Financial Advisors provide customized financial solutions and execute orders in the stock market and financial products, i.e., stocks, mutual funds, annuities, among others. Likewise, they manage economic activities on behalf of their clients in exchange for remuneration or commission. Here you will find some of the features you should look for when choosing a financial advisor.
The financial advisor must be independent. Without a doubt, the most crucial point. It’s not a matter of him ‘endorsing’ you for a product for Which he will charge a commission since he then loses his independence, but rather that he looks out for your interests. This means, although it may seem contradictory, that he should charge you for the advice he gives you or for what you earn. Going again to the parallelism with other professions, if a doctor or a pharmacist were given a commission for recommending or selling a particular drug, which one would he offer?
The advisor must be appropriately qualified, but let’s not forget that. Such training can make your money work better and be less risky by avoiding bad decisions.
The specialist in this field must know ‘to the letter’ your profile: personal situation, investment capacity, risk, return expectations, etc.
A financial advisor must explain the possible returns but also make clear the dangers of a product or operation, including, for example, the risks you should know before investing in fixed income.
The financial advisor must ‘speak your language,’ avoiding technicalities as far as possible, being able to misdescribe his financial recommendations, but the understandable language for you, as a client, without using convoluted or vague terms to highlight or obviate specific issues.
When you talk to your advisor – whether in person, on the phone, or by any other means – it is not to give you a lecture or to display his knowledge. If he or she has uncontrolled speech and doesn’t listen to you, as noted above, you may want to get another expert.
No rush or pressure. A responsible financial advisor does not pressure his client to hire a product he is not entirely convinced of. In that sense, you may be interested in several tips and keys to successful short-term investments.
If the advice given by the expert does not fit you, analyze each maneuver carefully since the expert must avoid at all costs recommending products or operations that do not meet your expectations and needs.
A responsible and ethical advisor will provide you with written information on the financial product. That way, you can analyze it calmly: possible commissions or penalties, interest rates, risks, etc.
Of course, he must be able to solve all the questions without leaving you with any doubt about any investment bet.
The professional must be required to accompany you throughout the life of the investment.
Likewise, the specialist must be capable of adapting to your investment idea’s different moments, of having sufficient flexibility to take you by the hand in your financial programming.
The advisor should not insist on ‘placing’ certain products. If you are not convinced, he or she must have sufficient knowledge and flexibility to propose different options by your profile, always clarifying each of them’s advantages and disadvantages.
Constant updating. The financial advisor must be up to date with all market movements and take them into account when considering the best investment alternatives.
As in most aspects of life, we recommend that you compare. Try presenting your case to several financial advisors to see what possibilities and solutions they offer you. This way, you will be able to decide which one best suits your needs and demands.
