Financial advice isn't just for the wealthy. In fact, the right guidance early in your financial life can have the biggest impact on your long-term financial health. That's why it's important to find a financial advisor who can help you make smart decisions about your money.
But with so many investment services near you, how do you choose the best financial advisor? Here's a look at the types of financial advisors and our four-step guide to picking the best one for you.
Types of Financial Advisors
There are three main types of financial advisors: commission-based, fee-based, and fee-only.
Commission-based advisors earn money by selling financial products like stocks, bonds, and mutual funds. They may earn a commission on these sales, which can create a conflict of interest if they recommend products that aren't in your best interest.
Fee-based advisors charge a fee for their services but may also earn commissions on financial products they sell. This can create another conflict of interest, as they may recommend products that pay them a higher commission.
Fee-only advisors only charge a fee for their services and don't earn commissions on any financial products they recommend. This makes it less likely that they'll recommend products that aren't in your best interest.
Our Four-Step Guide to Choosing the Best Financial Advisor
Step 1: Determine What Type of Advisor You Need
Consider your financial goals and what type of advice you need. Do you need help with retirement planning? Investing? Tax planning? Estate planning? Depending on your needs, you may want to look for a financial advisor who specializes in these areas.
Step 2: Research Potential Advisors
Once you know what type of advisor you need, start researching potential advisors. Look for advisors who are licensed, experienced, and have a good reputation. You can find advisors through professional organizations like the Financial Planning Association or the National Association of Personal Financial Advisors.
Step 3: Interview Potential Advisors
Schedule interviews with potential advisors to learn more about their experience, services, and fees. Ask them about their investment philosophy and how they'll work with you to achieve your financial goals. Make sure you feel comfortable with their approach and communication style.
Step 4: Make Your Choice
Once you've interviewed potential advisors, compare their services and fees and choose the one that best fits your needs. Remember to review your advisor's performance regularly and make changes if necessary.
Bank of America and Chase are two financial institutions that offer investment services. Bank of America is one of the world's largest financial institutions, offering various innovative solutions for individuals, businesses, and institutions. Chase offers priority service, exclusive perks and benefits, as well as investing strategies and insights from J.P. Morgan Wealth Management.
When considering places to buy a money order, compare their fees so you can get the best deal. Use this guide to help you choose the best place to buy a money order.
In the financial services industry, a fiduciary is obligated to put clients' interests first when making investment decisions for them. This means that they have a legal responsibility to act in your best interest and avoid conflicts of interest.
The best financial advisors offer financial planning and investment management for a low fee. Find the right financial advisor for you with our four-step guide.
