Rochester is one of the largest metropolitan areas in America and home to around 1.1 million people. As the city enjoys being in close proximity to global business centers, Rochester is headquarters to big companies like Xerox and Eastman Kodak. Having a bright financial and economic outlook, there is no shortage of financial advisory firms in Rochester, New York.
With a wide spectrum of choices, it can be a bit of a challenge to find the right financial advisor for you.
Here are some questions you might want to ask before hiring a financial advisor:
- What is the financial advisor’s reputation?
In the financial industry, the status and character of financial advisors follow them wherever they go. To make a confident choice, do some research on the reputation of the financial advisor and ask your friends or acquaintances about their own experiences. By asking question based on reputation, you can quickly narrow down your choices.
If you are still having trouble finding a reliable financial advisor, click here for a full list of reputable and credible financial advisors who can help you invest your money.
- How is the financial advisor’s money invested?
When visiting a nutritionist for a consultation, you would want some assurance that they walk the talk and avoid unhealthy foods like fries or pizza. Similarly, when you meet with a financial advisor, you want to make sure they also practice what they preach. This is where the question of how their money is invested comes in.
You want to know they invest their own money wisely, so that you rest assured that your money is in good hands. If a financial advisor is not willing to reveal to you how their own finances are invested, you might want to look elsewhere. If they are doing an excellent job at investing their own money, they should not be afraid to disclose it.
- What type of financial planning do they specialize in?
In the financial industry, there are certain financial advisers for specific types of investing. It is critical to know which type of financial advisor can bring you the most value and help to you make wise investment choices, based on your specific needs. For example, if you have a high tolerance for risk and prefer trades across currencies, you may want to hire a financial advisor who specializes in foreign exchange investments.
If you want to know how to best settle your taxes and legal issues, then you need a financial advisor who specializes in law and tax. On the other hand, if you want financial advice on your bank and accounting statements, you need a financial advisor who specializes in bookkeeping instead of trading.
- How is the financial advisor paid?
The next question to ask is how your financial advisor gets paid, so you can also get an idea of how much you will be spending, now and in the future. There are several ways financial advisors get paid for services rendered. Payment may be in the form of commissions from selling a particular kind of fund, insurance commissions, flat rates, percentage fee of assets under management, or hourly fees.
By understanding how your financial advisor gets paid, you can also spot the hidden motives of your financial advisor and avoid them. For example, if your advisor makes money from commissions, the financial advisor might steer you towards products that benefit them the most, rather than looking out for you. On the other hand, with a fee-based advisor, there is no conflict of interest when the advisor manages your portfolio.
- How does the financial advisor communicate with clients?
When you hire a financial advisor, you want to work with them as conveniently as possible. An important question to ask is how they communicate with clients. While you might prefer getting updates regarding your account by phone, others prefer paper documents or emails. So, ask your financial advisor how they communicate with clients, and let them know your preferences..
- Do the financial advisor’s vision and core values resonate with your own and those of your family?
Every financial advisor has a different investment philosophy based on certain guiding principles that help them make sound financial decisions. For instance, an advisor might have a philosophy of focusing on long-term investments with a diversified global portfolio and low-cost funds.
Your advisor should explain which investments they choose and why, based will on the client's risk tolerance or tax situation. It is essential that your advisor's philosophy, values and goals align with yours, so that they make decisions based your needs and preferences.
Selecting the right financial advisor may be one of the toughest decisions you have to make. It is very important to choose one you trust, and who understands what you need. By following the above guidelines, you should be able to find the most qualified financial advisor in Rochester who is right for you.