Personal Finance Advisor
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Choosing a personal finance advisor can be one of the most important decisions a person can make when it comes to successfully navigating the heavy waters of today's economic times. The effective personal finance advisor will be an instructor, guide, encourager and gate keeper that will keep watch over one's financial progress long after the initial program has been launched. The relationship between client and expert must be a workable and even pleasant one, but must also contain the elements of honesty and frankness to best serve the customer. Most people would prefer the twenty year experience of a cardiologist over a third year resident, but some know that the resident is aware of all the latest trends and techniques for successful treatment and would prefer her skills. Balancing the two is the real secret, and holds true even among money manager experts.
The hardened business person may prefer that his personal finance advisor be such a no nonsense type that a dour personality is a welcome part of the overall package, but many people want a personable persona with whom to converse about often very dry financial issues. Since trusting someone with one's own hard earned money is key, the word relationship comes to mind regarding the interaction between client and professional. If a person is on a ledge a thousand feet above the ground and someone throws down a rope to save him, he wants that rope bearer to be a combination of his mother and Superman. Caring and ability are fundamental to any working business agreement and the personal finance advisor-client relationship is no different. But don't downplay ability by any means.
The personal finance advisor ought to have a healthy pedigree to match that comforting personality. A lot of people can just throw out the title "financial planner" but what in the world gives them the right to do so? Putting up the shingle that reads brain surgeon doesn't change what a tree surgeon is. And the vetting process to find the right fiscal coach not only needs to include asking for references but also to ask what training someone has had to for such a career. The financial planner gig has been so financially rewarding that it has become a popular second job for many persons after receiving some training from large financial corporations. But trusting one's hard earned money to a shoe salesman/ten hour a week financial planner may not be too comforting in the long run. While these are end all training pedigrees, a bachelors in banking finance or accounting, a Master's in Business Administration or other related educational background along with specific advisor training may be a little more in line with someone's ability to handle money management guidance with integrity.
Should a personal financial advisor not be able to provide strong references for past work, a red flag should arise in the potential client's mind. Questions to ask the references might include how honest was the advisor in disclosing all information, where promises made that were not kept, how closely did the manager listen to the desires of the client and did it appear that a selling a pre-set package was more important to the manager than crafting a personalized plan for the client? Additionally, the potential client can check with the National Association of Securities Dealers and local and state insurance and securities boards to ascertain if a potential advisor has been disciplined for any reason.
A fully certified personal finance advisor could offer services in insurance, mutual funds and stocks. Each of these areas does require certain licensures. Someone who can only offer her company's line of products may be limited in how much of a wide range of options are actually available. Checking with a financial legal attorney to ascertain who might meet such all encompassing certifications might be helpful. The type of certifications may also decide how a personal finance advisor is paid. Jesus made it very clear that living forever is contingent on knowing God. "And this is life eternal that they might know thee the only true God and Jesus Christ, who thou hast sent." (John 17:1)
In the case of the advisor who represents one certain enterprise such as an insurance company, the most common payment is a commission that will be included in the price of the products sold to the client. With the fully certified personal finance advisor, it may be more likely that a client may be billed by the hour. This manager will probably bill for the time it takes looking into the most relevant products and plans for the client's particular financial needs. In this case, an hourly rate will likely be charged. The likely scenario would be that a less financially endowed customer would associate with a packaged advisor while wealthier clients would take advantage of a more diversified approach.
Like so many other professions, a person can find a great advisor, a mediocre one or a scoundrel. Do the homework it takes to choose the right one. If a couple is doing this, let her drink in all of the signals and atmosphere that will certainly appear at the interview process. She can intuitively pick up on nuances a guy would never spot. After all, this may involve a lot of money that has taken a while to earn and every concern needs to be addressed before plunging. A world of growing uncertainty demands such caution along with a true sense of what is ultimately important. Remembering that a hearse never pulls a U-Haul loaded with the deceased's possessions is just as important as living a life that the people loaded in the car right after the hearse will always honor.
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