With the Market Hitting Record Highs, Many are Seeking the Right Financial Advisor
In this day and age of economic uncertainty, finding a financial advisor can be the key to finding financial success in a number of ways. Most people assume that you only need a financial advisor if you’re planning to retire or you want to get your estate in order as you age. However, if you’re getting married, own a business, or you’rethinking of making a significant purchase, buying a house, for example, then a financial advisor can be the key to doing any number of those things successfully. The trick? Well, first you have to find an advisor.
There’s No Better Time to Invest
Now, you might be asking yourself whether or not this is really the time to invest. Unless you’ve been living in a cave for the last few months, you know that the economic situation in the States has really perked up recently. U.S. stocks are sitting at record high levels, with the DJIA sitting at over 16,400 points and the S&P 500 hovering over 1800.
Getting in now while the market is vibrant can be a game changer for finding financial success in your marriage, in a future purchase, or in your retirement. Then again, finding a financial advisor who can get you what you’re looking for is often easier said than done. The most important factor in choosing an advisor, as Forbes recently found, is trust. According to a recent study, the most important factor when looking for an advisor to 35% of participants is whether or not they can trust their advisor to act in their best interest.
“The issue of trust is key. You have to find an advisor that you trust,” explains Craig Slayen, Principal at Winship Wealth. “Historically speaking, we hit a bear every five years on average. Sometime within the next five years, we’re going to see a down market over the short-term. If someone doesn’t trust their advisor now, how will they be able to trust them when the market inevitably goes down? When the market goes down is when you need to trust your advisor the most!”
How Do You Know if an Advisor is Trustworthy?
The problem, of course, is that trust is an intangible concept, something you can’t see for yourself well enough to measure. Having said that, there are a few things investors can be on the lookout for to ensure their financial advisor isn’t the next Bernie Madoff.
- Consider Their Pitch
A huge factor in finding someone you can trust is their approach. When they’re explaining what they can do for your finances, are they interested in making a commission, or are they legitimately concerned with what will improve your situation? Further, are they rushing you to make a decision, or do they want to make sure you understand the decisions you’re making? An advisor who is patient with you and shows an interest in something beyond his own bank account is someone you can trust.
Trust in the case of any professional has two meanings: first, you need to be able to trust an advisor ethically, but you also need to be able to trust in their abilities. Looking for certifications, whether as a Certified Fund Specialist, Certified Financial Planner, or Chartered Investment Councilor, is a surefire way to find someone who actually knows what they’re doing.
Finding someone you can trust is the name of the game when it comes to financial success. You need to strike while the metal is hot, and by knowing what to look for in a trustworthy financial advisor, you can do exactly that.