When you come across a large sum of money, it is recommended that you seek professional assistance in managing it. Whether it is an inheritance, a big raise, bonus or a buyout, you should consult financial advisors who will be able to give you tips on how to plan for the money and get the most out of it.
When to Hire Financial Advisors
When You get your First Job — Whether you get paid $200,000 or $20,000 a year, you should definitely consider hiring a financial advisor. When you get your first serious job, you’ll need to learn how to begin saving and how you can take advantage of benefit packages from your employers.
When you get Divorced or Married — It is easy to make emotional mistakes when you enter or leave a marriage. Having an unbiased party sharing their opinion can help you learn more about income in marriage and combining assets.
Questions to Ask your Financial Advisor before Hiring them
How do you make Money? — It is important that you understand how your financial advisor will be making money from you. Financial advisors will typically charge 1 to 2% of the total investment amount they are handling for you. If they are not quick to answer how they’ll be charging for their services, then you should consider moving on to another service provider. You might end up paying hidden fees or commissions every time you sell mutual funds or stocks.
Do you Incorporate Technology with your Services? — You might be surprised to find out some financial advisors still use backdated methods to handle your finances. With so many tech-driven tools they can use to manage your entire financial life, some financial advisors still stick to the old methods and are therefore less ineffective.
Will you be helping me with Taxes? — In addition to recommending investments, a good financial advisor should be in a position to handle your taxes. There are many instances where you’d save money by allocating various investments to nontaxable accounts. Your financial advisor should understand all this and help you get the most from your investment.
How to Find Reputed Financial Managers
Finding a reliable financial advisor shouldn’t be that difficult. However, you want to make sure you’ve learnt as much as you can about the service providers before investing in their services. They should be experienced in the industry, keeping up with the latest trends of handling investments. They should also be in a position to help you with 401k plan, managing stock options, planning for your kids college and estate planning among other areas. You can learn more about the services these professionals offer by visiting financial advisor websites.
