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Many women want professional investment advice as soon as they have enough money saved, but they aren’t sure how to select a financial advisor. The variety of credentials and services can be overwhelming and confusing.
The products and services offered by a financial advisor is a good starting point for making your selection. If an investment firm or advisor doesn’t have the products or services you want, you can quickly move to your next possible choice. Advisor’s offerings will depend on their area of expertise, and also, the level of their clients’ wealth; the two are intertwined.
Areas of expertise can include any of the following:
- Financial planning, including budgeting, tax and estate issues
- Individual security selection
- Choosing funds for clients, either large institutional accounts (more common) or even mutual funds
The amount of money you are seeking to have managed guides you to the right financial advisor. For example, the needs of a client with $100,000 can be quite different from a client with $3,000,000 to invest.
As a very general rule, $100,000 is the lowest amount of assets that financial advisors require of their clients. Of course, there are exceptions to this, as some advisors take clients with less. On the other hand, many financial professionals require $500,000 and much more in investable assets to take on a client.
Don’t be put off by this reality. This simply makes it easy for you, because your level of wealth can become your first screening criteria.
After making the important decision of whether to use the services of a financial advisor, the next big step is to choose the right advisor based on your individual needs. Recommendations from friends and family can be helpful, but a financial woman chooses an advisor based on important factors that will lead help her reach her financial goals.