Our finances lay the foundation for a comfortable lifestyle, especially as we reach our older years and retirement is getting closer and closer. Unfortunately, not all of us understand the best way to manage our finances or save for future events. Most of us need the help of a financial advisor, but believe they are reserved only for the wealthy.
A good financial advisor can help you find investments to grow your money and help you evaluate things like insurance coverage, estate planning, and budgeting – making your life much easier as you get closer to retirement.
The time to contact a financial advisor will depend on you and your situation, including how much money you are attempting to manage. For some individuals, a financial advisor may be necessary much younger than others. But you will want to contact a financial advisor sooner rather than later so you can get your budgets, plans, and insurance in place as soon as possible.
It is only necessary to meet with your financial advisor about once a year, but major life changes including marriage, divorce, moving, or having children could be cause for an extra meeting.
Since the financial advisor will be managing your money and will help you seek financial stability, you will want to talk with a few different prospects before finding someone that you can trust. The financial advisors that you talk with should all be Certified Financial Planners, or CFPs.
You will also want to consider how the financial planner is paid before making your selection. There are a few ways that a financial planner may be paid that may influence your choice:
Fee-Based: A fee-based model means your financial advisor will get a low percentage of your investments. Because their pay is linked to how well your investments will do, they will have more incentive to select investments that will perform well.
Commissions: A commission-based payment system will come from the financial companies looking to sell plans to individuals like you, such as insurance. While these plans can work out, the financial planner may push a product towards you to make money even if it doesn’t necessarily fit your best interest.
Fee and Commission: This type of payment process blends both the fee-based model and the commission-based model. These are common when financial planners work with both insurance policies and investment management.
When selecting your financial planner, be sure to find one that fits with your needs and desires. Each individual will have a unique experience and you want someone who cares about your interests.
You need to be cautious of scams when selecting our financial advisor, so do your research when making a selection. To find a great financial advisor, here are a few places you can search in Knoxville, Tennessee:
Better Business Bureau: Find the financial advisor you’re looking for on the BBB website. The companies that they list comply with their standards and regulations.
Credio: Credio is another option that lists financial advisors in the Knoxville area. In the easy to view list option, you can clearly see how long the individual has been in business and what fees they have.
CFP: The final place to look is on the CFP website. Using your zip code, you can find Certified Financial Planners right in your city.
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