Generally before choosing an independent financial adviser it is convenient to have interviews with several of them to know them well and that they see you.
It is essential to understand your experience and your style of managing your clients’ funds, among other things. A level of trust must be built that is the basis of every relationship. It is assumed that these financial advisers are registered with official bodies and their reputation is public and known.3 key aspects when choosing financial advisorIt is necessary to know how they work although there are three questions that are really important before starting a relationship.• How are they compensated ? How they charge their fees as advisers. If they receive compensation from investment funds, other entities or brokers or exclusively from clients. Obviously this last answer is the most appropriate for the client. The investor needs someone with experience who looks only for their interests and the management of portfolios depends on their knowledge of the client’s profile without interference or conflicts of interest.
Subsequently, the advisor may be skillful or not in his decisions but it would be due to his lack of success not because of the external compensations of the companies, funds etc. that he acquires for the client. • The second question that is important is to know your relationship with other professionals who also intervene in the analysis and treatment of the client’s financial life. Specifically his ties with tax advisors, life insurance advisors, lawyers in the planning of the total picture of the economic growth of the client . A financial adviser should not advise on the laws of taxes, insurance, or inheritance planning but should coordinate their work with advisers in these fields in a collegial manner.• he third question and clarification with the Financial Advisor is to establish a fiduciary contract generally in writing where the advisor swears that he will always take care of the interests of the client before his own.
It is essential that the relationship with the independent advisor be stable and legal. This profession is regulated by the government through the SEC which has periodic reviews to verify that the clients’ wishes are faithfully followed. It is usually like that. An advisor who does not comply is removed from the industry forever, has criminal consequences and the law is firmly adjusted.There is no space for financial bars , advice on the investments of friends or acquaintances, and even the press informs about investment ideas, assuring that they are only their own opinions and that the investor should check with a financial advisor.
