Hiring a Retirement Financial Advisor can be a daunting task. With thousands of retirement-age people competing for the same jobs in the marketplace today, it is important to have sound retirement planning skills. Choosing an inexperienced financial advisor can result in costly mistakes. So, what are some common retirement financial advisor mistakes? How can you avoid them?
The first mistake that should be avoided at all costs is hiring a chartered financial advisor (CFP). A chartered financial advisor is typically a high-pressure sales rep who pressures clients into a stock or mutual fund investment based strictly on what the chartered financial advisor tells the client. Unfortunately, this can often be a mistake. There are many experienced retired people who have had to use a chartered financial advisor to invest their retirement money. What usually happens is that these financial advisors would sell any client stocks or mutual funds they had in their retirement account to pay the commissions and other expenses of the CFP. If a planner does not have enough experience to manage your retirement account, it is advisable that you use independent financial advisors instead.
Another retirement financial advisor mistake is misusing charts and graphs. If your retirement planning involves a tight budget, it is easy to make mistakes when evaluating the impact of changes in a particular investment. Instead of relying solely on a retirement chart, consider using other tools, such as real estate or stock price charts. Independent financial advisors may also be able to provide additional guidance by providing a more detailed analysis of several investment options.
When considering which retirement financial advisor to hire, it is helpful to have some information in hand. The most important piece of retirement advice is to educate yourself about investments and retirement planning. The more you know about the topic, the easier it will be for you to choose the best investment strategies. While there are no guarantees with any investment, having at least some knowledge will help you make the best retirement financial advisor choice.
There are also several retirement financial advisors who do not provide any type of educational training or financial education to their clients. These types of advisers tend to rely on word of mouth referrals and recommendations from past clients. While this can work out well for some, others find it is difficult to separate themselves from the pack. For those who seek education and training in financial advising, the best approach may be to become a Certified Financial Planning Advisor (CFP).
The next step will be evaluating the various retirement financial advisors that are listed in your phone book. As you begin your research, look for someone who is well-versed in all the areas of investments you need help with. Ideally, the CFP should focus on a wide range of investments including stocks, bonds, mutual funds, and real estate property. While you will most likely not have a lot of choices when selecting an individual, it will help you narrow down your choices and eliminate the less qualified retirement financial advisors.
Once you have narrowed down your list of possible candidates, ask each candidate some questions to help you get a better idea of how they would be able to help you. One of the first questions to ask is what type of training and education they received along with any additional education they are seeking. Typically, retirement financial advisors will discuss changes in client portfolio plans, retirement advice, and market timing with their clients. If an advisor refuses to discuss these topics with you, consider hiring another adviser who will discuss these important topics.
If you are unsure about the right retirement planning financial advisor for you, consider using the services of a financial expert who can provide the type of detailed advice that is necessary for your specific needs. A trained expert financial adviser can help you determine which investments will be the best for you, as well as help you understand the complicated world of investing. Using the expertise of a retirement planning expert can help you become financially secure once you retire.
