Your financial future may depend on it
Jim Yih,
Sun
Most people would agree that finding a good financial adviser is pretty important. Sound financial advice can make big differences in your financial future.
It can be the difference between financial freedom and just making ends meet; or the difference between early retirement and working in the golden years; or maybe the difference between peace of mind and financial disaster.
Unfortunately, finding a good financial adviser can also be difficult. Here are some simple tips to help you find good, professional advice:
– Be prepared. Start with knowing what you want and don’t want from an adviser. Everyone is at different financial stages of life.
Some people need financial advisers to help with life insurance because they have young families. Others need investment advice for their sizable portfolios. Some want to create retirement income in their golden years.
Whatever the case may be, you can’t get proper help without being able to articulate what you are looking for.
– Get a referral. There are thousands of advisers in your area. Picking an adviser from the Yellow Pages is like finding a needle in a haystack.
The better way is through word of mouth. If you want a great adviser, ask your friends and family if they are dealing with a great adviser.
– Interview multiple advisers. Even if you get a good referral, how do you know if that adviser is right for you? Increasing your chances of finding the right adviser requires meeting more than one. You should never feel obligated to deal with the first one you interview. It’s better to interview multiple advisers because it allows you to compare their strengths.
– Recognize that there are generalists and specialists. The term financial adviser is too generic these days.
One-stop shopping with a generalist has some advantages but recognize there are times when you should be dealing with experts.
If you are looking to invest in some mutual funds, wouldn’t it make sense to talk to a financial adviser who really understands investing as opposed to someone who specializes in insurance and estate planning? Don’t be afraid to ask a financial adviser what they are good at. In fact, you should ask if they have a specialization.
– Focus on the person and not the company. Far too often, I hear people deal with a company like a bank as opposed to an adviser. Every company has good advisers and bad advisers. That’s just the law of averages.
Most advisers will change companies from time to time. Staying loyal to a company may mean changing relationships from time to time because your adviser changes. Sometimes you may luck out and get one of the good reps.
Other times, you may not be so lucky. It is more important to find someone you can develop a long-term relationship with regardless of what company they work for. It’s better to have a relationship with a person than a company.
Finding the right adviser might be hard work, but it is worth it.
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Jim Yih can be reached at [email protected] or through his website www.wealthwebgurus.com
© The Vancouver Sun 2008