Thursday, July 2, 2009

When is it right to work with a financial advisor?

Finding the right financial advisor is one of the most important decisions you can make for both you and your money. Identifying a true professional who is honest and loyal is easier said than done. The best way to start your search is by asking 5 to 10 people you trust and respect who they use for financial advise.

Once you identify a few potential candidates you should set up a time to interview them. Ask these advisors questions like:Financial

How are you compensated?

How do you handle conflicts of interest?

What is your investment philosophy?

These 3 questions cover the major issues that set advisors apart from each other. You want to build a relationship with an advisor where you can stay for the rest of your investing career. One of the worst things you can do is jump from advisor to advisor every couple of years.

A great advisor should be compensated directly from the client to ensure that the clients interests are always put first. This type of compensation structure enables the advisor to implement investment plans that can focus on buy and hold strategy for the long term.

Many “fee only” advisors require minimum account balances but many also offer consulting on an hourly basis. This is a way to get the professional advise you need while building your account to the level required for complete management.

Gallup Federal Credit Union now offers financial planning and investment advisory services. Please feel free to contact me to learn more about the services we have to offer!

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