While good guidance from a qualified financial planner can mean the divergence between a triumphant retirement and outliving your money, most people would not trust most financial advisors with their own money. Simply, they do not trust most alleged ‘financial advisors’ because they are not qualified. Regrettably, no credentials are obligatory in order for a person to give himself the designation of financial advisor. An 18-year old high school student has as much right to mention himself as a financial planner as any specialized in the industry.
While these individuals work in the finance industry, are the mainstream truly financial planners? If you seek guidance from a ‘financial advisor’ who is essentially an insurance agent, what suggestions are you most liable to receive? You will possibly be told to acquire annuities and life insurance. Likewise, a stock broker is likely to recommend bonds, stocks, and mutual funds, but will they do any actual preparation to settle on if you are on pace to meet your retirement targets? Not likely. The employment functions that most individuals associate with financial advisors are basically not performed by most financial experts.
How can you make sure your advisor is a genuine financial planner who will look at all elements of your monetary situation and pay attention for your best interest? Predominantly, look for a Certified Financial Planner (CFP). Certified Financial Planners must go through two years of rigorous training followed by a meticulous two-day examination (with a pass rate of just about 50%). A code of moral principles must be adhered to and contribution in a continuing education program is obligatory. CFPs are qualified in many facets of the financial-services industry, including insurance, investments, taxes, retirement planning, estate planning, and more.
The other criterion in a financial expert like Keith Springer is to make sure they are objective. Can an advisor who is paid a commission for advocating one product over another actually watch out for your best interest? Regrettably, most advisors at insurance companies, brokerage firms, and banks face this predicament. To evade this conflict of interest, employ fee-only financial advisor. These planners never accumulate commissions from the products they suggest, and are paid exclusively by their clients so as to represent their best interests. Fee-only planners get paid for the project, by the hour, or as a proportion of the assets they handle for the clients.
Significantly, fee-only advisors are fiduciaries, meaning they are essential by law to put your interests first, similar to an accountant or a doctor. Commission-based advisors are not held to the same criterion. In reality, they are required by law to act in the best interest of their owner.
Choosing to work with an experienced financial planner like Keith Springer can considerably increase your odds of achievement. Investors who take up the services of a good financial advisor are much more liable to improve their long-term outlook and reach their retirement goals. Set the bar lofty so you finish up with an advisor who is ethical, competent, and on your side.