The first step in obtaining financial advice is identifying the type of financial advisory services you need. Do you want to diversify your portfolio? Or do you need tax, estate or retirement planning advice in Minneapolis, MN? Choosing a financial advisor in Minneapolis is not only about selecting the advisor; it’s about ensuring you’re getting the appropriate guidance for your specific situation.
Experience
When looking for a financial advisor, find an advisor with experience in the specific area you require. Hiring an advisor with credentials and qualifications in the area you need will indicate that they have specialized training. For example, anyone can call themselves an advisor. If the advisor has the CFP® certification, you know that the advisor has completed extensive training in various areas of financial planning that may include estate planning, tax planning, and retirement planning advice in Minneapolis, MN.
Fees
One of the most important factors to consider when choosing a financial advisor is how fees are assessed. Is the advisor getting commissions from the sale of financial products? Or does the advisor have a fee-only structure? In a fee-only model, the advisor receives a flat fee or percentage of AUM (assets under management) from the client. Fee-only financial advisors are only paid for the services they provide. They are not biased by the sale of financial products or other incentives.
Registration
To learn more about an advisor, look at where the advisor is registered. Is the advisor registered with FINRA, the regulatory agency for brokers? If so, the advisor is only held to a suitability standard. Is the advisor registered with the SEC? The SEC is the regulatory agency for Registered Investment Advisors (RIAs). RIAs are held to a fiduciary standard. Anyone can claim to be an advisor. When looking for retirement planning advice in Minneapolis, MN, consider an advisor that is independent, fee-only, and fiduciary.
