is this important to the advisor?
I have had a few potential clients ask me why my last client left. I appreciate the sentiment, but this feels a bit like the interview question “What is your greatest weakness?” in that you will probably not get a straight, honest answer. But asking an advisor what their clients like about the relationship should give you an honest look at what it would be like to work with her.
There may come a time where you don’t agree with a strategy or suggestion your advisor makes. Like any other relationship, having a way to work out your differences is critical to long-term success. I’ve spoken with too many women who felt bullied by their advisor. Why choose that when you can have a relationship with mutual respect and understanding?
There are no right or wrong questions to ask, and no “stupid” questions. Ask what is on your mind, and whatever will give you the confidence that you have selected an advisor with whom you are comfortable.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
A financial advisor! According to a recent study, 87% of Gen Xers would use a financial advisor if they found the right one.(1) So what’s keeping you from finding the right advisor?
Is it cost? Despite what TV and movies show, financial advice is not just for rich people. There are options for all income and asset levels, and speaking to an advisor can inform on what costs actually are. Further, I think that the people who benefit the most from financial planning are those that don’t have vast riches. Middle-income people often need to make tough choices with their money and guidance can be critical in these decisions. For example, It’s hard to know if you should put money in a retirement account or supplement your child’s college education, and working with a professional can be immeasurably helpful.
Is it embarrassment? Do you feel hopelessly behind in retirement saving, and are embarrassed about this fact? Believe me, we’ve seen worse than you! In fact, over a third of Gen Xers have absolutely nothing saved for retirement. This is what we do, and there is no reason to let your embarrassment keep you from seeking professional assistance. You may be behind, but you still have time to make a major impact on your retirement savings if you get moving now.
Is it fear of the unknown? Are you worried that you won’t understand what a financial planner is saying, or that the meetings will be full of complicated jargon? No planner worth her salt should be speaking over your head. It is part of our job to ascertain your level of knowledge and work from there. Planning the questions to which you want answers ahead of time can help with this nervousness. If you don’t click with the first advisor you meet, find another one. There are plenty of planners who are patient and genuinely want to help you. Trust me, we’re out there! It’s never too late to take planning for your retirement seriously. Don’t let fear or embarrassment keep you as one of the 87% of Gen Xers hoping to find the right advisor!
(1) Financial Advisor Magazine, July 3, 2019
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Remember way back to your first paycheck. The moment you open the envelope anticipating the windfall when all your hard work pays off. Then, like a swift kick to your gut, realty hits. Your takeaway earnings are almost always way lower than what you expected.
Once the shock and horror of taxes goes away, money management comes into play. Most of the time these days, paychecks are spent before the money hits your account. If only at the moment of your first paycheck you had implemented the ‘holy grail’ of personal finance, pay yourself first. According to a recent article from Forbes, “only 23% of Americans have enough emergency savings to cover six months of expenses (the amount many advisers recommend for financial security should something unforeseen happen)—and 26% have no emergency savings at all.1”
Building the habit of paying yourself when you pay your bills could be the difference between uncertainty and financial stability. So what exactly does pay yourself first mean? Investopedia says, “‘Pay yourself first’ is a phrase popular in personal finance and retirement planning literature that means automatically routing your specified savings contribution from each paycheck at the time it is received. Because the savings contributions are automatically routed from each paycheck to your investment account, this process is considered to be paying yourself first; in other words, paying yourself before you begin paying your monthly living expenses and making discretionary purchases.2”
It’s never too late to establish these habits. Use the services available to you from your financial institution instead of waiting for saving to feel like second nature. Consider putting as much as you can on autopilot as you possibly can automate your paycheck to pay yourself first. Forbes suggests, “direct-depositing contributions to a retirement account before that money hits your checking account. And if your employer allows for multiple automated transfers, you can also have a set amount transferred into emergency savings or another account earmarked for a specific savings goal.3”
1. https://www.forbes.com/sites/learnvest/2014/07/24/are-you-paying-yoursel...
2. https://www.investopedia.com/terms/p/payyourselffirst.asp
3. https://www.forbes.com/sites/learnvest/2014/07/24/are-you-paying-yoursel...
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2014-2018 Advisor Websites.
