The right financial direction can lead you to a lifelong financial success.
When it comes to hiring a financial advisors, it should be as important as
Step #1 Asking Friends and Family for referrals.
Following this first step thoroughly can make a good determination on whether any future investments could prosper in a positive way. When most people want to invest, they are unsure where to start. The best way is to start is asking your friends and family. You would be amazed on who around you is investing. Even further, is questioning what types of investing people are doing. I won’t get into the different types of investing that are available, but what I will say is that there are plenty of types. The reason why you should ask your friends and family is because they will tell you the truth on who is doing a good job. They will also tell you who you should stay away from.
Step #2 Interview Your Potential Financial Advisor
I bet your are thinking to yourself and saying...DUH! Of course! But do you realize how many people forget
Step #3 Check the background of the Financial Advisor
Ok, now you are probably thinking... What? Seriously? Well let me ask you, if this is your business, wouldn't you do a background check and drug test? Well this is probably one of the most important things to do IF NOT THE MOST important.
Money is a very serious factor, so take this whole process seriously. As you conduct your meeting with the advisor, ask some preliminary questions and write them down to cross check the accuracy of the information. The best way for someone to verify the background of a potential financial advisor is to contact some some organizations I will mention.
- NASDR - National Association of Securities Dealers - This is the top resource for finding your financial advisor background. Website: www.nasdr.com
- NASAA - North American Securities Administration Association - This organization is solely in support of helping investing protection. The NASAA helps protect investors from securities fraud. Website: www.nasaa.org
- CFP - Certified Financial Planner Board of Standards - This is the organization that enforces the standards that all financial planners must follow. Website: www.cfp-board.org
As you go through this stage, I believe that you will feel way more comfortable with your potential advisor. This will also give you a leg up on what extent of information you do know so they can't take advantage in the future.
Step #4 Keep in constant contact with your Financial Advisor
Now this is very important to the fact that keeping up to date of the efforts of your financial advisor. Once again, thinking of this as your business (which it basically is), you want to know how efficient your "employee" is doing. Not to belittle your financial advisor, but he/she does works for you!
Step #5 Be in control of Your Money!
If there is anything you walk away from this article is to remember that you are in control of your money. Regardless of how the financial advisor wants to say it, or sell you on an idea; You need to do your due diligence on the decision. Its your money that you are handing over to the financial advisor. Make a plan of what you want, write it down, and give yourself a timeframe. The idea is creating a goal and acting upon it. Regardless of what age you are, you can still have a good financial future if you plan. Talk constantly with your financial advisor, develop a plan, conduct reseach of what plan will give you a potential return on investment (R.O.I.); also understanding the amount of risk you are willing to endure. Remember to have fun, be involved, and the rewards will follow.