Evaluate Your Financial Planner –Tips to Get Portfolio Wealth Management Services in West Chester PA

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So maybe you are retired or still working, but you have a financial planner. You have been diligently following their advice regarding your financial affairs. Perhaps you talk to them one a week or once a year, but you are just not sure if they are the planner for you. How would you know? Who can you ask?

Most books and articles focus on why you need a planner or how to find one, but not many focuses on how to evaluate the one you already have. If you find yourself in these circumstances then this article is written for you. The truth is most people end up working with their current planner because a friend, parent or business associate referred them. This is not always the case, but it is commonplace in the industry. So what criteria can you use to evaluate how you planner is doing for you? Here are a couple suggestions:

Is your Financial Planner Right for you?

1. Do they communicate regularly?

Communication is essential in any relationship and your financial planner is no different. Some clients like to communicate weekly, while others only once per year, but there is no hard and fast rule. In any event, your planner should be making an effort to contact you a couple times per year.

However, there are exceptions to the rule like if a major event occurs such as the financial crisis of 2008. If your planner has not corresponded with you since the start of the financial crisis, or if they take two to three weeks to return your phone calls, it should raise a red flag. You might want to consider seeking some new advice, or at the very least get a second opinion.

2. Are they responsive to your requests?

Some planners have a handful of clients, while other have hundreds, but you should be receiving timely replies to your inquiries. While you may not be your planner´s largest client, they should be helpful and respond when you have questions.

3. Do they explain all decisions and review performance?

You will be making a lot of decisions throughout the course of the relationship with your planner, but it is essential you know the rationale for each one you make. Make sure your planner is explaining things in plain english. The act of making a decision does little good unless you understand why you are making it in the first place.

If your planner is managing your investments then you should keep a watchful eye on your performance. If your investments are generating returns substantially above or below the general indexes then you should start asking questions. Substantial deviations from the market could indicate your planner is asleep at the wheel, or has invested you in vehicles that might not match your risk tolerance. Regardless, a good planner will review your portfolio with you and provide analysis at various intervals.

4. Know what you are paying for?

Make sure you know exactly what you are paying for and what you are getting for it. Some fees will come directly from the planner, while others may be charged by the investment your hold. There can be account fees, operating expenses, management fees, planning fees and upfront loads, just to name a few. Be sure your advisor clearly lays out all expenses with ample justification for each.

This list is not meant to be all-inclusive, but it should help you determine if your level of service and satisfaction are being met. Remember, every planner / client relationship is unique, but if you are feeling uneasy, it is worth your time to discuss it with your planner. If you are unhappy with your planner´s response, then do not settle. There are plenty of well-qualified planners out there who will be happy to serve you.

Disclosure:

This article meant for general illustration and/or informational purposes only. The views expressed are those of the author and are not necessarily the opinion of Royal Alliance Associates, Inc..

This material should not be relied upon as investment advice. Investors should seek the advice of their financial advisor prior to making any changes to their investment strategy or purchasing any securities. Investors should note that there are risks inherent in all investments, such as fluctuations in investment principal. Past performance of any market, index, investment or strategy cannot be relied upon as a guarantee of future results. This article contains forward-looking statements and projections. There are no guarantees that these results will be achieved. Due to volatility within the markets mentioned, opinions are subject to change without notice. Investing is subject to risks including loss of principal invested.

Securities and Advisory Services Offered through Royal Alliance Associates, Inc. Member FINRA/SIPC.

Advisory services offered through Key Financial, Inc.

A Registered Investment Advisor not affiliated with Royal Alliance.

1560 McDaniel Drive, West Chester, PA 19380

E-mail: pbrennan@keyfinancialinc.com, Phone: 610-429-9050

For more information, please visit www.keyfinancialinc.com.