financialtreat – will explain about financial Security: How to Choose a Good Financial Advisor! which you will find in the following article. let’s look at this article carefully!
Along with the times, public awareness of the importance of financial planning is getting higher, and many have even hired financial advisors. Moreover, since the pandemic, more and more people have realized that the way they manage their finances is not right, especially in terms of financial security.
But sometimes, due to the lack of expertise and also experience in managing and planning finances, sometimes it becomes an obstacle that can cause new problems. Therefore, people really need a financial advisor who is able to help, guide and teach them to be able to manage their finances well.
Don’t Make the Wrong Choice! This is How to Choose a Good and Correct Financial Advisor
Until later you can have the ability to do financial planning independently and not entirely dependent on the financial advisor. Financial advisors have a very important role, especially so that clients can take the right steps in making decisions about their finances.
The services of a financial advisor are also very useful for those who want to enter the world of investment, be it stocks, mutual funds, bonds, or other types of investment products. A financial advisor can also assist his clients in finding the right type of insurance.
Given how much a client expects a financial advisor to, of course the public or client needs to be very careful in choosing a financial advisor that he will use his services.
You certainly need to find a financial advisor who is qualified, responsible, and who must definitely be trustworthy. Then how to choose a financial advisor? Follow these tips. Some of the best ways you can do this are:
1. Ask How He Positions the Client
The first thing is to know how serious the financial planner is in carrying out his duties. You can start by asking about how he positions each client who uses his services, i.e. whether or not he puts them above his own interests?
A person who has dedicated himself as a financial planner will basically put your interests as his client above his own. This will be apparent when he gives advice, as well as how he explains to you about financial problems that could have occurred.
Financial advisors who attach importance to the needs of the client will also be very careful when recommending financial products for their clients, and actually recommend products that suit the needs of the client, not because they profit from the use of these products. For this one thing you have to be very careful, so that you don’t get harmed!
2. See the Licenses You Have
A financial planner needs to have a license or certification to show that he is a competent person or has expertise in this field. In Indonesia, there is only one financial planner professional certification management body recognized by the government, namely the Financial Planning Standards Boar or FPSB.
FPSB itself has two main certifications, namely Certified Financial Planner (CFP) and Registered Financial Planner (RCP). To get this license, a prospective financial planner needs to attend education in accordance with established standards.
3. Ask the Types of Financial Planning Services He Offers (financial Security)
Like specialist doctors who have different specialties, each financial planner or financial advisor also usually has different special skills. For example, experts in investment affairs, experts in insurance matters, or experts in planning family finances.
This can be something you need to ask first before deciding to use the services of a financial advisor. You can ask about the area of expertise he has, the licenses he already has, as well as his credentials or other things related to the services he offers.
Indeed, there are also some financial advisors who have expertise in all financial sectors. But of course a person who really focuses on studying one area will be superior in his field to someone who simultaneously studies many fields.
In addition to asking for specific skills or specialties of a financial advisor, in advance you also need to know in advance the type of services you need. So if you need a financial advisor to solve your business financial problems, then you can find a financial advisor who is competent in that field.
Or if you need a financial planner to manage an investment portfolio then you can look for a reliable one in that field. That way, you will of course find it easier to determine the right financial advisor.
4. Find Out the Types of Clients That Are Usually Handled by the Financial Planner
This one point is actually still very related to before. Usually a person who has a certain specialization will serve more clients who are indeed experiencing problems in the field he is good at.
For example, a planner or financial advisor who is deep into the world of insurance will certainly meet more clients who are having problems with their insurance.
Or financial planners who are engaged in the field of education cost planners will usually meet more clients who have the status of parents or young families. In addition, there are usually financial planners who prefer to serve clients who have assets in a certain amount or value.
So usually they will require you to have a certain amount of wealth before they offer their services to you. Actually, there is nothing wrong in this matter, because everyone has different standards.
It’s just that this makes you have to better recognize your ability to meet these standards. if you feel that you are not suitable for a financial planner because of the standards he has, then you should find another financial planner.
5. Know the Flying Hours (financial Security)
If you really want to get a truly reliable financial planner, you can also select by looking at the financial planner’s flying hours. The quality of a financial planner, of course, is not only seen because he has a degree as a CFP and so on, but more is the work experience aka flying hours he has.
Like a pilot, if he has had long flying hours, of course he will know better how to solve problems that occur while in the air. The same is the case with a financial planner!
The more he meets with clients who have many problems and then successfully helps those clients, the more likely he will be able to help solve the problems you face because he has had more experience.
Usually experienced financial planners have conducted many experiments in overcoming various types of financial situations or problems. That way they will be easier in finding the right solution to your problem.
6. Don’t Hesitate to Ask the Price You Have to Pay
Surely you have to pay a certain amount of money if you use the services of a financial planner, right? Therefore, before deciding to use someone’s services, you should first ask about the price he sets for his services as a financial planner.
In addition to the amount of price you need to pay, you also need to ask how you pay him. Usually, some financial planners will charge a fee for consulting services, but there are also those who commission the sale of a product or a combination of the two.
There are also financial planners who apply hourly rates, and there are also those who charge a flat fee. By knowing this, you will be even easier in choosing the right financial planner.
The reason is, in addition to choosing based on the abilities possessed by the financial planner, you also need to make sure you are able to pay the price he has set. if it turns out that you can’t afford it, you can immediately decide to contact another financial planner.
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7. Ask Why You Should Use the Services They Offer (financial Security)
Every financial planner certainly has a uniqueness between one another. Therefore, it is also necessary for you to ask about what is the reason so you should choose the financial planner as your financial advisor.
Usually, when you ask this, the financial planner will be happy to explain the type of services he provides, the advantages of the methods he uses, to testimonials from clients that he has successfully handled during his time as a financial planner.
Those are some tips on how to find a good and correct financial advisor. It is hoped that with this information, those of you who are looking to hire a financial advisor, so you don’t make the wrong choice. So that your finances recover. Good luck.