Independant financial advice is the way to go if you want to make sure your advisor is truly on your side. The fee-only advisor, who gets hourly pay for consulting you, needs to also have integrity and only have your best interest in mind when working for you.
Independant financial advice can provide you with specialized advice, such as financial advice for women or Christians. It allows you to focus on your Roth IRA, buying a home, 401k, college education for the kids, impending costs of parenthood and even retirement planning. Imagine paying someone to help you navigate your personal situation to help you reach your goals, no matter your income level. This is made possible by a certified professional who is knowledgeable and paid for their time only, not a commissioned salesperson.
The most important factors to look for are someone who is going to offer comprehensive planning, fee-only service, for their time spent advising you. A good place to start is with a National Association of Personal Financial Advisors to find a credentialed, vetted individual who will help you meet your goals. This ensures that you are given the best information for your situation.
They maintain fairly strict guidelines that your advisor first must have passed their Series 65 or Series 66 exams, which allows them to give advice. In addition, it is important to understand that to be a NAPFA certified advisor, they must have integrity, and work only in your best interest. This is an answer to the commissioned salespeople who work under the guise of a planner, but can undermine our trust when their income comes from selling the same clients they are advising, monetary products.
The Financial Industry Regulatory Authority (FINRA) administers exams to certify industry professionals, including stock brokers and commodities brokers. The Series 66 exam is covers both the Series 63 and Series 65 exams. Passing Series 66 and Series 7 qualifies an individual to be a securities agent and investing advisor. You do need to know this so that you understand the motives and the background of the professional you hire.
That is important to know because you want to find the individual who is most closely qualified to meet your needs. It is also important to understand their motivation, including if they are offering independant financial advice as a NAPFA certified advisor, thus an investment advisor, and also a securities dealer. This could potentially affect their ability to work with you as an unbiased, independant advisor.
In addition, if you are getting close to 59, have an ex-husband paying alimony, have wealthy and elderly parents who will be leaving a hefty sum to you, and have asthma, for instance, your health insurance may be astronomical. You may not quite be able to get Medicare, cannot access your financial accounts, other than savings, and have just received a renewal for health insurance at $700 per month.
Before signing up for that again, it might be a good time to hire a fee-only advisor who can offer independant financial advice. They may have a special background working in the health care insurance field, and also be NAPFA certified and deal with estate planning, as either a CPA or attorney. They might be able to find out ways to start lowering your financial burden by moving assets around accordingly, whether to your children, etc.
Independant advice is also not necessarily a tool only for the wealthy. They may have been lucky, worked hard, or invested wisely over the years. Though, an independant financial advisor can give independant advice to those who are of more modest means. There are people who make a lot of money who are always in debt, and those who make what seems like peanuts in comparison, who finish richer than the high income individual. How do they do that? Good planning, usually following a professional's advice. And, it might even be that there was independant financial advice from a qualified advisor, quietly in their corner.
Solid independant financial advice may save the more modest income individual from having to eat green beans out of a can at every meal. Instead they can live a more normal existence, thanks to professional advice. And, they will still be saving for the house of their dreams, or just helping them save money for a rainy day.
Independant financial advice is worth the cost, and is only charged for consulting time. Independant financial advice is the best deal for handling everything from planning for your future, to helping new parents navigate the financials of parenting, to saving for a house, to more complicated problems that arise in life. Make the most of your money and time and look for a qualified, experienced, trustworthy professional to help you navigate the waters of your monetary life.
Our specialists will conduct a custom search to find local planners and advisors who meet your specific requirements.
"I wanted to be sure I met with an advisor who wouldn't just throw all sorts of financial jargon at me without explanation, and this site helped me find an advisor who was great at explaining things simply. Thanks!"
Sharon D, Tempe AZ