Financial Advise

My Journey In Finance

A financial advisor is a professional who helps you understand the many choices that are available to help you achieve your goals. A good financial planner can be an invaluable asset in planning for retirement, college education and other major life events such as buying or selling a house, getting married, having children, etc.. The first step towards finding a qualified Financial Advisor is by asking friends, family members, colleagues and others about their experiences with various advisors. Once this information has been gathered it should then be used as a guideline when selecting a particular person from which to receive advice.

What does “financial independence” mean?

Most people think of financial independence as being able to retire early. This means having enough money saved up to live off without working. However there are also ways one can become financially independent before retiring. Examples include: Having sufficient funds to pay for healthcare expenses while still living comfortably, paying down debt, saving money for future educational needs, starting businesses or investing wisely. In short becoming truly financially independent involves creating options for yourself to make decisions based upon how much time you want to spend doing things versus money.

How long have you been practicing/doing this type of work?

This question gives them an opportunity to tell you something about themselves. For example; “I’ve been practicing my profession for 10 years now, but I just recently started taking clients.” Or another option might be “My father was a broker and he taught me everything I know.” It could even go like this: “Well, I’m looking forward to helping you accomplish whatever goal you are striving for, and ensuring that you stay within your budget.”

You get the idea…this allows them to show off their expertise, offer examples of success stories, and give you insight into where to find more resources. Another way to answer this question is to simply respond with something along these lines: “That sounds great. Tell me more…how did you learn all this stuff?” Sometimes people may feel awkward answering this kind of direct question, so let’s see how it goes. Afterward try to remember any interesting details that were shared.

Do you charge fees upfront?


This question isn’t necessarily meant to cause alarm. Most investment professionals don’t require advance payments because most of their income comes from commissions after investments are sold. But the fact remains that those who invest frequently often need to borrow money to fund purchases. And since interest rates keep rising, borrowing costs are increasing too.

That makes it important to choose someone you trust – and won’t take advantage of you. A good rule of thumb is never to lend anyone else money unless you’re 100% confident in his ability to repay. So always insist on getting references first. The best thing to do is to look online and search reviews for the advisor. Also check out sites such as Better Business Bureau to ensure you’re dealing with legitimate businesses.

Then contact each reference company directly. Ask them how many clients they’ve referred over the past year. How long had they worked together? What types of accounts did they handle? Did they ever lose money on the account handled by the referral source? Do they have experience managing high net worth individuals? High Net Worth Individuals, commonly known as millionaires, come in different flavors. Some are wealthy from inheritance others earned through business ventures. Many HNWIs fall somewhere between these two extremes. They typically earn a comfortable salary yet enjoy substantial wealth.

As their assets grow, however, they tend to change advisers and seek new services. Are you willing to help them navigate through the process? Does your firm provide ongoing support? These are both very important factors to consider. When choosing an adviser you must understand whether you are going to be spending a lot of time educating them, or whether they will educate you. Either way, you should expect certain standards of service throughout the relationship.

Are you licensed to sell securities in my state?
What’s Your Investment Strategy?

Most financial advisors want to know what type of investor you are before determining which strategy suits your needs. If you plan to hold stocks for years at a time then a stockbroker might not be right for you. However if you only intend to buy one stock every couple months, then it might make sense to work with a discount broker instead. Here are some other questions you can ask about your next step:

Does this brokerage allow free trades?

If you are looking for information about investing in real estate there are plenty of blogs and websites available. One of the largest sources of information is Money Magazine. It provides tips on everything from buying property to refinancing mortgages. Other options include Yahoo Finance and Kiplinger.com. There are also countless books that cover various aspects of investing including Real Estate Investing For Dummies, Real Estate Investing Made Easy, and Real Estate Investing Secrets Revealed. All three of these titles are written by experts in the field and are sure to shed light on the subject matter.

When we said earlier that you shouldn’t listen to advice blindly, we weren’t kidding! In order to avoid being scammed, you need to know exactly what you’re doing when it comes to picking an advisor. Otherwise, you could end up losing thousands of dollars down the drain.

My Financial Advice Reference

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