To protect our hard-earned money and save us a lot of worry, many people turn to financial advisors for help managing their assets.
A good financial advisor can save a lot of hair on our head. Be it issues regarding pensions, stocks and shares, insurances, mortgages or retirement plans, financial advisors are always available to come to our aid. But the idea of looking for a perfect advisor whose presence would benefit us can feel like an incredibly cumbersome task.
Finding a financial advisor who is 100 percent genuine is more than a necessity. Thus, we shouldn’t ignore the prominent red flags that are listed below regarding this industry while looking for a suitable financial advisor.
- Weak Listener Equals Weak Advisor
People who talk highly about themselves and make our problems secondary to them are a strict NO in this business. As always, actions do speak louder than words. People investing more time in our problems and issues rather than exaggerating their success in this particular field are the ones we should always pick.
- Confusion regarding their payment cycle
Financial advisors are of two types: Commission based and fee-only based. So, to understand the procedure regarding how you are profiting and how he/she is profiting in the given scenario can be a bit challenging. Thus, it’s always appreciated if we dig dip and ask enough questions to clear our doubts regarding the payment cycle.
- Cost Estimation And Scheduled Meetings
It is always advisable to get the total cost estimate of the respective project beforehand and to make sure that all the initial introductory meetings and the succeeding regular meeting cycles are all included in the brochure. This would prove to be beneficial at the end of the project and would help to track any sort of slack in their previously promised services.
- Communication Gap And Partiality
It is always preferred that our personal financial advisor consults us before making any sort of trade or transaction. Any sort of communication gap between the advisor and his/her client is considered to be highly unethical.
The concept of partiality comes into action if a particular company assigns random junior or trainee advisors to their clients without a thorough study of the client’s issues or demands, which is highly unacceptable because valuing their clients should be their utmost priority.
- Personal Intuition And Lack Of Connection
Lack of instant connection with the advisor and personal dislike is the loudest indication of a red flag while looking for a financial advisor. A relationship between a person and his/her advisor should be loyal and any sort of visible breach is a screeching warning.
Big-shot business families value their financial advisors more than anyone else. Not only them, but regular people seek assistance from these consultants on a daily basis, because all we need at the end of the day is the feeling of security and comfort knowing that our hard-earned money is safe — that’s why we need top notch financial advisors more than anything else!