Enquire Now


Get the brochure

apply now

Get 6 Month Syllabus

How To Find The Right Wealth Advisor For Your Business? What To Look Out For?
02nd Mar 2022

How To Find The Right Wealth Advisor For Your Business? What To Look Out For?

Taking care of your finances is essential. You must not only sustain your monthly spending, but you must also prepare for your retirement, taxation expenses, and insurance needs. It is thus important to decide the way you invest your money in order to achieve financial independence.

Today's market has several financial instruments such as sovereign bonds, derivatives, commodities, equity, currency, etc. However, many of us lack the necessary information or don't have time to research them. That is why it is critical to have a wealth management consultant who can help you sort out your finances to meet your short-term and long-term objectives.

But you cannot rely on any person randomly, and you need to check if they are apt for the job. You must consider the following points while choosing a wealth advisor.

1. Check the credential of the advisor

The value of all the credentials is not the same. Some firms provide easy-to-get certifications for a specific amount of money so that even a salesperson can earn it and look like an expert.

Before choosing a wealth advisor consultant, you must meet the person and check the certification. He/She should have a PFS (Personal Financial Specialist) or CFP (Certified Financial Planner) qualification or should be an investment advisor who has the CFA (Chartered Financial Analyst) certificate.

Advisors obtain certificates after passing the exam, which shows their proficiency in the field. Certifications ensure that the consultant can handle your money properly. So, checking the certificates is a must.

2. Understand the type of advisor you need

To choose the best financial advisor, you must first determine what kind of financial guidance you require and what services a possible advisor offers. Different advisors have efficiency in various types of financial needs. The various services are:

a) Investment Advice
Wealth advisors research various investment possibilities and ensure that your investment portfolio remains within your intended level of risk.

b) Managing the Debt
If you have liabilities such as consumer debt, student loan debt, vehicle loan, or mortgages, financial counselors will work with you to devise a repayment strategy for you.

c) Tax Planning
Tax planning includes devising strategies to reduce the taxes you owe by contributing to a charitable organization or tax-loss harvesting.

d) Retirement Planning
A wealth management consultant can assist you in accumulating cash for your retirement. Even after retirement, they help you in keeping your savings safe.

3. Compensation Method of the advisor

To choose the finest wealth advisor, you must understand the compensation method of your advisor. Advisors' technique can be an asset-based charge, a monthly payment, or a fixed percentage of the managed fund. The various methodologies of compensation are as follows:

a) Commission-only Consultants
On paper, these consultants may appear to be free of charge, but they may be paid a percentage of your investment. In fact, these counselors are usually found through investing or insurance brokerage firms.

b) Fee-only and fee-based Consultants
Fee-only financial advisors earn their profits as a fixed percentage of assets under management, while fee-based financial advisors make money by charging a fixed customer fee on an hourly or monthly basis or based on performance along with a fixed rate of assets under management.

The Key Takeaway

Selecting the best out of the many wealth advisory firms is an important decision you make in your life. You should not decide in the spur of the moment; instead, get suggestions from individuals you trust and conduct your in-depth investigation.

That being said, if you locate the correct wealth advisor for you, they can assist you in achieving your financial objectives and financially protecting your future. You can even take a wealth management course as it will also help you manage your finances on your own. Moreover, it will also help you analyze the performance of your advisor.

OAWA offers several wealth management courses in India, and even beginners can take them up. The wealth advisory courses are well-structured, and they will help you understand the sector.

Share :