What You Need to Know About the Idea of Hiring a Financial Planner

You have thought of the idea of hiring a financial planner for a good reason. Maybe you have heard about the prospect from a friend or co-worker who also experienced some financial difficulty in the past. People hire financial planners to advise clients on how to save their money, including tips on how to invest and grow it. If you have a particular business objective, choosing a financial planner Adelaide who knows a thing or two about how to reach that goal is crucial, especially if you feel like you do not have what it takes to manage your finances and be successful at that.

Many financial planners also specialise in other economic aspects of a private individual, including but not limited to estate planning and retirements. Their consultation services mainly cover a wide range of financial matters.

Unlike lawyers and accountants though, anyone can easily pose as a financial planner without the need to show a license or set of credentials. So, if you are planning to hire a planner soon, be sure to put in the effort in figuring out if you are talking to a legitimate financial planner who can provide you with the advice you need about your finances.

For the most part, financial planners make a living in three different ways. It can either come from commissions, hourly charges or fees, or flat rate. Those who rely on commissions are financial planners who get paid when a client buys or sells a stock or any other alternative money-making investment. However, these advisers are not the most reliable since they might not be as partial as they should since they want you to make the most earnings or profit on an investment, the apparent reason of which is for them to speed up the process of getting a commission.

Majority of financial planners today earn their living by way of getting paid for their counsel. Simply put, they are not getting a cut or commission from fund companies or life insurers. Payment comes in the form of a flat fee or annual fee, but some prefer getting paid by the hour, which is similar to how most lawyers want to get paid. If you agree to pay an annual fee, the usual scenario is you give them 1% of the assets they provide you with advice, such as retirement, college savings, and investments. If you prefer a flat fee for a particular financial plan, expect to pay at least $1,500 for the entire duration.

Remember that in choosing a financial planner Adelaide, you need to agree with regards to how much your finances are worth and the exact amount you plan on investing. It is crucial because some financial advisers out there will not provide their services if the investment you plan on making is less than what they expect.