Choosing The Right Financial Advisor

25 July 2019

There are plenty of financial advisors out there; you can never have trouble finding one. But, like buying any product, you need to find the right one. Deciding the type of advisor you should hire can be challenging. With poor research, you may end up losing a large sum of money from carelessness and ineptness. Thus, it is essential that you determine which advisor will help you meet your goals. The following are five steps to selecting the best financial advisor.

Contents

1 Choosing the Right Financial Advisor:

Choosing the Right Financial Advisor:

1. Know your financial needs:

There are various reasons why you would want to hire a financial advisor. For instance, you may need help in managing an inheritance, a retirement fund, or a loan. Financial advisors have diverse experience and expertise. Thus, not every advisor will be able to meet your needs.

This is why you need a financial adviser that can help you in every step of the way. Since the requirements of each individual are different, you need someone that can help create personalized investment solutions for you and your financial needs. Make sure to share and discuss your expectations from the adviser in advance.

Ensure you identify and rank your financial goals. You should be clear on the amount of capital you’re investing. Also, you should state your financial objectives and how much risk you are willing to sustain. It will help you select the right advisor.

2. Expertise:

Always go for certified financial advisors because the fact that they are licensed will help ensure you that the advisor you are about to hire is qualified and that they know exactly what to do and how to help you. Besides, credentials issued by independent bodies can be another evidence of qualification. Find a financial advisor in West Des Moines with a CFP (Certified Public Planner). It is the most significant credential. Its members must pass the tests administered by the CFBS. Moreover, find out whether he/she takes the annual courses required by the law.

3. Experience:

Experience is vital if you are to entrust this person with your dreams. Most financial advisors ventured in other fields before getting into a financial career. It equips them with knowledge about financial investments in different areas.

But you should remember that everyone has to start somewhere. Intelligence, responsibility, and passion can, in some cases, make up for the experience.

4. Cost:

Fees and commissions can end up making your investment, not so fruitful. Discuss the advisor’s compensation before closing the deal. It will avoid any conflicts on payment. You need to study the record of the adviser and your anticipated future record. For example, if your stock portfolio is 8%. You agree that the advisor gets 4%. Then, your net return will be 4%.

5. Compatibility:

Your financial advisor should have a personality that makes you comfortable. If you do not like your advisor, you will find it so difficult to open up about your financial concerns. Find a financial advisor in West Des Moines who has the patience to answer your questions.

Face-face meeting is a great way to assess your advisor, giving you a better impression. Would you marry a person who you meet at an online dating service without a face-face meeting? The same case applies here; you should not give your financial future to a stranger.

Bottom Line:

Remember how much you worked hard to earn the capital. Pick the best advisor and protect your wealth. Also, ensure he/she has the expertise needed to provide the best advice.

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Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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A Comprehensive Guide to Law Firm Finance in 2021

Have you been practicing law for a while? Today, many lawyers are stepping into the entrepreneurship world to open their law firms. Indeed, practicing under experienced lawyers gives a lot of exposure but having autonomy at work is equally vital. You can choose clients and legal cases of your choice and practice in a particular area. Likewise, you can enjoy flexibility and freedom, make decisions, and set your priorities.However, most lawyers don’t understand that starting a law firm is more than practicing law. Apart from legal responsibilities, you have to recruit people, market the law firm, and most importantly, manage finances. You have to document a long-term financial strategy to stay on top of your daily budget and earn profits. At the same time, you have to manage taxes, acquire funding, handle invoices, and much more.To help you get started, here is a comprehensive guide to law firm finance in 2021. 1. Create a Long-Term Financial Strategy:As a law firm owner, you have to establish a vision for the firm’s future. Do you picture a multi-lawyer firm handing corporate clients? Or you want to step into litigation or criminal law? Having a clear idea of long-term goals will help in creating a well-defined financial strategy. You can start putting funds aside for expansion from the beginning.Likewise, you have to keep up with numbers, forecasts, and budgets to manage the day-to-day cash flow. You have to ensure the business has enough funds to secure new clients and take cases to trial. After all, not every case settles. However, if you don’t have a knack for numbers, consider learning the ropes.You can look for virtual programs such as MSF online to avoid the hassle of traveling to college. After all, online education gives students a lot of flexibility, motivating them to keep learning. As for your law firm, it will help in managing finances efficiently while practicing law. 2. Get Access to Funding:Although you are stepping into a service business, you will need a hefty amount of capital and cash to start a law firm. From office rentals, conference rooms, stationary costs to staffing – you will come across a long list of expenses. Therefore, look for ways to obtain capital for your law firm. Here are some of the options you can explore. Savings: Whenever starting a business, make sure a small chunk of the capital comes from personal savings. That way, you will keep working in the game because you won’t be liable to another person when things get tough. Bank Loan: You can start with a few thousand dollars, but more capital gives lawyers enough runway to make the business profitable. Hence, if your savings don’t seem sufficient, opt for a bank loan or open a credit line to raise capital. Startup Incubators: Today, many incubators connect new business owners with funding to get going. Often, they use their contacts with angel investors to fund new businesses or seek help from venture capitalists. 3. Manage Taxes:Most attorneys operating law firms aren’t aware of legal obligations. As a result, taxes hit them in surprising ways. You might get a call from Internal Revenue System (IRS) or a hefty fine for missing the deadline.Similarly, many lawyers have difficulty categorizing deductibles. You might think everything is deductible, whereas your tax liability is higher than you predicted. These pitfalls not only halt business operations but are super pricey too.Hence, consider bringing an experienced tax specialist on board. However, if you don’t have a budget for additional hiring, learn about the taxation policies yourself. It doesn’t mean you have to go back to school; instead, look for online programs. You can opt for an online LLM tax program and learn from the comfort of your home and office. It will help you plan for tax liability, closing doors for IRS audit, and incorrect tax deductions. 4. Streamline Invoicing & Payment System: Usually, lawyers have different payment policies. When dealing with corporate clients, they charge a monthly fee and have separate legal charges for cases. On the other hand, they don’t charge when fighting for accident victims until the negligent party’s proven guilty. Despite having different payment policies, you must have an appropriate invoicing and payment system at the firm. You can leverage savvy software to automate the firm’s finances.Moreover, record your income correctly. If you charge a retainer fee, treat it as an advance payment and track its spending on every case. Similarly, avoid recording any income in your financials until you have won the case. It will give you a realistic view of the firm’s financial position, making sure you are on the right track. Besides this, don’t forget to set flexible billing terms with the clients and discuss everything upfront to avoid issues later. 5. Prepare Budgets, Reports, & KPIs: Having a budget is imperative for your law firm’s financial success. You have to estimate your expenses and the revenue you expect to earn. It will give you a solid idea of how much you should work to make the business profitable. Likewise, you have to prepare financials to catch a glimpse of profitability.Well, to begin effective financial reporting, you have to start with the bookkeeping basics. You have to record all financial transactions and maintain a separate account for every client.After this, you can prepare an income statement and balance sheet to determine the law firm’s equity. Also, create a cash flow statement to understand how much cash goes out and comes into the business. All these financials will be a brilliant source of insights about your law firm. You can spot trends, overcome weaknesses, and capitalize on your strengths to make the business more profitable. Final Thoughts: Every successful law firm considers numbers and data first. You have to create an excellent financial plan with a growth vision to make your law firm successful. Similarly, you have to manage cash flow, follow a detailed billing process, and raise sufficient capital. As you progress forward, a strong financial position will unfold new growth opportunities. You can tap into new practice areas, offer more services, and expand your team.Read Also:How To Choose A Practice Management Software For Your Law Firm How Do Law Firms Help Companies with Their Real Estate Issues?

Diving Into The Shiny World Of Precious Metal Investments

So, if you're wondering just how the world of precious metal, investing and teenagers get in the same sentence, stick around. Not many would think of precious metals when you're trying to find an investment spot for your birthday money or part-time job salary. But believe it or not, this shiny (literally!) investment avenue could lead you to financial security in the future. The A-B-Cs Of Precious Metal Investments From handing down family heirlooms of gold jewellery to simply stashing away some silver eagle coins, we're all familiar with the idea of precious metals. You know the ones: gold, silver, and their less well-known cousins, platinum, copper, and palladium. The way we used to think about these investments has seen quite a transformation, along with civilization. We’ve started diversifying beyond just gold and silver.Now you've got a whole ton of shiny options - IRAs based on precious metals, bullion trading (cause who doesn't want to feel like a pirate?), certificates, investment-grade coins, and even ETFs and stocks. Who knew investing could be this exciting? The New Gold StandardTalk precious metal, most minds dart straight to gold, which let's agree has an undeniable charm. It’s been highly sought after since time immemorial, due to its rarity and non-rusting nature. Plus, investing in gold has been a traditional choice for many, and they're not entirely wrong. Think about it – Gold’s stable price, easy liquidity and the fact that it can act as a cover during economic kerfuffles make it a sure winner in many investor’s books. I know right?But don't let that stop you from exploring the exciting slew of modern investment options, like digital gold, gold stocks, online jewellery accounts, and ETFs. And if you're an adrenaline junkie who quite fancies the stock market, shares in gold mining companies could be your next big adventure. What Are The Factors That Drive One's' Desire To Hoard The Shiny Yellow Metals Gold has always been a center of attraction for the people. The allure of the precious metal, through generations, has mesmerized people in such a way that people have followed gold madly. There are some factors that drive one to chase shiny yellow metals. Let's’ discuss it all here. Inflation When the economy is doldrums, it can use the metals to safeguard its economy from an imminent fall. The prices of the metal fall slowly. This is teh reason many people run madly after the metal. To save oneself, people go for gold as an asset. Thus, you can say that precious metal (like gold and silver) is a hedged against inflation. World Of Political Crisis War and the political upheaval district not only the order of a nation but also spread anarchy and unrest. Under this situation, people tend to run into a gold hoarding mode. It is considered that political upheavals and other issues like that do not affect the economy of a nation. Systematic Financial Concerns When some political events completely demolish the country's internal system, the economy receives the first blow. Therefore, the overall impact on the economy is quite strong with systematic financial concerns. What Are The Benefits Of Investing In Precious Metals There are the benefits and the inherent value of precious metals. Let us try to understand it here for the sake of your importance. Please keep in mind that fiat money has risks and uncertainty. The value of the modern paper currency fluctuates from time to time. But the metals are far more flexible. Rising Demand The demand for precious metals keeps on increasing. Consider the central banks and governments, the pirate banks, or the private investors; the tendency to invest in intelligent metals keeps on increasing. They all ratify the investments in gold. Remember, gold and silver are not the only essential to the financial sector; they come under manufacturing in modern times. The digital age can not exist without these metals. So you can say it is one of your advantages with precious metals. Scarcity Elevates The Value Of These Metals Precious metals like gold and silver are the rate resorces. There is a limit to the amount of gold present in the world. Only around 20% of the gold in the world remained to be minded. This is why the value of these metals keeps on increasing with time. Another study says that gold will no longer be there after around 20 years. This may be why the demand for hoarding such precious metals keeps increasing with time. No Single Government Controls It The precious metals are beyond the periphery of control of the central government. This independence from the government has made it immune to falling value. Gold and silver have their freedom, and one can easily take it from one corner of the globe to the other corner. The precious metals offer protection from government overreach. This is the reason the precious metals have their own value, that's for sure. The Pros And (Minimal) Cons – The Golden Skinny So why invest in shiny rocks, you might ask? Owning a physical piece of gold (or pieces, if you're lucky) comes with a sense of security that doesn't quite compare to anything else. The value stays stable and can be traded easily, almost like your very own emergency fund. Surprising?But like any investment, it does come with its cons. The returns from gold investments aren't immediate, you'll have to play the long game to really see a sizable profit. But patience is a virtue, right? Finding The Right Boat To Sail – The Best Gold Investment Company For those looking to get on board the gold investment ship, Augusta Precious Metals could be your first stop. This company promises a secure way to dip your toes into the golden waters. With their reputation, you're setting sail for a secure financial future. Conclusion Every financial decision should take into account the local economic framework to ensure sound and realistic planning. Explore the world of gold, silver, and palladium investments—your treasure chest awaits. Read Also:Investors Agree: Gold And Silver Is The Way To Go Massage Gold Coast: Feel Relaxed and Rejuvenate Yourself Make Your Savings Goals Come True with Gold

Revolving Debt Vs Installment Debt – Which Impacts your Credit Score

This is a question that many Australian citizens are asking, and for good reason, as one’s credit score can seriously hinder a mortgage application or a business startup. Before we go into detail about the impact of these forms of debt on a person’s credit score, let’s define both revolving debt and installment debt. Revolving Debt: With a revolving debt, you borrow against an agreed limit of credit, much like a credit card, and as payments are made every month, the debt revolves and continues until such time as either the lender puts a halt on the line of credit, or borrower settles up and no longer uses the credit facilities. For some people, the credit card loop is extremely difficult to stop, as all a person’s salary goes on the card repayment, thus leaving the person with little choice but to continue to use the card until the next salary date, and the cycle continues. If the debt builds up, compound interest takes hold and the debt grows, with the borrower paying accruing interest over an indefinite period, and rather than continuing to use the line of credit. How Revolving Debt Can Impact Your Credit Score: Lenders look at revolving debt to be a strong indicator of the risk and your credit utilization is calculated by totaling the amount outstanding on all credit cards, against your overall credit milt. If your outgoings are high, there is less chance of obtaining another loan, at least until you have cleared one or two.Installment Debt: This is when you borrow a sum of money with an agreed monthly payment for the duration of the loan agreement, and unlike a credit card, you cannot reborrow, rather you must complete the scheduled payments on time until the loan has been paid off in full. Missing payments will result in extra interest charged and if a person has two or three loans to repay, this could lead to problems in the future, which is when many people look to debt consolidation as a way to clear all outstanding debts, leaving you with a single monthly payment to make. There are online lenders who specialize in bad credit personal loans, especially if the borrower wishes to consolidate their outstanding debts by taking out a debt consolidation package. Installment Debt and your Credit Score: Installment debt is viewed by the lender as less of a risk than revolving debt, mainly because the installment loan is secured against an asset. Another factor that influences the lender is the fact that an installment loan is not ongoing, which means there is less of a risk in defaulting on the loan.If you would like to explore the potential that debt consolidation offers, an online search is all it takes to make contact with the right loan provider who can tailor the package to suit your lifestyle. The expert can inform you of several ways to improve your credit score, thus increasing your chances of approval.Read Also:Debt Consolidation Plans For Your Debt Relief Are Debt Consolidation Loans Recommended For Credit Card Consolidation

Choosing The Right Financial Advisor