Hiring a financial advisor is an important decision that must be made if someone has an accumulated amount of wealth. However, not all advisors are created equal, so there are a few things that must be understood and considered before one is hired. Here are a few matter-of-fact tips on hiring a Financial Advisor in Yuba City CA.
Deciding The Importance Of Having an Advisor
Some people who have wealth may feel comfortable monitoring their own wealth and choosing what to invest their money in. However, if money is not an issue and there is enough to justify the added expense, it may very well be one of the wisest decisions that one can make. According to industry statistics, 401(k) investors who utilized the services of a financial advisor had nearly a 5% better return on investment than those who did not take advantage. Over time, that is quite a difference.
Choose What Type Is Right
There are several types of advisors an investor can use. The investor needs to sit down and decide which is best for their particular situation. Some of the more common ones include:
- A Certified Financial Planner is a Financial Advisor in Yuba City CA who has passed many exams and acquired a significant amount of experience to garner this title. They will possess extensive knowledge in the areas of taxes, employee benefits, financial planning, and retirement. This is the type of financial adviser that most people with a middle-class income will use.
- A Registered Investment Advisor works with clients who have a high income, generally at least $1 million per year. They will analyze the goals of the investor in the long-term and help them to achieve their goals.
While getting recommendations from friends and family is fine in some instances, such as hiring a mechanic or a house painter, in this case, a professional recommendation should be sought. Usually, a Certified Public Accountant or even an attorney would be a good choice to ask who they feel is the best in the area.
Contact us for any answers being sought about how the firm can best plan for your financial future. It’s your money, so take control of it.
Be the first to like.