- Determine the services that you need.
- Understand the different compensation models that financial advisors use.
- Investigate the competencies of your prospective financial advisor.
- Decide how much help you need and want.
- Choose your financial advisor.
Choosing a financial advisor shouldn’t be difficult, but it should be done with great care. While these two things may seem to contradict each other, they don’t. By preparing yourself with the right information, and by an introspective look at your needs, choosing the right advisor is easy.
After considering each step, choosing your advisor will be much easier. Let’s look at these five considerations and how each will lead you to the right choice in financial advisors.
Determine the Financial Services You Need
You know you need a financial advisor, but you may not be sure which specific services you need. If you are nearing retirement age, you may need more help navigating the complexities of social security, Medicare, and planning distributions. On the other hand, if you are early in your career, your focus may be on investment advice and management.
Services offered by financial planning services may include retirement planning, tax planning, debt management, social security analysis and planning, medicare planning, estate planning, investment management, and of course tax preparation.
You may feel that you need assistance in only one area, but the best investment advisory services will be prepared to help you navigate all facets of financial planning. The services you procure should focus on meeting both long- and short-term goals. Just think, if you retire at 65, you may need 35 years of savings! This underscores the fact that your financial advisor should be able to provide the right services and support as your needs change. As you age and go through life events like marriage, children, home purchases, retirement, etc., you will require different services and expertise to guide you. The firm you choose should be able to accommodate all aspects of your wealth management.
Understand the Different Compensation Models
When you agree to work with a financial advisor, you’ll be agreeing to pay that person or organization to provide services. But what happens if your advisor’s compensation and your financial goals are at odds? This can happen, and often does. Which is why it is important to know how financial advisors get paid.
For example, if your “advisor” is compensated only when an investment is traded or
procured, there is certainly an incentive for your advisor to make investments
and trade, but where is the incentive to help you grow your wealth?
Dechtman Wealth Management is a fee based financial advisor. Our fees are based on your portfolio’s size, so we have an incentive to help you grow. Ensuring that your goals and your financial advisor’s goals are aligned is one of the most important elements of choosing an advisor.
Investigate the Competencies of your Prospective Financial Advisor
Your financial advisor should be well prepared to serve you and have the background and
credentials to do so with expertise and authority.
Your advisor should be a Registered Investment Advisor. That means they have received the proper credentials to help you navigate the complexities of investment planning and management.
Beyond being a Certified Financial Planner, your advisory firm should have experience. Dechtman Wealth Management, for example, has provided financial and investment advisory services for thousands of individuals
and families for more than 30 years. That kind of experience cannot be overvalued.
Decide How Much Help You Need and Want
Every person has different levels of financial education, background, and knowledge. As such, when seeking a financial advisor, you will require a different level of engagement than the next person.
There is always a case for Self-Directed 401k plans for the right person at the right time, but
this is not typical. Similarly, there are cases where estate planning can be accommodated by using an online
tool. However, self-directed retirement plans and estate planning is not something most people are comfortable with, not to mention capable of navigating!
The best financial advisors will do two important things: align their activities with
your short- and long-term goals and provide the education and clarity you need
to be comfortable with the plan.
Choose Your Financial Advisor
After you understand your options and consider your goals, it is time to choose your
financial and investment advisor. Dechtman Wealth Management tries to make this an easy choice. When you engage Dechtman Wealth Management, you’ll find a disciplined investment process, transparent information, easy to understand fees. and proactive services.
From determining the services you need, to choosing your financial and investment advisor, we’re here to help. Call us today to begin your journey.
Important Disclosure Information
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.dechtmanwealth.com.
Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.
Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
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