Whether you are looking to save enough money for 20 to 30 years past retirement age, or wanting to make potentially lucrative investments to grow your nest egg, a financial advisor can help you. There are dozens in Colorado and several certified financial planners (CFPs) in the Colorado Springs area.
Financial planners can also review your finances to find where you may be spending too much money that could be reinvested into your retirement. Before you hire a CFP, make sure you have researched their background and understand their fee structure.
Since financial advisors can help you with more than just diversifying your portfolio, consider using their services as early as possible. An advisor will assess your level of risk, consider your age, and take into account the age that you wish to retire before making recommendations to increase your net worth and grow your retirement accounts.
Financial advisors should also be notified anytime you are faced with a major life event, such as marriage or divorce, in case this occurrence changes your financial goals. If it does, the CFP can make adjustments and help you get back on track.
You can find certified professionals in the Colorado Springs by searching the databases on the following websites:
The National Association of Personal Financial Advisors (NAPFA) hosts a database of advisors that only charge fees.
The CFP Board of Standards keeps records in their database for certified professionals across the nation. You can search for CFPs by location or name.
After you have made a list of potential financial advisors research their credentials, certification status, and bankruptcy history on the CFP Board’s website. The site will also list any necessary disciplinary actions the Board has taken against the CFP in the past.
Once you have narrowed your list, plan to meet for a one-on-one meeting and discuss the advisor’s pay structure. Most CFPs are paid one of three ways: fee-only, commission-based, or a combination of fees and commissions.
CFPs charging only fees typically charge a percentage of your holdings based on the investment portfolio’s performance. This fee may occur annually.
CFPs earning a commission on the investment products you purchase run more of a risk of conflict of interest. Before hiring one on this pay structure, confirm that they are also a fiduciary. This will ensure that they place your best interest above their own.
CFPs charging a fee AND earning a commission do so to offer clients several services and may work as a “one stop shop” for their best investors. Choose a financial advisor that meets the qualifications you are looking for and can provide the necessary products to meet your financial goals.
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