Without the right financial knowledge, it can be difficult to know what your best options are for managing your retirement portfolio. The economy, stock market and interest rates are hard to predict. Luckily, quality financial advisors can offer their advice to comfort those concerns. We’ve provided an overview on what a financial advisor is, signs you’re working with someone who is a good fit for you and when to seek their assistance.
What is a financial advisor?
A financial advisor is a person that provides guidance on how to manage your retirement funds and meet your retirement income needs. Be sure to seek an experienced financial advisor you trust with your finances.
A quality advisor will start by analyzing your complete financial situation and income needs. An advisor evaluates economic conditions, inflation and the interest rate environment before making recommendations. Your advisor will then present their recommendations for your portfolio to you in detail.
When working with a financial advisor, you should expect consistent communication about your portfolio. If an adjustment to your portfolio is needed, your advisor should be able to clearly articiulate how the market conditions and your individual needs warrant such changes.
It is recommended that you work with an advisor that operates on a fee-based or fiduciary basis. Fiduciaries are required to put your interest first and are paid an advisory fee, which is typically 1% of the portfolio. If your portfolio performs well, then so will your advisor. This model also offers transparency when it comes to fees, so you know exactly what you’re paying for.
When should you work with a financial advisor?
A financial advisor can be beneficial at any point in your adult life, but it becomes especially important when you are within 10 years of retiring or are currently retired. If you choose to hire an advisor to manage your retirement portfolio, it is important to hire one you can trust.
How can you ensure you’re working with a good financial advisor?
Here are a few questions to ask yourself:
- When it comes to expenses, is your advisor up front and transparent about fees?
- Does the advisor sell you products because they believe it’s the best solution for you?
- Does your advisor consider working with you to be a privilege? Do they want to help achieve your goals?
- Do they always act in your best interest?
- Are you happy with your advisor’s communication style?
If you answered yes to these questions, your financial advisor is likely a great fit. If you answered no, you might want to consider switching advisors. Remember, you can check the legitimacy of your advisor at brokercheck.finra.org*. You can view potential disciplinary history, exams the advisor has passed and more.
Making decisions about your finances doesn’t have to be difficult. Financial advisors can provide the insight needed to set you up for future financial success.
*Please Note: There are external links included in this article that will take you to a website Bankers Trust does not control. Bankers Trust has provided these links for your convenience but does not endorse and is not responsible for the content, links, privacy policy, or security policy of external websites.
Jason Egge is a Financial Advisor with Osaic Wealth, Inc. Securities and investment advisory services offered through Osaic Wealth, Inc., member FINRA/SIPC. Osaic Wealth is separately owned and other entitites and/or marketing names, products or services referenced here are independent of Osaic Wealth. Check the background of this investment professional on FINRA’s BrokerCheck. Not FDIC Insured. No Bank Guarantees. May Lose Value. Not a Deposit and Not Insured by any Government Agency.
