Personal Financial Advisor?
At what point should someone consider engaging the services of a personal financial advisor? Besides ensuring they have a FINRA license, are there other certifications I should care about?
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Answers ( 1 )
Great question. I think that your need for financial advice increases as your assets increase -- but once you reach the point where you're able to set aside a regular contribution, you're ready to take on some serious advice. Early in life, it's mostly about being on the right path -- and that's mostly about setting the right habits. The best time to do that is when you're young!
That advice will be simple when you're young: live beneath your means, invest the difference automatically, and do so in a way that grows your wealth (as opposed to that of your financial advisor), legally avoids taxes where you can, and balances growth versus risk. To that end, you'll want to make sure your advisor is a "fiduciary". That's a financial term that means that she has YOUR best interests in mind at all times -- not hers, and not her company's. Look for an hourly fee, rather than a contract that involves a percentage of your investments as a fee.
Honestly, for a 22-year-old who's just out of college (not saying that's your situation, although your photo looks like a young whipper-snapper), just talking to friends and family who are in the know is a good start. Talk to your employer's HR office about their investment options -- it's boring, but it's a great place to start. And ask questions here on Sage.
If you'd like a more in-depth answer about your personal situation, consider asking a Private Question.