Finding the right financial advisor is always a tricky process. You want to find someone you’re comfortable working with and who listens to you and your concerns about your investments. Your financial advisor should make their fees clear to you before you agree to let them manage your investments. Your financial advisor should be available to answer your questions and explain their decisions. While our advisors promise to give you personalized attention and individualized investment strategies, not all firms offer the same quality service. When choosing a financial advisor, if you see these red flags, consider working with someone else.
Lack of Experience
All financial advisors must be certified to legally operate in the United States. While most financial advisors will possess a Series 66 and a Series 7 license, you may always ask to see their qualifications and credentials prior to letting them manage your investments. In the financial services industry, experience matters as much as certifications. Choosing an advisor that is new to the industry may not always be in the best interest of your investments. While you may save money on fees, look for an advisor with experience under their belt or a firm with a group of experienced and well-educated advisors on their team.
Outperforming the Market
While investment strategies vary depending on the advisor and the client, beware of an advisor claiming that they consistently outperform the market. Promising higher-than-market returns on investments often means that the advisor takes risks, and risks places your finances in danger of depletion. You are not guaranteed to see a high rate of return and may, in fact, lose money in the process. A quality financial advisor will examine your portfolio and recommend investments based on your age, your goals, and your risk tolerance.
Not Discussing Your Goals
If a financial advisor meets with you and isn’t willing to discuss your financial goals, look elsewhere. Working with a financial advisor requires a degree of teamwork and conversation. If your financial advisor does not understand your goals, they won’t be equipped to make the best decisions for you and your investments. The last thing you want is a financial advisor who puts your money into funds that may not help you reach your investment goals. Look for someone who takes the time to get to know you and will give your finances that extra personal touch, working with you to understand any challenges or changing circumstances that may come up, year to year.
If the financial advisor offers to manage your investments for free, look elsewhere immediately. With the advent of online investments and online financial planning, the opportunity for scams has dramatically increased. Through the anonymity of the internet, many scam artists seek to “manage” your money, often promising unrealistic returns with minimal or no fees. A quality financial advisor will always charge for their services, either in commission or regular fee-based payments. Similarly, work with a financial advisor you can meet with face to face. Remember, financial planning is about establishing a relationship between you and your advisor so that you may better reach your investment goals.
They Make You Uncomfortable
If you feel uncomfortable with the financial advisor, or believe their strategies are not in the best interest of your goals, look for a different financial advisor! You should always work with an advisor that you feel comfortable with because your investments and your goals are ultimately in their hands. They should always listen to your concerns and take steps to address them prior to making any decisions.
Contact Black Harbor Wealth Management today to schedule your complimentary consultation with one of our financial advisors.