You're Doing It Wrong: How to Choose the Right Financial Advisor

You're Doing It Wrong: How to Choose the Right Financial Advisor

⚒️Resources⚒️

Free Masterclass On How to Increase Income In Retirement By Up To 30%: https://app.thepeakfp.com/free-training

If you prefer to read the full blog post you can find it here: https://www.thepeakfp.com/blog/choose-right-financial-advisor

Consider this example: A recent Vanguard study found that, on average, a hypothetical $500K investment would grow to over $3.4 million under the care of an advisor over 25 years, whereas the expected value from self-management would be $1.69 million, or 50% less. In other words, an advisor-managed portfolio would average 8% annualized growth over a 25-year period, compared to 5% from a self-managed portfolio.

And yet, even knowing these numbers, while 71% of Americans say they could use more help with their household financial plan, only 29% of Americans work with a Financial Advisor.

So the question is, why is this the case?

One of the major reasons why more Americans are not using a financial advisor is the difficulty in understanding how to actually find the right financial advisor for your specific situation

Your needs will be unique, and independent.

Today I’ll be answering the question of “how do you find the right financial advisor for YOU.”

To begin, I recommend breaking the project of finding the right financial advisor down into 7 steps.

Decide what areas of your financial life you need help with

Understand how Financial Advisors are compensated

Understand the difference between small and large financial advisor firms

Understand the different qualifications and designations that financial advisors can obtain

Understand the different areas of focus that a financial advisor might specialize in

Research advisors or ask for referrals from friends/family

Interview several advisors

00:00 Introduction

01:23 7 Steps to choose the right financial advisor for you

02:12 Decide which areas of your financial life you will need help with

03:14 Understand how financial advisors are compensated

05:21 Understand the differences between large + small financial advisor firms

07:24 Understand financial advisors qualifications and designations

09:03 Understand financial advisor areas of focus and specialization

10:28 Research financial advisors or ask for referrals

11:37 Interview questions you can use when meeting financial advisors