Do you wonder how could a financial advisor help me or how to get started with one?
West Financial Advisors shares who could benefit from working with a financial advisor, what kind of services are typically provided, and how to find a qualified advisor.
Who benefits from working with a financial advisor
Working with a skilled financial advisor has benefits for people in all life stages. Young households can learn about budgeting, saving, investing, taxes, and more.
For couples, hiring an advisor can be the perfect time to start thinking about finances as a team. Generally, opposites attract and this is true with finances as well. Many relationships have one spender and one saver. Working with an advisor is helpful when deciding how much to save, how to cut spending if necessary, or defining financial security.
Single households also find value in having a sounding board to bounce ideas off.
What kind of services are provided
The term financial advisor is broad.
- Some advisors work primarily as portfolio managers who give investment recommendations and manage accounts.
- Others in the investment wheelhouse are transactional and simply execute investment orders.
- Product focused advisors work in the insurance arena and sell life, disability, annuity, and other insurance products.
- Financial planners evaluate all aspects of one’s financial life. They develop recommendations based on long-term goals and help implement those recommendations over time.
It is important you understand what services you want before hiring an advisor. Ask if there are limitations in an advisor’s ability to assist in financial decision making. Make sure they are qualified and able to assist with decisions that impact your unique situation.
How to find the right financial advisor
Finding a professional to meet your needs can take some time. Here are some questions to ask:
- What is their education, experience, and credentials? There are a host of certifications available in the industry with a varying degree of rigor. For example, the CERTIFIED FINANCIAL PLANNER™ certification requires extensive coursework, a background check, and a certain level of experience and education.
- Do they have your best interest in mind? A fiduciary is a professional who is required to act in the client’s best interest. West Financial Advisors hold membership with NAPFA. They are certificate holders with the CFP Board, the CFA Institute, and the State of Iowa. All of these organizations require that advice be in the best interest of clients, for all areas of finance, at all times. Ask if potential advisors are bound by a fiduciary standard.
- How are they compensated? Financial advisors are paid in many different ways. Some advisors work off of commission and are paid for transactions such as making investment trades or selling products. Others are paid a fee by the client and may charge a fee by the hour, a flat planning fee, or most common is a fee as a percentage of assets that are managed. Ask how they are paid, by whom, and what services are provided in return.
Regardless of your situation, there are benefits of working with a qualified financial advisor. Check out NAPFA’s Advisor Checklist if you want to learn more about how to hire a qualified advisor.
Connect with West Financial Advisors
Online at westfinancialadvisors.com
Twitter at West Fin Advisors
Facebook at West Financial Advisors, LLC
(515) 284-1011
111 East Grand Avenue, Suite 412, Des Moines, IA 50309
