5 Ways to Choose a Reliable Financial Partner

Feb 2018 | Team Rubique

When you start earning money, you will also have to start thinking about how to manage it. But, if you truly want to manage your money and see it grow, you cannot do it alone. You will have to seek the help of an expert, as a financial advisor. This advisor will become your financial partner. So, they need to be reliable, trustworthy and efficient at the same time. You need someone who can invest your money in the right places and trust them to a certain extent. Choosing a financial partner is easy these days. You can just go online and hire one. But, what’s difficult is choosing a reliable financial partner whom you can trust.

So, to make things easier for you, here are 5 ways that can help you choose the right financial partner.

#1: Choosing The Type Of Financial Partner

Broadly speaking, there are three different types of financial advisors classified on their payment models. First up is the commission-based advisor who sells financial products to you and receives a commission based on that. They are under the employment of larger companies and payment is grossly dependant on what they sell. So, be wary because they will try to influence you as much as possible. Hence, their advice might not be the one that you are looking for.

Then, there’s the fee-based advisor. They offer you investment products and have a similar commission-based payment system. But, in addition to all of that, they also offer you advisory services. That is to say, they charge a fee to provide financial planning to you. However, the issue lies in the fact that there might be a conflict of interest because they receive commissions from your purchases.

Moving on, the best financial partners that you will find are the ones who charge fees for their services. They do not sell any products so there’s no commission involved either. They offer you personalized advice based on what you need and make money only through the fees they charge you. A lot of FinTech companies offer such services and their service is far superior to any other service provider.

#2: What Do You Need?

Before you select a financial partner to help manage your finances, ask yourself what it is that you want. It’s very important that you know both your long-term and short-term financial goals. Once you know exactly what you want, choosing the right financial advisor becomes easy. This is because every advisor is different. So, depending on what you want, you can approach the right advisor. If you have specific questions about investing in real estate or selling a business, then you should go for an advisor who bills you hourly.

On the other hand, if you want to create a long-term financial roadmap, which is a much better option, then you should approach FinTech advisors who charge a flat fee for their services. Moreover, they can also manage all your assets and give you constant advice on how to improve your portfolio.

#3: Do Your Own Research

Contrary to what others might say, remember that everyone has their own needs. What might have worked for other people might not work out for you? So, you should do your own research and figure out what suits you the most. Once you know the goals that you want to achieve, it becomes easier to pick a financial partner. All you need to do is go on the internet and look for like-minded advisors. Make a list of a few that you might like and then read what people have to say about them. Read through the reviews and testimonials left by clients so that you can make up your mind. Make a note of their specialties so that they align with your interests. Soon enough, you will see that you have zeroed in on the advisor that will suit you the most.

#4: Ask For A Sample/Trial/Demo

When in doubt, don’t panic. If a financial advisor really wants to take you up as a client, they should be able to help you in any way possible. Choosing a financial partner is quite a leap so it’s understandable that you might be confused between a few potential advisors. Since there is no simple formula or set structure for a financial plan, ask them if they can give you a sample or a demo that might help you make the right choice. It will give you an idea of how each advisor works.

Moreover, it will help you realize whom you can trust and work with. Sometimes a financial partner might have sound financial knowledge but might prove to be hard to work with. Since you are looking for a long-term partner, it’s important that you choose someone who knows their stuff and is easy to work with.

#5: Seek An Unique Experience

Every client is different. So, an advisor should cater to their unique needs. But, not all of them do. So, you should go for a planner who will create a plan unique to you and will be able to cater to your needs. Nowadays, this task is better suited for the FinTech companies who operate online. These companies provide you with personalized service and charge fewer fees than a traditional advisor. They offer valuable advice that will help you out and are definitely interested in helping your finances grow.

So, choosing the right fit depends on your needs. It’s a matter of personal choice but that personal choice should also be able to help you out with your personalized needs. Choosing a trustworthy, reliable financial advisor is an important step in life so it’s important that you make the right choice.