There seems to be a lot of confusion regarding financial/wealth management advisors. A lot of people mistake stock brokers to be financial advisors whereas others think accountants of financial firms are the ones who can guide them. In reality, financial advisors are people who can assess your income, economic standing, and expenditure, and suggest you ways to improve your financial condition by investing money at places that will yield beneficial results. Wealth advisors are specifically qualified for this very purpose and the genuine ones are those who are known as certified financial planners.
Choosing financial advisors can be a bit confusing since there are genuine advisors as well as fraudulent people in the market. Even among the genuine wealth management consultants, you are bound to find people who will match your investment sensibilities as well as those who will be in a totally different tangent. Thats why it is important to ask a lot of questions before opting for any kind of wealth management solutions.
Is the advisor certified? A CFP has to take special exams before being certified by the government as a financial planner. The best part about certified financial planners is that they are chosen on merit and are unlike other financial planners who are just graduates with degrees in accounts and finance. A CFP can change the way your portfolio looks by giving sound advice.
What kind of investments does the wealth advisor deal with? You cannot find a wealth advisor who specializes in all kinds of investments. There will be some focusing on insurance policies, others on stocks, and yet others who are experts in doling out retirement advice. There are comprehensive financial planners in the market as well, but it is not certain as to how effective they are. You should choose a financial planner who has the experience of dealing with the kind of investments you want to make.
Do they work for a specific organization? Wealth advisors should ideally be independent. Those who work for specific financial investment firms are most likely to sell their companys schemes to you instead of trying to diversify your investment. On the other hand, an independent wealth advisor will give you an overview of the most suitable plans of every possible company thats beneficial.
The experience: Experience can be a major deciding criterion when you are confused between a few wealth advisors. An experienced advisor wouldve handled accounts ranging from small to big, and would have seen the market at its best as well as at its worst. Therefore he will be in a position to know when to best invest the money and where to best invest it. They are very instinctive too.