Sun Aug 25 2024, by Tyler Gardner

Three Essential Steps Before Hiring a Financial Advisor

If you are thinking about working with a financial advisor, you might want to do these three things first.

I'm Tyler, a former financial advisor and portfolio manager, and now I create financial content for free so that you don't have to pay for it.

1. Be Aware of Fee-Only Advisors

Fee-only advisors do not operate the same as a flat annual fee advisor. These advisors often charge a percentage of your assets under management, typically around 1%. While paying $100 on a $10,000 investment might seem reasonable, consider this: paying $20,000 on a $2 million portfolio annually appears excessive for basic services.

2. Look for an Independent Advisor

Registered investment advisors are legally required to prioritize your interests over commissions. In contrast, big bank advisors may push proprietary products that serve their best interests instead of yours.

3. Read These Three Essential Books

• All About Asset Allocation by Richard Fairchild
• The Only Investment Guide You'll Ever Need by Andrew Tobias
• The Psychology of Money by Morgan Housel

By reading these three books, you will gain knowledge equivalent to about 50% of the financial advisors I know. Moreover, you will gain the ability and confidence needed to invest independently, potentially saving you hundreds of thousands of dollars over your lifetime.

If any of this information is helpful, please like and follow for more content, and together we'll take steps toward achieving your financial goals.

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