FINANCIAL ADVISOR WORLD
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A Financial Advisor for Wealth Management
Are you interested in contracting a financial advisor for help with your assets and wealth management? Financial advisors can be wonderful assets for planning retirement funds and the investing of your monies. Financial advisors receive payments in one of two ways and you must consider the negatives and positives of each. If you choose a fee-based advisor they will receive commissions as well as the regular fees associated with planning.
They may receive benefits such as finder’s fees, bonuses, rebates, and awards. Typically their fees will be less than that of a fee-only advisor but the commissions may add up to more in the long run. A fee-only planner is less likely to perform risky maneuvers for personal gain with your money such as encouraging you to trade when it might not be beneficial for you. Sometimes fee-based financial planners will churn your assets, a process by which they buy and sell securities more rapidly than needed to generate commissions. Alternatively, a fee-based commission may well be worth his commissions if he or she is expert and isn’t out purely for their own self. A fee-only financial planner typically charges their clients between 1% and 1.5% of their assets given to the advisor each year. This is a relatively small charge but may add up depending on how many assets you have.
Frequently your best bet for finding the best financial advisor available to you is to look on the internet for reviews of those local to you. Then you can decide upon the best one or two to visit and finally make a decision as to which planner you’d like to place your assets with. These reviews can be extremely helpful because if you find out a local broker has been accused of churning you’re certainly not going to want to go with him even if he generally produces good portfolios for his clients. Advisors have a variety of options for producing long term gains with client’s assets. Depending upon your risk factor or tolerance for risk that depends upon how much money and assets you have to invest as well as your own personality. If you say that they can risk a little more then they will be more likely to take slightly riskier options that may result in greater gains. Some of the options an advisor may take depending upon your risk factor are CDs, 401(k)s/403(b)s, mutual funds, and stocks. Stocks are probably the most risky while CDs are probably the most secure. With a CD, which is a certificate of deposit, you place your money in a bank for a certain amount of time and as long as you have the money in the CD for that length of time you receive a guaranteed interest rate. Usually the longer the length of the CD term the more interest you receive. Mutual funds are collective funds managed by boards of directors and some are very successful. It may be worth doing a little research today to figure out if financial advisor is right for you.