Q: Why should I hire a financial advisor to manage my money?
A: A financial advisor will be able to connect all of the financial components in order to provide you with an overall plan to meet your financial targets. He or she should have training and experience in all kinds of financial products and financial aspects of your life – equities, bonds, insurance, taxes, and estate planning – in order to make the right recommendations for your personal situation. A financial planner can also save you thousands of dollars in tax deductions and find higher-yielding investment products at little or no extra risk.
Q. What is your investment approach?
A. If you’re looking for someone who makes investments consistent with your risk tolerance and goals, then I can help you.
Q: How much does a financial advisor cost?
A: The fees will vary depending on how the fees are assessed. In general, a financial advisor will charge based on one of two ways: commission or fee-only. If the planner charges based on commission, the amount will usually be a percentage of each transaction or assets under management. If the compensation structure is fee-only, he or she will typically charge an hourly rate or will quote a specified fee for the services provided.
Q: What is fiduciary responsibility?
A: Fiduciary means to hold a confidence or trust. A financial services industry professional who has a fiduciary responsibility to his or her clients must put a client's needs and interests ahead of his or her own.
Q: What is involved in financial planning?
A: Financial planning looks at a person's overall financial picture. A financial planner will often ask a prospective client to fill out an extensive questionnaire in order to understand his or her financial needs and goals. The planner will usually put together a detailed, short-term 5-year plan designed to improve the client's overall financial position. That may be followed by a long-term plan, along with suggestions about how to save and invest for retirement and a child's college education at the same time. The planner will also look at ways to reduce current and future tax liabilities and protect assets by having the proper life, health, disability and long-term care insurance coverage in place. Finally, he or she may offer suggestions on estate planning.