If you’re looking for a financial advisor in Honolulu, the chances are high that you’re in the market for the best. Nobody wants to sleep with an eye open, knowing their advisors can turn their empire into ashes. If you must work with a financial advisor, you deserve a good one. But how do you identify a good financial advisor? In this article, we dive into some of the important things to watch out for when selecting one.
Good Financial Advisors are Open About Risks
Risk is one of the biggest reasons why you need a financial advisor. You want to make financial decisions that favor you and help you maintain, if not grow, your wealth. As a key part of your relationship, you’d agree that it’s a bad omen for your financial advisor to shy away from the topic.
A good financial advisor wants to know you, your finances, and your risk appetite. They want to know what you’d be comfortable putting your money into and what isn’t allowed. They also want to know whether you’re looking for high-risk, high return potential or you’re happy to grow your financial portfolio slow and steady.
Whatever your risk appetite is, they will advise you on how best to spread your risks to avoid totally losing your wealth. They may also warn you of some unstable financial options that could easily wipe out your financial portfolio.
When selecting, look for a financial advisor who isn’t shy to discuss risks and their implications for your finances. You can at least be sure that they’d offer candid professional advice now and in the future.
Fees and/or Commissions are Clearly Stated
Nobody likes to be blindsided by fees or costs. In fact, it does feel like a robbery when someone misinterprets or misrepresents their fees and later charges you heavily. A good financial advisor wants to help you manage your money, not sink your finances. They should offer upfront discussion about their fees, commissions, or both.
Being clear about the fees charged can help you make a better decision as to whether you’d retain their services or not. A clearly stated fee also helps you to gauge the value they offer in return for the amount paid for their services.
Always lookout for a clear and transparent fee structure.
Client Education is Included
As a client, you aren’t just paying to be directed on where to put your money and what to avoid. You’re paying to be educated along the line. Your financial advisor should be confident in their expertise and offer education to you as to why certain decisions are being made.
Client education is a big part of financial planning. Your financial planner should know why they are making certain financial decisions and should be able to break complex jargon to you in simple terms. By understanding the why behind their actions, you’re more likely to trust their financial directives and decisions.
A financial advisor that doesn’t offer any bit of information and education to you isn’t delivering totally on their services. You deserve a professional that carries you along and offers education plus recommendations where necessary.
Regular Meeting and Communication
Financial goals, preferences, family situations, and economic tides can cause you to change your decisions. Your financial advisor must understand the importance of regularly meeting with you or communicating to stay on top of those changes. Your advisor should also communicate reports on your financial portfolio and what your financial health looks like periodically.
A report on how your finances have grown or how they have remained stable despite economic downturns may be all that is needed to instill confidence in their expertise.
Remembers Your Goals and Works Towards Them
Good financial advisors are interested not only in knowing your financial goals but also in remembering them. A constant reminder of your financial goals will guide them and their actions. However, you’d agree that it says less of a financial advisor if they cannot remember their client’s financial goals or risk appetite.
You must be able to confirm that your financial advisor has your best interest at heart and remembers every piece of financial information that has been discussed. This can help them to make present and future financial decisions that can harm or boost your portfolio.
The above is by no means an exhaustive list of the qualities to look out for in a good financial planner, however, it can guide you towards selecting the right professional for the job.
