As an “finance insider” with a focus on consumer education, Chris Longworth was recently interviewed by Authority Magazine because of his deep insights into the finance industry. He was asked the question, “If your loved one wanted to hire a financial advisor, which five things would you advise them to find out about before committing?
Here are Chris Longworth’s five tips for finding the right financial advisor:
1) Be very clear about what your goals are for the money you’re investing. This must be very clear and well defined as this makes a huge difference in the type of investment your advisor would recommend.
2) Find out if the advisor is a specialist in any one area of investing. See if that matches your expectations.
3) Don’t be afraid to ask about their background, knowledge, and personal history in the industry. You want to know how long they’ve been an advisor, where they went to school, and what certificates beyond the basics they possess.
4) What is their track record? What is their average loss rate? Do they specialize in lifelong income distribution?
5) This last question has two parts: First, how much money could you lose from any one of your investments? And second, what is your guarantee of income distribution and how much will you get?
Remember, if you don’t do your due diligence and vet your financial advisor, you may end up with not-so-favorable results. One situation involves having your account “churned.” What churned means is that the advisor, instead of working in your best interest, is making trades, and moving investments in your account to rack up commissions on a regular basis.
Take the time to educate yourself about money and investments so that you can make knowledgeable decisions and reduce the possibility of falling prey to unethical advisors.
He continued the interview by explaining that financial advisors are not just for very wealthy people.
Chris says, “The fact that financial illiteracy is at those epidemic numbers mentioned previously means that everyone can use assistance when it comes to managing their money. The best way to get the help needed is to find an academically based advisor that you can trust, have confidence in, and who will help you learn about money management so that you have confidence in the choices you make. I am teaching my clients to make educated choices about their finances in the future. When I help someone and they ask if, at the next meeting, they can bring someone they know or care about to the meeting so they can learn as well.”
“No one is born understanding the complex world of finances. If you are making money and want to fund your future, you can benefit from the services of a financial advisor.”
If you have any questions, please reach out to Chris Longworth. You can easily set up an appointment to speak via Zoom at this link: https://calendly.com/thefinancialeducationgroup