Why Should I Hire A Financial Advisor?
A financial advisor is a professional who helps individuals and organizations manage their financial affairs and make informed financial decisions. Financial advisors may work with many clients, including individuals, families, and small businesses.
The specific role of a financial advisor can vary depending on the needs and goals of their clients. In general, financial advisors are responsible for the following:
- Assessing their clients’ financial situation, including their income, assets, debts, and long-term financial goals
- Developing a financial plan or strategy to help their clients achieve their financial goals
- Recommending financial products or services, such as investments, insurance, or retirement plans, that are appropriate for their clients’ needs and goals
- Managing their clients’ financial assets and portfolios, including selecting investments and monitoring their performance
- Providing ongoing financial advice and guidance to help their clients stay on track and make informed financial decisions
Financial advisors may specialize in a particular area of finance, such as retirement planning, estate planning, or investment management. They may also have specific expertise in working with certain types of clients, such as small business owners or high-net-worth individuals.
If your looking to hire a financial advisor, consider working with Christopher J. Dixon, RFC. Chris is a qualified and experienced financial advisor who has worked with dozens of clients, helping them achieve their financial goals while also maximizing their assets to get the most out of their investment journeys.
What’s The Difference Between A Fiduciary Financial Advisor And A Regular Financial Advisor?
A non-fiduciary financial advisor is a professional who is not required to act in the best interests of their clients. These advisors may have conflicts of interest, such as earning higher commissions or fees for recommending certain financial products or services.
In contrast, a fiduciary financial advisor is a professional who is legally and ethically required to act in the best interests of their clients. Fiduciary financial advisors must put their client’s interests first and act in good faith, honesty, and loyalty in their dealings with them.
8 Reasons To Hire A Fiduciary Financial Advisor
If you are considering hiring a financial advisor, it is important to choose one who is a fiduciary. Here are five reasons why you should trust a fiduciary financial advisor:
- Minimal conflicts of interest. Fiduciary financial advisors must disclose any conflicts of interest that may arise in their dealings with clients. This means they must disclose any financial incentives or relationships that may affect their recommendations. This helps to ensure that the advice they give is unbiased and in the best interests of their clients.
- Objective advice. Fiduciary financial advisors must provide objective advice tailored to their clients’ individual needs and financial goals, meaning they cannot recommend products or strategies that are not in their clients’ best interests simply because they will earn a higher commission or fee.
- Asset protection. Fiduciary financial advisors are required to follow strict rules and procedures when it comes to managing and safeguarding their clients’ assets. Maintaining accurate and complete records, using due diligence when selecting investments, and ensuring that client assets are held in a properly registered and insured account are just a few ways advisors can protect your assets.
- Legal recourse. If a fiduciary financial advisor breaches their fiduciary duty to their clients, those clients may have legal recourse. Suppose an advisor fails to act in their clients’ best interests or violates their fiduciary responsibilities. In that case, their clients may be able to take legal action to recover any losses or damages.
- Peace of mind. Working with a fiduciary financial advisor can provide peace of mind knowing that your financial affairs are being managed by a professional who is held to the highest legal and ethical standards. You can trust that your advisor is acting in your best interests and is committed to helping you achieve your financial goals.
- Customized financial planning: A fiduciary financial advisor will take the time to understand your unique financial situation, goals, and risk tolerance and will develop a customized financial plan that is tailored to your needs. They’ll include recommendations for investments, insurance, retirement planning, tax strategies, and other financial products or services.
- Expertise and experience: Fiduciary financial advisors are typically highly trained and experienced professionals who deeply understand the financial industry and a wide range of financial products and services. They can provide valuable insights and recommendations to help you make informed financial decisions.
- Ongoing support and guidance: A fiduciary financial advisor will provide ongoing support and guidance to help you stay on track and achieve your financial goals. They’ll do this by setting regular meetings or check-ins to review your financial plan and make any necessary adjustments, as well as answer any questions or concerns you may have.
In summary, hiring a fiduciary financial advisor can provide many benefits, including minimized conflicts of interest, objective advice, protection of assets, legal recourse, and peace of mind. When it comes to managing your financial affairs, it is important to choose a professional committed to acting in your best interests and held to the highest legal and ethical standards to ensure you get the best advice as you begin planning your investment journey.
FAQ’s
How do I know if my financial advisor is a fiduciary?
You can ask your financial advisor directly if they are a fiduciary. In addition, you can check to see if they are registered with the Securities and Exchange Commission (SEC) or other regulatory bodies. Advisors who are registered with the SEC are required to follow fiduciary standards when providing investment advice.
What should I expect from a fiduciary financial advisor?
A fiduciary financial advisor should provide unbiased and objective advice that is tailored to your individual needs and financial goals. They should also disclose any conflicts of interest and follow strict rules and procedures for managing and safeguarding your assets.
What assets would a financial advisor suggest I invest in?
A retirement savings account, stocks, and mutual funds are typical assets to invest in to begin your financial investment journey.
