4 financial advisor firms and tips for choosing the right one

4 financial advisor firms and tips for choosing the right one

Christopher Davis

If you’re going through major life changes like having a baby, retiring, getting a divorce, or dealing with debt, it could be helpful to hire a financial advisor to manage your finances effectively. There are approximately eight categories of financial advisors who can offer guidance on a range of investment options. However, the responsibility of selecting the most suitable advisor for your needs ultimately falls on you as the investor.

Tips for choosing the right financial advisor firm
Here are a few tips to consider when choosing a financial advisor firm.

Know your needs and financial goals
If you need help with specific investment areas such as tax savings, pension funds, wealth management, and future goals, it’s recommended to seek advice from specialized advisors. They can assist you with these areas instead of managing your savings or investment goals.

Ask for references
Ask your friends, family, or colleagues with investment experience and similar financial goals. The advisors they recommend could be more reliable, offer better services and be more hands-on than hiring a new or unknown firm.

Make a list and compare services, products, and fees
Make a list of firms that work in the area that you want. Please go through the company’s website to understand its services and products. Look for companies willing to educate and guide you as part of their service.

Choose a licensed fee-only fiduciary
Licensed and registered fee-only fiduciary advisors do not receive commissions from companies whose products they sell but always put your interests first and recommend what is best for you.

Look for transparency and clarity
The firm should be able to explain their investments, the break up of fees, and commissions they earn, and should not use your trading account or your assets without proper authorization. If you notice such transactions, you must change your advisor immediately.

Verify their credentials, track record, and financial standing
There are many websites like Better Business Bureau, BrokerCheck, and SEC where you can check if the firm has necessary licenses, financial standing, consumer complaints, or unresolved lawsuits. A firm with a good quantum of Assets under Management (AUM) is an assurance that your assets are safe.

Top four financial advisor firms
Vanguard Personal Advisor Service
Vanguard offers customized guidance and goal-based planning and charges a low advisor fee of about 0.30%. You can benefit from unlimited access to financial advisors and choose from a range of Vanguard’s products. They have a global AUM of 7.7 trillion dollars.

BlackRock
Black Rock is one of the world’s largest investment firms, with an AUM of $8.6 trillion. They have one of the largest teams of financial advisors for individuals, businesses, and governments.

CAPTRUST
CAPTRUST employs highly experienced financial advisors for varied specialized areas and offers solutions based on the investor’s goals, net worth, and tolerance to risk. They deal in a wide range of investment products that allow you to widen your portfolio. They have an AUM of $112 billion.

Facet Wealth
At Facet Wealth, you can receive reliable and impartial financial advice from a designated fiduciary, starting at an annual cost of $2,000. You can benefit from a free initial consultation and comprehensive financial guidance and planning. However, their services are only available online, through video conferencing, or over the phone. With over $1 billion in assets under management, you can trust that your finances are in good hands with Facet Wealth.

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