It is a plain fact that managing your wealth whether small or big can be a cumbersome task. This is where the financial advisor comes to help you keep and invest your money safely. However, before you start working with one, there are important questions you should ask.
What certifications do you hold?
It is imperative to know certifications and licenses your financial advisor has. The majority of renowned consultants are certified accountants, analysts, or specialists. In fact, some even carry insurance and Juris Doctorate licenses. As much as every professional starts somewhere, it is advisable to hire a reputable firm that has extensive experience and practice in your field of interest.
How will you protect my assets from fraud?
All your assets ought to be protected by a reliable custodian. Thus, whenever you ask for safeguards, you need to inquire about infractions the advisor has received in the past both as an individual or with the firm. Always hire a fiduciary as he or she will offer the best service. Moreover, consultants follow a strict code of ethics and standards that they share with clients. No matter such standards, they need to comply with relevant financial regulations.
How much do you charge?
In this case, your financial advisor needs to be 100% transparent and accountable. There is a need to explain exact fee structures. This will help you know how much you are paying. In fact, some are fee-based. This means that they offer a fixed rate for services provided. Some financial counselors provide commission-based services. This means that they make a certain percentage of every product you buy to help grow your investments. Thus, it is crucial to know what you are being charged. Always avoid an advisor that charges you fixed charge plus commissions.
What access will you have to earning reports?
Financial advisors have direct access to earning reports from top holdings where investments are made. The advisor should tell you immediately your earning reports anytime you want them. Moreover, he or she needs to educate you on your holdings before further investments. In this way, you will understand what your consultant suggests.
How often will we communicate?
Open communication is very important as you will know how your money is performing. Having weekly announcements about your market performance is important. Also, you should get notifications about market trades and get detailed explanations on each buy and sell option. Some firms send out information on a monthly basis.