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Financial Advisors: Professional Help
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As the name suggests, a financial advisor is someone who offers you advice on how to meet your financial goals. They can help you with everything from setting goals to choosing investments to helping you select the best insurance policy.
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So when should you go to a financial advisor? Well, that depends. Some people like to change their own oil and spark plugs. Similarly, financial do-it-yourselfers might feel more comfortable setting up and keeping an eye on their own investment plans.
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Other investors, however, are more comfortable having a financial planner walk them through each step of the investing process. For them, the cost of having professional assistance is worth knowing they've followed professional advice.
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However, just as you probably wouldn't attempt to rebuild your car's engine (unless you're a mechanic yourself), there are certain situations where most folks could use the help of a financial planner. These include such things as estate planning (wills, trusts, etc.), complex tax planning, or the unexpected death of a spouse.
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One word of caution: Everyone from your uncle to your barber can call himself a financial advisor. So it's important to find someone with training that you can trust. A good starting point is his or her Form ADV (used by advisors to obtain state registration). Form ADV includes advisors' educational backgrounds and list which professional designations they hold. In Schedule F of the form, you'll discover how advisors are compensated, and whether they have business ties to particular insurance or mutual fund companies.
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