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Top 3 Tips to Help You When You Are Looking For A Financial Adviser

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I share with you below my top 3 tips that will help you make a wise and informed decision when you’re looking for a financial adviser.

Find out if the adviser is an independent or a ‘tied’ agent?

If they are a tied agent they are bound to the company that they are employed by and will only recommend that company’s products and services. Although their products and services might be good, they may not be suited to your needs, but they will recommend them anyway because they cannot recommend products or services from outside of that company.

Because a tied agent can only sell the products from the company they work for their advice can be biased.  However, if that company has a great product that is very suitable for your needs then this shouldn’t be a problem.  A good agent should tell you if they are a tied agent, but it doesn’t hurt to ask if they don’t tell you up front.

An independent agent will not be tied to one specific company but will work independently and can sell products and services from several different companies.  Even though they have a bigger range of products and services to recommend, they may still be biased and promote the product or service that will earn them the highest commission.

Both independent and tied agents have advantages and disadvantages and a good, honest adviser will want to do what is best for you and not what is best for him.  It is helpful if you do your homework and have some idea of what you want so you will know if their recommendations would be suited to you and your family.

Find out how the adviser makes their money.

Many financial advisers will work on a commission basis and as such they may try to sell you higher priced items to earn a higher commission. They may also contact you whenever they are trying to make a sale rather than contact you to follow up with your investment plan.

Find out just how qualified the financial adviser is

Find out whether they are experienced in just one area or whether they can help you with all of your financial needs. If you find an adviser that specializes in one particular area but can’t help you in other areas then you might need to find another adviser for the other areas of financial advice. This can be more costly if you have more than one adviser working for you.  There are many financial services that will be able to help you with all of your financial needs in one place.

 

I find that these three tips are the important factors to consider when choosing a financial investment adviser.  Remember that they will be working for you so take your time to choose someone that you believe is right for the job.

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Investment

4 Things You Should Not Forget When You Want to Make an Investment Move.

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4 Things You Should Not Forget When You Want to Make an Investment Move.

We don’t save for saving sake. We save for a lot of reasons and one of the main reasons we save is to invest. Leaving your money in a savings account only yields peanuts and so you can’t just leave your money there forever. A savings account is good if you want to save for a particular need in the short term.

It is therefore very needful to learn about investments and how best you can put your money to work and earn for you whiles you concentrate on other stuff. An investment should yield more profit than if the money was put into a savings account.

Also, when you save your money in a savings account over a long period, your money is affected by inflation which reduces your money’s worth over time. Inflation, which refers to the rise in prices of goods and services makes your money worth less over time.

The other thing is that you don’t use all your savings on investment. You can start with 50% of your savings or less and top it up when you gain more experience investing.

Unfortunately, not everyone is in the situation where it will be wiser to invest in anything more risky than a savings account.

Before you venture into investing, you should consider these factors which will aid you in making your decisions of when, where and how to invest.

Is your money best put into investment now?

It is very important at every point in time you determine what your money will be best used for. For example, if you have a debt to pay which keeps compounding over time costing you for instance 25% annually, wouldn’t it be wiser to pay off that debt than investing in stocks which will probably grow at a rate 5%? If you agree then you can well proceed into considering additional factors.



Do your research

In decision making, research cannot be looked over. You need to find out how profitable the venture is before you invest your hard earned money. Weigh different investment options and make sure that you are going in for the package that best suits your needs and objectives.

Consider short leaps

You are not obliged to possess billions before you start investing. Moreover, if you have little to no experience then it is advisable that you take very careful steps and be careful about how much you invest initially. With time, you will grow flight wings and you can then put more money into the investment. But if you’re just starting out, then start small and build up your experience and knowledge.

How much risk can you tolerate?

In life, higher risks usually reflect higher returns. Investment is not any different as the higher risk you make towards an investment, the higher the potential of you getting higher returns.

Figure out what kind of personality you are. Are you the type who won’t be able to sleep or stop worrying about the probabilities of you losing your money, or are you the type who can put all out and be willing to accept all loses without breaking down? if you are the former, then consider taking only less risky investments like bonds which are relatively safer. However if you’re the later, then dare to take more risky moves like growth stocks for the possibility of getting much bigger returns.

 

 

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