INVESTMENT PLANNING: HOW TO GET AFFORDABLE VALUABLE INVESTMENT ADVICE

INVESTMENT PLANNING: HOW TO GET AFFORDABLE VALUABLE INVESTMENT ADVICE

Come to think of it, the people who desperately need an investment advisor are those that can’t afford it. Advisors for ongoing investment planning aren’t just for the rich and famous, contrary to popular belief. It is so easy to justify that you don’t need an investment planner, but the real question should be, ‘Can I afford not to have an investment advisor?’

Focus on the benefits that an investment planner can bring to your dynamic situation. If you are currently gambling with employee benefits, restricted stock units, and down payment, it’s time to do things differently. Financial planners are quite inexpensive these days, with a wide array of options. Therefore, you need to have an active investment plan in action and watch yourself get closer to your goals.

Benefits of working with an investment planner include:

Getting expert advice

If you’re the kind of person who endures the hassle to monitor their finances continually, maybe you need a competent financial advisor after all. You can then concentrate on your day-to-day schedule without having to worry about fluctuating investment markets.

Professional review of investment goals

An investment expert will carefully understand your needs and draft a financial plan to help you accomplish them. With such a professional, you can be confident in taking risks in investment.

Appropriate asset allocation

During your life as an investor, you’re sure to amass many assets. However, you may be unaware of the procedure for proper asset allocation, thus likely to make inconclusive financial decisions.  An investment planner will guide you on the appropriate asset allocation to set yourself up for future success.

Rebalancing & Continuous Tracking

Rolling your investment ball in motion as per plan is just that, a  start. The real benefit of hiring a financial advisor comes from a periodic rebalancing of the portfolio, goal modifications, strategic reviews, and taking corrective measures on the investment portfolio.

Let’s explore a few ways to get quality investment advice on a tight budget:

Make the most of your investment providers

If you own an account with financial providers, the chances are that they do have free tools for their customers. Make sure you’re taking full advantage of these features. Here’s what to check:

Your credit union or bank- The amount and quality of financial advice varies widely, so be sure to prioritize this aspect when going for new accounts.

Your online brokers- Many web-based brokerages have educational tools and resources to help you learn how to manage ongoing investment plans, all for free! Some offer an entire investing curriculum, right from quizzes to videos.

Your 401(k) provider- Do you have a workplace retirement plan? According to a 2018 survey by Alight Solutions, at least two-thirds of companies with a specific contribution plan offer tools for workers to keep track of how much they’ll have in retirement.

Use online financial advice tools

While it may be true that in-person financial advisors are more ‘realistic,’ a Robo-advisor can be the right solution too. These online automated investment services use algorithms to control your investment decisions. Even though such services typically come at a cost, charges can be as low as 0.25% of your account balance. Among the few market leaders in this category include Ally Managed Investment Portfolios and SoFi Automated Investing.

Additionally, several online investment planning services provide holistic investment management and financial planning. Their fees can either a percentage of your account balance or a minimum flat rate. Besides, the cost will cover the management of your portfolio and connection to financial advisors who can help you draw a plan to attain your goals.

An online investment advisory services will likely cost more than a Robo-advisor, but considerably less than a traditional in-person advisor.

Know where to look

When you are on the lookout for an investment advisor, think about the kind you want to meet: commission-based or fee-based. Are you seeking help with investment planning, or only an expert to go to when you hit a snag with your finances?

Some advisors charge on an hourly rate basis, while others encompass financial planning in their fees for managing their investments.

In regards to where to find a competent financial planner, there a couple of places, from the unexpected to the obvious:

Ask colleagues, family, or friends for recommendations- You’re likely to find someone to work with if you are in a similar tax bracket with your friends, family or compatriots.

Search Engine- I know it sounds whack, but yes, the power of search engines can’t be undermined! Chances are a search engine is how you came across this page. So if everything else proves futile, consider a quick Google search for ‘financial advisor for middle class’ or ‘investment advisor near me.’ Thank me later.

The National Association of Personal Financial Advisors- NAFPA.org allows you to locate a financial advisor near you.

The Accredited Financial Counselor website- True middle-income earners, should check out this site for an accredited investment counselor. You can be sure to find certified individuals who’ll take up your needs both for the short-term and long-term, and at an affordable charge too!

The Garret Planning Website- Visit GarretPlanningNetwork.com and get insightful listings on all the financial advisors who tend to the middle-class earners.

Meet with a traditional in-person investment planner

Many sources of affordable financial advice are available online, but if you prefer to meet one-on-one with an investment advisor, there’s some good news.  You’re likely to stumble upon free consultation services when you visit a local financial expert.

The first consultation meeting entails your investment goals and what it’d be like to work hand-in-hand. Nevertheless, the meeting can help you weigh whether it makes sense to hire a personal financial advisor.

Here’s how to capitalize on that first appointment fully:

Come equipped with all the basic questions for you to assess whether the advisor can address your immediate or future investment goals.

Ascertain that the consultation is free of charge

Don’t feel obligated to continue working with the advisor after the initial meeting

Know what Inquiries to make

While knowing what you’re searching for in a financial planner is the ultimate step, matching an advisor to your needs is critical too. Ask a prospective investment advisor with the following questions:

Are you a fiduciary?

What investment planning services do you offer?

How often will we get in touch?

What type of clients do you handle?

How much do you charge for your services?

Once you get conclusive responses about such questions, you’ll be capable of arriving at a decision that serves the greater good of your investment plan.

Stick up for yourself

To avoid falling prey to cons and fraudsters, make sure to dig up everything you can find about the financial advisor online first. Keep in mind that not everyone is out to get you. Everything has a price, however little, and that’s no different from financial advisory services.

If you’re anxious that you don’t make financial money for a particular investment advisor to work with you, tell them upfront. Honesty is the key to avoiding exploitation. Furthermore, the more you save in looking for a financial planner, the faster you get started in realizing your investment planning ambitions.

Know how much money a financial advisor can save you

Whichever way you look at it, an investment advisor is an expense. And if you are already on a tight budget, it may seem like a waste of money. However, do the math first before anything. A financial advisor can establish your investment plans in a year. For example, you can pay an average of $1,000 a year for an advisor. If by diversifying your portfolio, careful planning, and boosting your retirement savings, they help you save $2,000 a year, then that’s a good bet.

How much do investment advisors cost?

It varies hugely, but most fee-only financial advisors will charge $800-$2000 for an exhaustive investment plan. For ongoing investment planning, you may need to fork out a couple of hundred dollars as monthly retainer fees.

If you’re on a very tight budget, visit those advisors who sit at your local bank or partners with a major brokerage firm. They offer free financial advisory services and maybe a superior option to fee-only advisors.

If you are thinking long-term, choosing the level of advice you need is essential. Some financial advisors may offer an entire suite of investment services ranging from tax planning to mortgage advice. But your assets have to be worth $1m and up.

Besides your choice of an investment planner, everything else boils down to how much confidence, time, and expertise you have to manage your finances. If you want to do something progressive or complicated, an advisor will save you a lot of time and offer you a wealth of knowledge. Get into a contractual binding that will prove worthwhile at the end of it all.