Do you have a relationship with a financial professional? Are you thinking about making a change? There are so many financial professionals, offering a range of different styles and services, that it can be hard to know which one is right for you.
It’s important that you work with the right professional for your needs and goals. However, you also want to do your due diligence before you make a change. It’s possible that your current professional could be the right one for your goals.
Below are a few questions to ask about the relationship with your financial professional. If you don’t know the answers to these questions, you may want to have a conversation with your financial professional to get clarification. If the answers aren’t to your liking, it may be time to make a change.
How are they compensated?
Clearly, your financial professional is compensated for their services. However, there are a variety of ways in which that compensation may occur. Some earn commissions for selling products and investments. Others charge a flat fee, either based on specific services or as a percentage of assets. Some earn a blend of different methods.
There’s no right or wrong way to compensate a professional, but it’s important that you know how the compensation takes place. If you haven’t had that discussion, now may be the time to do so. If your professional can’t clearly explain and demonstrate how you are compensating them, it may be time to explore other options.
How often do you hear from them?
Is your financial professional proactive or reactive? That is, do they contact you with new ideas or to touch base? Or do they only contact you in response to your concerns or questions?
Your relationship with your financial professional should be a collaborative partnership. Their success is tied to yours, so it’s important that they proactively look for ways to improve or strengthen your strategy. If they don’t reach out to you with new ideas or recommendations, or if you have to contact them first to have a conversation, it may be time to consider alternatives.
Do they provide comprehensive advice?
Many people associate financial professionals with investment advice. The truth, though, is that your financial picture includes much more than just your investments. You have to make big decisions on a wide range of issues. How much should you contribute toward retirement? Can you afford that major purchase? Are you on track to pay for your child’s college? What happens if you die or become disabled?
Your financial professional should be able to provide recommendations and advice in all of these areas, even if it doesn’t lead to the sale of a specific product or investment. Again, if you’re not getting advice or input in all areas of your financial life, you may want to reassess your relationship with your financial professional.
Want to learn how a financial professional can help you reach your biggest goals? Let’s talk about it. Contact us today at Benefit Resource Partners. We can help you analyze your needs and goals and develop a strategy. Let’s connect soon and start the conversation.
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
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