When you have specific health complications, you want to make sure that you have the right medical specialist to assess your situation, right? Well, in the case of your finances, you will want to make sure you have an upper hand to prevent unexpected hiccups. Most of us need assistance in managing our finances, as it can be a tedious task to complete. So, how do you know which financial professional is the right one for your unique case? Here’s how you can find the right investment advisor in Indianapolis.
#1 - Figure out where you need help.
It’s important to recognize the areas in which you need the most help across all your finances. For an advisor to add value beyond stocks and bonds, you and your advisor will need to form a strong relationship for many years. This bond will yield transparency with your financial advisor, whose job is to help you create a healthier financial lifestyle by looking at the panoramic view of your situation, rather than just one specific instance. The panoramic view may include guidance on your taxes, retirement plans, estate planning, and real estate investing recommendations that will ensure your family’s protection for decades to come.
#2 - Educate yourself on the different types of financial advisors.
While some financial advisors are genuinely devoted to helping you succeed, it is also important to remember that some financial advisors do not always have your best interests at heart. This is why it is important to understand the types of financial advisors.
- Fiduciary Advisors: Some financial advisors, but not most, are required to adhere to a fiduciary duty. What this means is that the financial advisor is legally bound to provide you with advice that is in your best interest. On the other side of the spectrum, however, there are some advisors who recommend costly services or products, even though they may not fit the budgets of the clients.
- Fee-Only Financial Advisors: “Fee-only” is a term used by many financial advisors at Wall Street banks. These advisors typically charge an assets under management fee. They may charge a commission on life insurance or long-term care for this additional service. While most of these advisors also serve as fiduciaries, their employers do not typically allow the advisors to refer to themselves as fiduciaries. As a result, clients cannot be guaranteed that the advisor must act in the client’s best interest at all times.
- Commission-based advisors: While some financial advisors make their salary by only charging fees for their services, commission-only advisors make money from the products and investments you purchase. For products like life insurance, this is straight-forward since there usually is a commission for the insurance broker or financial advisor. However, there are moments where you will want to be wary of financial advisors who only make their money from commissions. Some of them follow suitability standards, which means that they are looking for what suits your needs but is not necessarily what is best for you.
As an additional rule, it is wise to ensure that the team of advisors you choose have verifiable credentials. At least one person should be a Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA). For both of these certifications, the advisor must attest annually that they always put their clients’ interests first.
#3 - Conduct research on financial advisors in Indianapolis.
Make sure to research the person who will potentially manage your finances. It is great to select a person who practices integrity to the fullest extent. You may also ask the following questions:
- Are you a fiduciary?
- Do you deliver financial planning and investment management or only investment management?
- Who is your typical client?
- How do you receive compensation?
- What are my total costs?
- What are your credentials?
- What is your approach to integrity?
- What investment benchmarks do you use? Why?
We do not recommend you ask “How much money do you manage?” This is akin to asking a builder “What’s the biggest house you’ve ever built?” The pure size has nothing to do with the skill and quality of the product. It’s more important to find the right fit––a financial advisor who can help you achieve your goals.
Once you conduct ample research, and want a more relaxed approach to your search, you could also reach out to friends and family to let them know that you’re actively looking for a financial advisor in Indianapolis.
Delta Wealth Advisors wants the best financial outlook for you!
If you’ve ever asked, “Is a financial advisor worth it?” or “Do I need a financial advisor?” you’ll be pleased to know that people don’t wake up saying they need one. They wake up with a financial problem that needs a solution. With a great financial advisor, you can avoid stressing about the costs and put your concentration on the financial goals you have in mind. Delta Wealth Advisors is one of the most versatile accounting and planning firms in Indianapolis because we offer a full suite of accounting, tax, and financial planning services to meet your personal or business needs. You’re looking for a professional, honest, and caring advisor who has your best interest at heart, so contact us today to learn how we can serve you better!