Choosing who to trust to manage your life savings and prepare you for retirement is a huge decision. You’ll want someone who has experience and knowledge in the industry and who will work hard on your behalf. Most of all, however, you want someone who has your best interests in mind and who will lead you in the right direction.
To find that person, you’ll need to ask the right questions. For example, if you are interested in tax-free investments, you’ll want to feel confident that your advisor has the most accurate and current information about these types of investments. You’ll also want to know that they will give you sound advice in regards to your financial situation with the kind of investment you’re interested in pursuing. But you’ll never know unless you sit down with them and have a conversation that begins with these questions:
Are you a fiduciary?
When searching for someone to help you with your savings, perhaps the most important thing you need to know is if they are a fiduciary. A fiduciary is an advisor who is legally obliged to act in the investor’s best interest. As a fiduciary, they are legally bound to provide you with the advice that will help you the most.
A stockbroker, on the other hand, works for an investment firm and is hired to persuade investors to buy financial products, like stocks. Stockbrokers work on commission and won’t receive any money unless their clients purchase from them. They are not under any obligation to provide you with the best advice and typically only have their company’s interests in mind.
What is your success rate?
An advisor with nothing to hide should be fairly forthcoming about their successes, as well as their failures. Ask for a copy of Form ADV, which discloses any conflicts of interest or disciplinary information about the advisor, along with their fees, background, experience and the like.
How do you make money?
Typically, advisors make their money by charging their clients management fees. Usually, that’s about 1 to 1.5 percent of the amount of assets under management. Some advisors, however, make their income by charging hidden commissions and fees. If your advisor isn’t clear on how they benefit from working with you, it’s probably best to find someone else.
Who should you trust?
Financial advisors can make or break your retirement. As such, it is essential to work with someone you can trust.
Jason Graziani has helped investors in the Frisco area manage their retirement funds and other investments so that they can live their lives to the fullest.
If you have questions about tax-free investments or other financial decisions, call Jason Graziani at (972) 992-1920 or visit http://jasongraziani.com/.
Jason Graziani | Tax Free Investments Frisco TX | (972) 992-1920