The advancement of technology has made it possible for people to become their own financial advisors, but if you don’t know a lot about how this field works or you don’t have the time to do the necessary investment research, then hiring a financial advisor in Fresno is in your best interest. To find the right one, you need to avoid the following mistakes.
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5 Mistakes to Avoid When Hiring a Financial Advisor in Fresno
1. Not Knowing What You’re Looking For
A financial advisor is not the same as a broker. One gives you advice on what you should be doing with your money (financial advisor), while the other invests your money in stocks (broker).
Knowing the difference between these two jobs—and others that are part of the financial field—is essential when it comes to making sure your money is being taken care of.
2. Not Doing a Background Check
It’s easier than ever to find a Fresno financial advisor online, but you need to make sure you’re working with a professional who is trustworthy and reputable. Before doing anything, it’s in your best interest to conduct a background check and call references.
3. Not Working With a Qualified Professional
This one goes along with doing a background check and references. Not only should the advisor you work with be a professional, but they should also have experience. Check to see what kind of credentials they have and how long they’ve been in business.
4. Failing to Understand What Is Happening to Your Money and the Fees Involved
Financial advisors can offer really good advice to ensure you have money now and in the future, but they don’t do this job for free. A mistake a lot of people make is not asking questions about what is happening with their money and how the advisor gets paid.
Don’t be afraid to ask these questions during your initial meeting. If the person doesn’t give you a straightforward answer, they may not be the advisor for you. Should you find that the fees or payment plan for their services is too high, then keep looking for someone you’re comfortable working with.
5. Not Having Realistic Expectations About Financial Returns
Investing money comes with a lot of risks. While it would be nice to say you want to see a certain amount of return on your investment, the only guarantees you can get is if you invest in a CD.
If you don’t know what to expect, talk to your advisor, but be ready to learn that what you might earn may not be what you hoped. Keep in mind that the market dictates this return, not your advisor.
Working with a financial investor can be a great way to ensure that your money is working for you. Finding the right one means knowing exactly what you’re looking for and what you need, as well as having realistic expectations about financial returns. Having this knowledge should help you find an advisor that will potentially make your life incredibly comfortable.
