Planning for your family’s financial future is up there with one of the most important decisions you can ever make. While we would all love to actively manage our own portfolios, the fact of the matter is not everyone has time to do this on a consistent enough basis. Enter the wealth manager and financial planner, two people that can help set you up in the right direction, and even guide you down the path of financial wellness to ensure your family is financially stable for years, if not generations to come. So what are the things you need to look out for when choosing a firm or advisor to help you attain your financial goals? We have compiled a list to help you get started in your search.
Find one that has no minimum account balance: You will quickly come to realize that a good majority of wealth managers and financial planners will only help those with a minimum account balance. Not all of us have millions of pounds in the bank ready to be deployed, so make sure you find someone that is willing to take on your level of wealth. Finding one with no minimum account balance will most likely mean they are also more familiar with advising clients in the same financial situation as you!
Fees and Costs: My goodness, please ask and confirm what the fees of managing your portfolio will be. You do not want to just pay someone to put your money into an ETF and charge you 3-5% on that! That is absolutely a case where you might as well be managing things on your own, so be wary about their strategies as well as how much it will cost you! Cost isn’t everything, but ensuring you are receiving the proper value from the fees you are paying is step one of being financially sound.
Find a proven track record: Most wealth managers will provide the recent success they have had managing portfolios for other clients. You are going to want to make sure that your personal investing horizon aligns with their style and risk level, otherwise you may just find yourself disappointed with the results.
How do they invest?: Does the firm take an index fund approach or do they deal in individual securities? While it may not seem that different to you, it does speak to how risk-averse their investing strategies are. Individual securities can compound to give you life-changing gains, while funds can provide steady, long-term growth, with less risk of going into the red.
Setting your family’s financial future on the right path can alleviate future burdens and provide a better life for your future generations. If you have decided on finding someone like a wealth manager or financial planner to help you with this, then asking these questions is an excellent place to start!
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