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Financial management is an important part of living, especially as an adult, because your spending habits and decisions affect your life. Financial professionals help many by educating and advising people on making wise decisions with their money. Unfortunately, some would take advantage of people who need help with financial management by posing as an expert that can guide them for personal gain or others who aren’t competent enough to help with money matters.
When seeking a financial advisor, besides the abundance of choices, trustworthiness is also a major concern to consider. People come to them for advice on spending, saving, and where to invest their money, so it’s only right that they should have what it takes to earn people’s trust. Any individual should be comfortable with a financial advisor.
To raise your comfort level with financial advisors, you have to know if they are legitimate and capable. Here are ways to help you find that out.
Ask them about their core values
A person’s core values also reflect professionalism. Finding out a financial advisor’s core values will help gauge their integrity. Ask those you’re working with to share them with you.
You’ll know that the one you’re working with is trustworthy if their values are aligned with yours. For instance, an advisor who believes in having a long-term relationship with you can be considered trustworthy. One way to know if they’re in it for the long run is when they don’t sell you financial services to generate a commission.
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Understand how they earn compensation
Understanding how your advisor or a financial planning expert is being compensated will help you avoid forfeiting a chunk of your money to someone who doesn’t have your best interests. One of the first things you should know is how much you’re paying for their services. They or their employer should be transparent with their clients on how much they will pay for their services.
You should receive an accounting of how much you paid an advisor for tax purposes. Other things you should inquire regarding payment include an annual fee and the payment method you’ll use to pay an advisor. For example, are you paying a check each time, or will the advisor automatically deduct the fee from your assets?
Ask them about their core values
A person’s core values also reflect professionalism. Finding out a financial advisor’s core values will help gauge their integrity. Ask those you’re working with to share them with you.
You’ll know that the one you’re working with is trustworthy if their values are aligned with yours. For instance, an advisor who believes in having a long-term relationship with you can be considered trustworthy. One way to know if they’re in it for the long run is when they don’t sell you financial services to generate a commission.
See if they are patient
Patience is a quality a financial advisor should have. They are tasked to help people who have less knowledge about financial matters, so they have to take time to discuss and explain things. An advisor who takes their time to ensure that you understand their recommendations is one that you can rely on.
Final words
Your money matters, so make sure that you find a legitimate and competent financial advisor to help you with it. Only work with those that can provide you with the best financial recommendations and people you can learn from.
