Managing your investments in order to build wealth is very important for anyone to enjoy financial freedom through wealth building. Various investment choices are available, which makes it so overwhelming for an individual to identify where to invest and what returns to expect. In order to do this process well, it is ideal for tapping into the expertise of an investment advisor who can make wise investments decisions on your behalf.
We may need an expert advisor for managing our finances and identifying the appropriate investment vehicles to choose. In order to do this well, here we will discuss some tips from a financial expert on how to choose the best financial advisor.
Choosing the right financial advisor by Kavan Choksi
1. Checking credentials
Kavan Choksi advises that the first thing you have to check while considering a financial advisor is their qualifications and skills. An ideal financial planner needs to have sufficient knowledge about all available and latest investment avenues. They should also have the financial planning certification from the authorized body in order to give financial guidance to individuals and businesses.
2. Check their consulting fee
There are no clear-cut guidelines as to deciding the fee for financial consulting. Anyways, the best financial advice never comes for free. The advisors may give an initial consultation for free to their potential clients. If there is a scope of getting a free consultation, you may make use of it to explore different financial advisors and identify their expertise. Some financial planners may charge a flat fee, whereas some others may charge based on the percentage of assets they manage on your behalf.
3. Check for their experience
You may also check whether the financial planner has considerable experience in the local financial market and has seen different market cycles over a longer period. The person should also have a fair understanding and exposure to handling different financial and investment methodologies. It is also ideal to go for financial advisors who have at least five or more years of experience in advising clients of your nature. The role of a financial advisor is to manage the funds on behalf of their clients and also to assess the risk by understanding the microeconomics aspects. They should pay attention to potential future growth and give a realistic picture to their clients.
4. Do a reference check
Just like you go for a specialist doctor or tax consultant, it is important to crosscheck your financial advisors’ references to identify what their clients say. You may try to understand whether the financial planner is willing and available to communicate with you anytime and can understand the clients’ problems and goals. They should also be available and capable of engaging in meaningful conversations with you. You may also check the public profile of the financial advisors or the company they represent in order to see their ratings and reviews.
Kavan Choksi advises that following these tips to choose the best financial advisors will help you to compare the capabilities, knowledge, and experience of different consultants and choose the best one for you.