You want to make sure you hire the best financial advisor possible so before you hire a financial advisor, do your homework. Read through each of the steps below, conduct a search for advisors that meet your criteria, interview several, and verify their credentials and background before you hire them. Following these steps will help you hire the best financial advisor for you and your family.
1. Understand the Difference Between Financial Planning and Investment Management
Some financial advisors offer financial planning services but not investment management; others manage investments, but provide little financial planning. To find the best financial advisor for your situation you need to understand the difference, and know which services a financial advisor provides before you hire them.
2. The Best Financial Advisors Have Credentials
All credentials are not alike. To find the best financial advisor, look for a financial advisor who has their Certifications.
3. Know How Financial Advisors Are Compensated
There are numerous ways financial advisors can charge, but in UAE, they are compensated by the provider.
4. Verify Your Financial Advisor’s Credentials
The best financial advisors have a clean compliance background and verifiable credentials. To be sure they are who they say they are always verify a potential advisor’s credentials and compliance (legal) background before you hire them.
5. Avoid Fraud – Only Use A Financial Advisor Who Uses A Third Party Custodian
This is one of the simplest steps you can take to reduce the chance of fraud. The best financial advisors will use what is called a third party custodian to hold your assets.
6. Find The Best Financial Advisor By Asking These Questions
You can find the best financial advisor by asking above questions when you interview advisors. These questions help you determine how the financial advisor communicates as well as their area of expertise and ideal client.
In short, financial planning is not a short term process, it is a process which needs to be reviewed at least once in a year. A good financial planner can make big difference in the end result of planning.