Question: “My husband who took care of all our finances suffered a stroke. It seems that he will not be able to start his finances from now on. Now I take care of everything and I am burdened by my head. I have the feeling that our financial plan has prepared us to remove a lot of money from our investments – it is more than just a feeling. to them and I do not believe that anyone can have my interest.”
Answer: The short answer here is that your advisor can – and should – be transparent about the fees they charge. “Ask for a full breakdown of fees in plain English, including advisory fees, financing fees and hidden costs,” says Ben Waterman, co-founder and CEO of Strabo, a global consumer wealth management platform. A reliable professional will be happy to inspect, explain things patiently and will never pressure you to move the property quickly.
If you don’t get that, it’s time to move on: You can use this free tool from our marketing partner SmartAsset to trusted advisors, as well as sites like the CFP Board and NAPFA.
Pros say you should trust your instincts. Starting to manage your finances can be difficult for anyone, especially someone dealing with a loved one’s medical event. “It’s wise to check your gut,” says certified financial planner Susan Einberger in Enjoy the Ride: Financial + Life Planning.
In addition, “it makes sense to ask a consultant after a major event like this.” A health problem is often the reason people look below their financial security.
What kind of counselor makes sense?
Certified financial advisor Linda Grizely says the best way to get an unbiased second opinion is to find a qualified financial advisor or coach whose role is education. “That means they are only paid for providing advice or guidance and not commissions or fees related to your investment,” says Grizely.
When looking for someone to work with, it’s also wise to choose a professional who has experience working with clients like you. “I would make sure that anyone [you choose to work with] it’s up front and clear about how they make money and what they do for the client or the company,” says financial planner Luke Wonnacott at PROFi.
Having trouble with your financial plan or looking for a new one? E-mail questions or concerns to picks@marketwatch.com.
Another important metric that can be tracked is efficiency. Wonnacott says: “The CFP designation is the industry standard and designates an advisor who has the skills necessary to assist the advisor in all areas of a person’s financial life. Einberger agrees, and says: “A CFP must meet strict educational, experience and ethical requirements. There are certainly good and honest financial planners who make a positive difference in the lives of families; working with the right people will reduce stress and give you peace of mind.”
You probably don’t want someone who works on commission, as they may sell you products that aren’t always right for you. To find out if someone has a broker’s license or fiduciary certificate, Kelly Gilbert, a consulting agent and owner of EFG Financial, says you can use a website from FINRA called BrokerCheck. “This site will tell you the types of licenses the advisor holds. If the advisor has a blue circle next to their broker name, then their license may allow them to forgo fiduciary standards and sell commission-based products,” Gilbert says.
“On the other hand, if they have a green circle next to their name that says Investment Adviser, then they have a fee fiduciary certificate. Note: Many advisers keep both green and green. Those advisers can still sell commission products while charging a fee,” says Gilbert.
At the end of the day, the easiest way to get to the bottom of a situation like this is to hire a fee-only consultant who provides one-time or hourly plan reviews rather than an ongoing system, says Waterman. “They are paid directly by you instead of using commissions on product sales which removes the inherent conflict of interest,” says Waterman. Cost-wise, hourly planners typically charge between $200 and $500 per hour, depending on location and experience.
Remember that transparency is very important. “Trust is clearly built, not quickly. You deserve time, education, support and hearing before making changes,” says Grizely. You can use this free tool from our marketing partner SmartAsset to trusted advisors, as well as sites like the CFP Board and NAPFA.
Having trouble with your financial plan or looking for a new one? E-mail questions or concerns to picks@marketwatch.com.
Questions edited for brevity and clarity. By emailing your questions to an Advisor, you consent to them being published anonymously on MarketWatch; they may appear anonymously in the media and other forums.
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