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Both finance and health have a couple of things in common. We entrust our money and our health in the hands of specialists, a doctor in the case of health and a financial advisor in the case of our finances. However we tend to think that no one understands our finances better than us and this is because we are talking about hard earned money. Here are some common mistakes people tend to make when they hire a financial planner. Confusing Financial Planners with Brokers Brokers will handle a certain segment of your financial life like your investments, but they are not responsible for the care and nourishment of your entire financial life. Exceptions are in the case of you having a high net worth in the range of 5 to 10 million dollars. An expert financial planner on the other hand will take your whole financial picture into consideration; insurances, tax planning, estate planning and the management of investments. Not doing a background check You are putting a lot at stake when entrusting a financial planner to handle your finances. The least you could do is to ensure that you have done a thorough background check before hiring one. Being confused with their mode of remuneration A financial plan is like a piece of property. You will spend more for a prime one that will rake in revenue over the years and less on ones that are short term. A lot of financial planners will tend to draw up free/ low cost plans which have certain templates. These are made to reel in their subsequent clients who will purchase investment products they really do not need. Be very specific in how financial planners are paid for their time. Ignoring the Fiduciary Clause If your financial advisor is a fiduciary, he/she will have standards of service that will require the client’s interest to take precedence over their own. A financial broker is not considered a fiduciary and is not held to that clause. If you inspect the agreement with your financial advisor carefully, you will find that the Fee-only financial planner has the highest standards of service and the least degree of interest conflict with your objectives. Financial advisors are skilled people and they cost money to retain. However, they more than make up for it with their skill set which is geared towards providing you with elite advice regarding your finances. To hire one, look for Miami Financial Advisor Recruiting, Miami Financial Advisor Recruiter, Washington D.C. Financial Advisor Recruiter, or Financial Advisor Recruiter in Washington D.C..
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