As you approach retirement, your financial decisions often become more complex. Now, more than ever, it might be time to enlist the expertise of a local financial advisor who can help guide your retirement planning process. Yet, the quest to find a trustworthy financial advisor in Cleveland, Ohio can be daunting. When it comes to selecting a financial advisor for your retirement in Cleveland, it’s not as straightforward as, say, choosing the latest technology gadget. A simple online search for stellar reviews and competitive pricing won't cut it. There’s an ocean of financial advisors, both in the Cleveland area and across the U.S., each offering a suite of services at various price points. At Advance Capital Management, located in metro Cleveland, we recognize that selecting a financial advisor is a crucial decision. It’s about building a relationship based on mutual trust and comfort – it’s your life savings on the line, after all. You can see how we’ve helped guide people toward retirement for nearly 40 years by checking out the retirement planning services we offer. Our commitment is to empower you with knowledge. When we consult with you, we ensure that you're equipped to discern the essential qualities in financial advisors by covering the topics discussed in this article. By understanding these elements, you can confidently navigate the choice before you. The following are six critical aspects to weigh when comparing Detroit financial advisors: Not all financial advisors are created equal. In Cleveland, as elsewhere, the key difference is how they’re regulated.How a financial advisor is regulated
Registered Investment Advisors (RIAs) like Advance Capital Management are governed by the Investment Advisors Act of 1940, which obligates us to uphold the fiduciary standard – the legal duty to always act in your best interest.
On the flip side, registered representatives or brokers operate under the SEC’s Regulation Best Interest rule, which, while rigorous, doesn't match the fiduciary standard. RIAs are directly remunerated by their clients and always prioritize their clients’ interests. If the word ‘fiduciary’ still sounds confusing, don’t worry, this article covers everything you need to know.
What to ask: Are you a fiduciary, and what does that mean for me?
What services are offered
The scope of services among Cleveland financial advisors can vary greatly. It’s imperative to lay out your specific needs – from investment management to tax planning – and ensure the advisor can cater to them.
Additionally, some advisors might specialize in areas such as retirement planning in Cleveland, catering to those nearing or navigating their post-work life in Ohio.
What to ask: What financial services do you provide? Do you provide advice for all areas of my financial life? What is your investment philosophy and how will you manage my assets?
How much the financial advisor charges
Among financial advisors in Cleveland and elsewhere, fees can be structured in several ways: as a percentage of assets under management (AUM), as hourly or fixed fees, or through commissions. Fee-only financial advisors, who often operate under an AUM model, are typically RIAs with fiduciary obligations.
Remember, while affordability is crucial, the goal is to get value for services rendered, matched to your requirements.
Learn more about the cost of hiring a financial advisor here.
What to ask: Can you tell me the total costs and fees of your services? How do you and your firm earn your compensation? Who will have custody of my assets?
What type of clients are served
Choosing a financial advisor attuned to your financial planning needs means considering their typical clientele. Some advisors specialize in serving distinct groups – professionals, business owners or retirees – offering targeted insights and strategies.
If you’re looking for a Cleveland retirement planning expert, verify that their expertise aligns with your career stage and financial goals, ensuring a partnership that can navigate your unique retirement landscape.
What to ask: Who is your typical client? How many clients do you serve?
The financial advisor’s background
One way to avoid getting into a bad relationship with an advisor is to thoroughly vet their background. An advisor’s background includes their experience, credentials, firm culture and more. RIAs are mandated to file an ADV form with the SEC, detailing their business practices and any disciplinary actions – a critical resource for your research. Tools like the Financial Industry Regulatory Authority’s BrokerCheck can help you verify an advisor’s history.
What to ask: What credentials back your expertise? How many years have you been advising clients? Do you have any disclosures I should be aware of?
Your preferences
Choosing a local financial advisor in Cleveland for your retirement needs isn't just about their credentials—it’s about your comfort and how well they align with your expectations. Do you prefer a local touch, someone who understands retirement in Cleveland, or are you fine with remote interactions? Communication frequency and the advisor’s approach to client engagement are also personal choices you should consider.
What to ask: What is your approach to client communication? How often will we meet? Will you proactively contact me?
The bottom line
Investing time in finding the right financial advisor pays off. According to research by Herbers & Company, individuals who collaborated with a financial advisor reported nearly threefold greater happiness compared to those who didn't.
As you embark on retirement planning in Cleveland, consider each advisor carefully, and select one who will illuminate the path to a secure and fulfilling retirement.
If you live in the Cleveland area or Ohio and are looking for retirement planning help, schedule a free consultation with an Advance Capital Management advisor today here. One of our Cleveland advisors will gladly meet with you to discuss your financial goals and build a personalized plan that adapts to your needs.
Advance Capital Team
Advance Capital Management is a fee-only RIA serving clients across the country. The Advance Capital Team includes financial advisers, investment managers, client service professionals and more -- all dedicated to helping people pursue their financial goals.
