5 Important Questions To Ask Your Retirement Advisor LAURENT CARRIER
A financial advisor examines your goals such as saving for investment and help you prioritize, save and invest for them.
Whether you have started saving for the golden years or you are just about to start, the importance of financial advisor to walk you through the whole process, provide guidance and ensure you are financially prepared cannot be overemphasized.
However, you will working with your advisor for years, hence, choosing the right one is essential.
After all, it’s your lifetime investment and it has to be entrusted in safe capable hands.
Laurent Carrier, areputable retirement planner, brings to you the most important questions to ask your retirement financial advisor when you are choosing one.
Their experience, skills, capabilities, and philosophies are all that make for a good retirement planning.
Are you a fiduciary?
Fiduciaries have a legal duty to act in the best interests of their clients.
Hence, if you come across a financial advisor that is putting their own interest ahead of yours, you may want to keep looking.
Some financial advisors work for clients but might not put in their interest in the first position.
Why would you pay for services that do not make your interest their priority? What benefits does it make if what you opted for doesn’t work in your interests? Non-Fudiciary recommendations might not always be the most suitable for your goals.
How do you get paid for your services?
You are likely going to get a broader answer that will give you more insights into how your advisor is being compensated rather than asking how will I pay you.
From flat fee to commissions to asset management fees, financial advisors have a variety of fee structures they incorporated.
“To keep things safe and simple, it is best working with the ones that charge per fee rather than on commission, that way you know you are paying for the services, not for commissions on products that might come with higher prices,” says Laurent Carrier.
There are no hidden costs, more transparency, and no ”sales interest” in selling certain company offering.
The bottom line is everyone wants to get the most of their payments and the best value of what they are paying for.
This isn’t difficult when you work with the right financial advisor.
How long have you been working in this field?
In your best interest, you might want to consider choosing someone who has the right qualifications, expertise with years of experience in the field.
There are credentials that include Certified Financial Planner (CFP), The Chartered Financial Analyst (CFA)), or the one that specializes in retirement planning, which is Retirement Income Certified Professional (RICP).
While at it, ensure your financial advisor has practiced for long with years of experience retirement planning.
A potential advisor may have experience in the mortgage or banking industry, but not in retirement planning.
Your life savings are at stake, work with the best to get the best results.
Who holds my investment and money?
Your advisor should not also act as a custodian for your money but should work with a financial institution, brokerage or bank that will act as one.
The custodian is not entitled to making decisions on retirement planning but is responsible for the protection of your money from theft and keeping it secure.
Your financial advisor, on the other hand, is responsible for making decisions and ensuring your goals are met, but should not be in contact with your money.
The best way of saying “No” to embezzlement or fraud.
What are your investment philosophies?
You want to ensure you and your advisor are on the same page, hence ask about their strategies and approaches to give you an insight into their philosophies.
From response to market fluctuations to strategies that can be either aggressive or conservative or “ok” for your needs.
Weigh the options and consider how all these will work in achieving your goals to ensure you have a successful retirement.
Thank You!!!