A Financial Advisor is a person who, whether working independently or as part of a company, provides help on various issues related to finance and personal finances. Among other topics, they usually work on issues such as investment selection, retirement planning or inheritance planning. At first glance, it could be thought that working with financial advisers Dwayne Rettinger is a necessity for people who do not have the knowledge or the time necessary to personally take charge of these issues.
However, this is not necessarily the case. On the contrary, many of the great personalities of the world of the economy and the financial markets hire the Online Financial Advisory Services.
Why Need of Financial Consultant
It happens that successful financial planning is not just a matter of technical knowledge or access to information. Maintaining an objective mentality and carrying out a disciplined process are absolutely central factors. And from this point of view, having a person in charge of looking after our interests and helping us avoid the most costly errors can be an important advantage.
- When analyzing the services of a financial consultant of this type, there is a wide range of issues to be taken into account: clearly, suitability and honesty are key aspects, and there are international certifications such as CFA, Chartered Financial Analyst, which may result in value from this point of view.
- To obtain the designation of CFA, a financial advisor must approve three different levels of examinations on investment, economics and ethics issues, among others. In addition, it is necessary to have practical experience of more than four years in the industry and commit to comply with the code of ethics of the association.
- It is also advisable to be clear about the compensation system under which a financial advisor works. Some charge their fees directly from the client, while others obtain a percentage of the commissions on purchase-sale transactions in different types of instruments.
- Neither of these systems is necessarily superior to the other. However, when working with commissions on transactions, it is important to be careful with the possibility that this leads to an activity level that is too high. If the financial advisor receives income each time we buy and sell, he may be encouraged to make a greater number of transactions than is convenient from the investor’s point of view.
- As for direct compensation systems, in some cases, a percentage is charged on the assets and/or on the returns. There are also advisors who charge a fixed monthly or annual amount of money, without it being related to the asset base or the returns of a specific year. It is important to select a compensation system that is in accordance with the objectives and needs of each client.
- A very interesting question to ask a financial advisor is in what he invests his own money. The client should not necessarily replicate this strategy since the objectives and the risk tolerance of the advisor and his client do not have to coincide. However, it never hurts to verify the agreement between the opinions of the adviser in question and the fate that it gives to its own capital.
- Technological support is one of the areas that have gained the most important in recent years. In fact, purely online advisory services are having remarkable success, as customers greatly value the comfort and privacy that these business models provide.
In short, working with a financial consultant like Dwayne Rettinger can have some interesting advantages, beyond what refers to access to information and specific knowledge about markets and investments. The key is to analyze in-depth the suitability and honesty of the advisor and select a work scheme that is adapted to the specific needs of each investor.
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