Defensive Sectors | Financial Advisor in Apex, NC (2024)

FAQs

What will a financial advisor ask me? ›

A good financial planner will ask you about your goals: What do you want to achieve? What's most important to you? What do you want your life to look like?

The National Association of Personal Financial Advisors (NAPFA) is a good place to start your search for help. The Financial Planning Association (FPA) will also be able to help you locate a planner in your area, and always hire a fiduciary, who will act in your best interest.

The right amount of money you'll need will depend on what you're looking for a financial advisor to do as well as how much you'll have to pay in fees. Generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor.

The certified financial planner exam is likely the hardest test you'll ever take, Dorsainvil says. "Think of the hardest exam you took in college then times it by 10." Preparing to take the CFP exam begins months or even years before you actually sit to take the test.

You'll have in-depth conversations about your finances, short- and long-term goals, existing investments and tolerance for investing risk, among other topics. Your advisor will work with you to create a plan tailored to your needs: retirement planning, investment help, insurance coverage, etc.

Ultimately, whether or not a financial advisor will be worth your money depends on your specific situation and the financial advisor you choose to team up with. If they align with your goals, listen to your needs and act in your best interests, they will most likely be a good financial investment.

How do I talk to a financial advisor? ›

Regardless of background or net worth, most clients and investors want much the same things from their advisors—trust, competence, integrity, respect and understanding. The conventional wisdom, it seems, is good advice.

Many may ask “is 1.5% too much?” and the answer is that it depends. While 1.5% is on the higher end for financial advisor services, if that's what it takes to get the returns you want then it's not overpaying, so to speak. Staying around 1% for your fee may be standard but it certainly isn't the high end.

Experts recommend that you meet at least once a year with a financial advisor to discuss your investment plan and review your risk tolerance and cash flow objectives.

Industry studies estimate that professional financial advice can add between 1.5% and 4% to portfolio returns over the long term, depending on the time period and how returns are calculated.

A financial planner assists with creating and coordinating comprehensive financial plans, while a financial advisor can offer advice on investing money wisely within those plans. Financial planners may sell commission-based products like life insurance and require a license from their state regulatory agency.

Adviser. There are two common spellings for this financial term. U.S. laws and regulations spell out the rules for financial advisers, while many investment firms and media default to the more familiar advisor. Regardless of the spelling, all agree that there is no meaningful distinction between the two terms.

In the financial world, advisors and planners are compensated in one of two basic ways: by earning flat fees or by earning commissions. A fee-only financial advisor is paid a set rate for the services they provide rather than getting paid by commission on the products they sell or trade.

Is financial advising a lot of math? ›

Math skills: Constantly working with numbers means that financial advisors need to have excellent math skills. They must determine the amount to be invested, how much that amount will decrease or increase over time and how to create a balanced portfolio that includes a variety of investments.

What Percentage of Financial Advisors are Successful? 80-90% of financial advisors fail and close their firm within the first three years of business. This means only 10-20% of financial advisors are ultimately successful.

According to the Wall Street Journal, the CFA exam is the most difficult exam in the world, with less than 1/5th of candidates clearing it, after repeated attempts, on a yearly basis.

An advisor who believes in having a long-term relationship with you—and not merely a series of commission-generating transactions—can be considered trustworthy. Ask for referrals and then run a background check on the advisors that you narrow down such as from FINRA's free BrokerCheck service.

There are three fundamental concepts that make for a successful financial advisor: Having an excellent track record of great service and performance. Maintaining a professional reputation in order to retain and attract clients. Developing business acumen through training and education on market conditions and finance.

Key Takeaways. Successful financial advisors have a large book of client business and a track record of performance and service. Getting clients and having them stick with you—and recommend you—means being professional and putting your clients first.

As we explain in our article about understanding financial advisors, most financial advisors do not have access to your money. You are the one who gives them permission to use your money and it is up to you to decide how much access they have.

Much like you're researching potential financial advisors, they are also checking you out. They'll look at your bank statements, pay stubs, outstanding debts, and investments. While this helps them see how they can help you, it also gives them a way to sell you more so they can make more money.

During the first meeting with your financial advisor, expect a thorough assessment of your current financial situation. They'll ask a number of questions to get a better understanding of your life – money, family and personal goals included.

Financial advisers look at your personal circ*mstances and your financial plans and recommend products to help you meet your needs. There are two types of financial advisers: independent financial advisers (IFAs) give unbiased advice about the whole range of financial products from all the different companies available.

What is common advice from financial advisors? ›

During the first meeting with your financial advisor, expect a thorough assessment of your current financial situation. They'll ask a number of questions to get a better understanding of your life – money, family and personal goals included.

The key questions financial planning must answer are: What specific assets must the firm obtain in order to achieve its goals?, How much additional financing will the firm need to acquire these assets?, How much financing will the firm be able to generate internally (through additional earnings), and how much must it ...

Your financial planning advisor will: Review your credit report with you. Assess your finances and educate you on ways to improve your financial situation. Help you create a budget plan.

Ultimately, whether or not a financial advisor will be worth your money depends on your specific situation and the financial advisor you choose to team up with. If they align with your goals, listen to your needs and act in your best interests, they will most likely be a good financial investment.

Although they do their utmost to hammer home the importance of proper planning, advisors don't necessarily follow their own words of wisdom. They can fall victim to the same behavioral biases as their clients and end up making questionable financial decisions.