Who is your financial advisor and how do you pay them? While a majority consider these two questions none of their concern, they have a direct effect on the type of advice and the quality of services you receive.
It is not every financial advisor who will put your business interest first. Although the financial advisor categories can be confusing, it is critical to understand them to ensure you are hiring the right one.
Vast knowledge, professional-level management skills, and financial planning methods expert are the qualities of a financial advisor everyone is looking for in Connecticut (CT).
You can hire financial advisors for a general purpose, such as early retirement planning, or for a specific project, such as creating an estate plan or buying long-term health insurance. However, before hiring one, knowing the various types is important in order to get one suitable to your needs.
This type operates a hybrid business and operations model. Fee-based advisors should disclose — in writing — when the strategy of the product they are recommending you gives them a commission.
Fee-only financial planners
You will hardly find them in brokerage houses or large banks. There are no chances of a conflict of interest since they do not sell or receive compensation for any financial products.
Registered investment advisors
They offer customized financial advice to your needs and in most cases, for complex financial requirements.
Depending on your goal, you may choose a financial advisor who can effectively address your needs and wants or one who has their interest pegged in the business too. Always keep evaluating your business to see how well or badly you are doing with your financial advisor.