How is the Compensation of Financial Advisors?

With regard to compensation, the advisors are classified into four categories:

  • With salary. You pay the company the consultant works for and the company pays the salary to your advisors
  • With fees. You pay a fee according to an hourly rate (for specific advice or financial plan) or according to a percentage of your assets or income
  • With commission. The consultant receives a commission from a third party for the products that you can acquire
  • Commission and fees. The advisor receives both commissions and fees

You will need to decide what type of compensation structure works best for you according to your own personal circumstances.

When is the time to consult a financial advisor?

In many cases, a specific event in life or a perceived need can lead you to seek the guidance of a financial planning professional. These events or needs may include:

  • Marry or divorce
  • Have a baby or adopt a child
  • Pay for your child’s college education
  • Buy or sell a family business
  • Change of work or profession
  • Plan your retirement
  • Develop a plan of goods
  • Facing the death of your spouse
  • Receive a financial fortune or inheritance

In these situations, a financial professional can help you make objective decisions instead of emotional ones.

However, you do not have to wait until something happens to consult a financial advisor. A financial advisor can help you develop a comprehensive strategy to achieve your financial goals that not only anticipate what you will need to achieve, but also be flexible enough to adapt to your ever-changing financial needs.

How to choose a Financial Advisor?

  • The main requirement when choosing a Financial Advisor is honesty; this is evidenced by the verification of their experience, references and studies.
  • In parallel, the confidence generated by the dialogues prior to hiring, for this it is advisable that the client ask many questions to the potential advisor, so you can know and weigh your level of knowledge and experience in the sector.
  • The certifications held by the professional or signature, for example, the CFA (Chartered Financial Analyst), an international certification whose obtaining warrants have years of experience in the market, the approval by the Financial Advisor in a series of tests related to economy , ethics and investments and the subjection of this to the Association’s code of ethics.
  • The technological tools of support that it offers, thanks to the comfort and immediacy that they grant and that guarantee the client the access to their advisors in any moment and time.

An interesting fact when choosing a personal Financial Advisor is to consult him in what he invests his own money. Even though the answer should not be binding to the type of investments that the professional recommends – given that the patrimonial situations are surely different – knowing the congruence between the particular recommendations of the advisor and the destination that this gives to his own money can be a valuable signal. An expert financial adviser like Dwayne Rettinger is a professional who looks for solutions for his clients related to the stock market and the financial products. Dwayne Rettinger Investors Group is a Certified Financial Planner having experience of more than ten years of helping his clients make sound and fair financial decisions.

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