Hiring a good Financial Advisor is the same as hiring a chief financial officer for you and your family. A professional financial officer can help you manage your money and hit your financial goals correctly. From money management and budgeting guidance to investment management – professional financial advisors can provide a wide range of financial planning and money management Galway services.
Remember, financial advice is not only for the wealthy. In fact, the right guidance early in your financial life can have a significant impact on your long-term success.
However, you want to use a disciplined process to find someone with whom you can work for years to come. Certainly, finding the right wealth management services may take some time – but it’s definitely worth the investment in terms of your peace of mind.
Here, we have highlighted 7 steps that can help you find the financial advisor and professional money management Galway services. Additionally, we also have the top 6 mistakes that people make while looking for financial advisors in Galway.
Step 1: Identify What Parts Of Your Financial Life You Need An Advisor For
Before you speak to any financial advisor, your first step is to decide which aspects of your financial life you need help with. Anytime you sit down with a financial advisor, you need to explain your particular money management needs.
If you think financial advisors are only hired to provide financial advice, you are wrong. Expert financial advisors like Money Management Advisors can aid you in charting a course for your complete financial needs. From money management Galway and wealth management services to investment strategies Galway and salary protection insurance – their advice and suggestions can protect you, your
family and estate planning.
Remember, not all financial advisors offer the same menu services. So first decide on the services you need and then let this guide your search.
Step 2: Understanding The Types Of Financial Advisors
Some financial advisors may offer financial planning services but not investment management services. Others may manage investment but provide little financial planning. Some may have expertise in retirement planning, while others may focus on money management Galway services.
In fact, they go by different names: investment advisors, brokers, certified financial planners, financial coaches, and portfolio managers. There are even financial therapists. Moreover, there is no federal law that regulates who can call themselves a financial advisor or provide financial advice. Therefore, it is essential to carefully evaluate potential advisors and make sure they are good for you and your money.
Here is a summary of the main three types of service offerings:
- Financial planning focuses on all aspects of your financial life, like how much you need to save, the type of insurance you will need and more.
- Investment advisory services are mainly focused on investment strategies Galway and decisions as to what investment to own in which accounts.
- Retirement income planning focuses on how to coordinate all the pieces together, such as Social Security, taxes, investments, pensions, retirement date, and more, so they all align toward the aim of delivering a retirement paycheck for life.
Step 3: Decide How Much You Can Pay To The Financial Advisor
There are numerous ways financial advisors can charge for their services, but the most objective and unbiased financial advisors are fee-only.
People often dismiss the idea of having a financial advisor, thinking that they are pricey, but there is an option for every budget.
Regardless of the type of advisor you choose, you should make sure you know how they earn money. This will help you determine whether their suggestions and recommendations are better for you – or their wallet.
Generally, there are four cost levels that you’re likely to encounter:
- Robo advisors are low-cost automated online platforms. They charge an annual fee that is a percentage of your account balance with the service.
- Fee-only financial advisors are paid based on a percentage of your invested assets, a flat annual fee or an hourly rate basis.
- Commission-based financial advisors usually advertise their services for free but are paid a commission based on the products they sell you, including investments and insurance policies.
- Registered investment advisors are large firms that are typically paid through an annual account fee or a percentage of your invested assets.
Step 4: Seek Financial Advisors With Reputable Credentials
All credentials are not the same. Some organizations offer easy-to-obtain credentials for a fee so that salespeople can acquire a credential and appear to be an expert.
When searching for advisors for Money Management Galway and financial planning, always look for someone who has their CFP (Certified Financial Planner) or PFS (Personal Financial Specialist) designation or an advisor who has their CFA (Chartered Financial Analyst) certificate. Especially CFP professionals are bound by the fiduciary standard of care – meaning they are always required to place their clients’ interests above their own.
Credentials are only obtained by passing an examination which seals the fact that the advisor must adhere to an ethics policy and meet continuing education requirements.
Step 5: Use Search Engines To Search For Criteria
Online searches are an amazing way to narrow down the financial advisors in your zip code who possess the right education, credentials, and appropriate billing structure to meet your needs. All you need to do is search for “Money Management Galway” and input the specific type of advisor you are looking for.
Many firms work with clients remotely – which means you pick advisors based on expertise rather than location in case you are not comfortable meeting face-to-face.
Step 6: Verify Credentials And Check For Complaints
Before you zero down your options to one financial advisor, you need to make sure that they are legitimate and have a good service record. You can easily do this by checking their records with the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), the CFP Board, or other membership organizations with which the advisor is associated.
Remember, just because an advisor has a complaint against them, you shouldn’t rule them out immediately. Usually, formal customer complaints stay on a financial advisor’s record for a long time. However, if someone has multiple complaints, consider looking for another advisor.
Step 7: Learn How To Spot The Fraud
Fraud is more easily perpetuated when someone has custody of your assets. Reputable financial firms will use what is called a “third-party custodian” to hold your assets. This means that their advisors will be able to place trades and offer services on the account, but it is the custodian that reports transactions to you, verifies the signature and does much more.
So be cautious of advisors or firms who have custody of your money or own other related firms that serve as a custodian. Be extra cautious while discussing with advisors or firms that co-own other investments or other firms that they are suggesting to you.
6 Mistakes To Avoid When Choosing A Financial Advisor
Choosing a financial advisor is a significant life decision. They will determine your financial trajectory for years to come. Therefore, you need to find a financial advisor who serves your area and is legally bound to work in your best interest. Also hiring a good advisor can give you a great piece of mind.
Here are 7 blunders that you must avoid while looking for a financial advisor:
Hiring An Advisor Who Is Not A Fiduciary
A fiduciary is defined as a person who is bound to act in another person’s best interest. If an advisor is not fiduciary and constantly pushes investment products on you, chances are that they are only there to serve their money interest.
Hiring The First Advisor You Meet
It may be tempting to hire an advisor who is the closest to your home or the first advisor you found in the Yellow Pages – but this decision demands time. Take your time to interview at least 4 to 5 investors before you pick the right one for your needs.
Choosing An Advisor With The Wrong Expertise
As you already know, there are different types of financial advisors – but you need to pick the one that understands your needs and is an expert in your required domain.
Picking An Advisor With An Incompatible Strategy
Every advisor has their own strategy in place. Some may advise on aggressive investment while others may see more conservative. So you need to pick an advisor whose investment strategies Galway, and financial planning align with your future vision and needs.
Not Asking About Their Credentials
To be eligible to impart financial advice, financial advisors are required to pass certain tests, and some even become Certified Financial Planner (CFP). You should always ask the advisor about their licenses, tests, and credentials.
Not Understanding How They Are Paid
Different advisors charge differently. Some advisors are “fee-only,” some commission-based, while others also charge a percentage of your assets under management. You should know the mode of compensation of the advisor; otherwise, you may face a serious conflict of interest in the future.
Bottom Line
Because of the ambiguity of the industry, you need to make sure that you get the right financial advisor and money management Galway professional who meets your fiduciary and financial needs. With that said, you can seek advice from expert financial advisors at Money Maximising Advisors Limited. With an experience of a decade in the industry, our team has helped thousands of professionals and retirees plan their financial footpaths to a stress-free financial future.
Talk to us at +353 91 393 125
Mail us at office@mmadvisors.ie
Or visit our office at Unit 3, Office 6, Liosban Business Park, Tuam Rd, Galway, Ireland
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