How To Choose A Financial Advisor

choosing a financial advisor

Due to the abundance of financial advisors that are available, you’ll never have a problem when it comes to finding a financial advisor. However, the same thing can’t be told about the process that’s associated with locating competent advisors that are ideal for your particular circumstance. If you want to establish a solid working relationship that benefits you when it comes to making wise financial decisions as well as an abundance of money, you’ll need to equate several different factors before you choose to work with any financial advisor. Here are some tips to consider when it comes to choosing a competent financial advisor in Las Vegas.

1) Determine Which Type Of Advisor Would Be Ideal For Your Particular Circumstance

The first thing you’ll need to understand is that the term financial advisor is a broad term that covers multiple different types of advisors such as insurance agents, attorneys, and financial planners. However, if you’re new to this field, it’s highly recommended that you utilize the services of a financial planner.

suitability vs fiduciary

2) Suitability Vs Fiduciary

The finance sector has two types of compliance that all advisors have to adhere. They get the option of following the fiduciary standard or the Suitability standard. Advisors who follow the fiduciary standard are legally bound to provide you with the best investment options as well as the advice that suits your needs. On the other hand, advisors who follow the suitable standard are only legally required to ensure that your investments are appropriate. However, unlike the fiduciary standard, where advisors are legally bound to ensure that they provide you with the best options, advisors who follow the suitability standard do not have to provide you with the best option, as long as it’s suitable. What this all means is that you stand to gain an added layer of protection if you work with an advisor who follows the fiduciary standard. However, in the same breath, you will be able to gain access to a wider range of investments if you work with an advisor who follows the Suitability standard.

3) Check Their Credentials

When it comes to checking the credentials of each prospective advisor, simply Google them. A competent advisor will undoubtedly have a website and/or online profiles that list their credentials on websites that verify their credentials. Add-on ally, if they have a career profile on a particular site, contact the administration of said profile and verify that their credentials are valid.

4) Get To Know Your Potential Advisor

While it may be true that credentials go a long way as far as credibility goes, education will never trump experience. Therefore, you’ll need to get to know your prospective certified financial advisor Las Vegas as far as their experience goes. Here are some tips to consider when it comes to equalizing a potential advisor:

  • Try to get a detailed understanding of their investment style. For example, do they tend to buy and hold or are they highly aggressive?
  • Ask them about their knowledge I’m regards to several different assets, such as bonds, commodities, real estate, and equities for example.
  • Ensure that they have a solid understanding of tax, estate and retirement planning.