Season 2 Episode 8: How to choose a financial advisor
Feb 27, 2023
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Exploring the importance of choosing a financial advisor after life transitions like divorce, focusing on fiduciary responsibility and understanding financial advisory fees. Hosts share personal anecdotes and provide insights on selecting the right advisor aligned with financial goals.
Seeking financial guidance post-divorce aids in planning for future stability and navigating uncertainties.
Selecting a financial advisor aligned with individual needs ensures personalized planning encompassing retirement, taxes, and more.
Deep dives
Importance of Financial Planning Post-Divorce
Following a divorce after a 26-year marriage, the protagonist, Janelle, highlighted the significance of seeking financial guidance when transitioning into a new life stage. Lack of involvement in financial matters during the marriage led to post-divorce financial uncertainties. Partnering with a financial advisor enabled Janelle to navigate these challenges and plan for her future financial stability.
Choosing the Right Financial Advisor
Janelle's experience shed light on the common dilemma of selecting a suitable financial advisor. The episode emphasized the importance of finding an advisor aligned with one's individual needs, considering factors such as expertise in retirement income planning, social security advice, and tax guidance. The narrative underscored the need for a personalized approach to financial planning tailored to specific circumstances.
Holistic Approach to Wealth Management
The discussion highlighted the significance of a comprehensive, integrated approach to wealth management beyond mere investment strategies. It emphasized the role of a financial planner in coordinating various aspects of financial life, encompassing tax planning, insurance, estate planning, and retirement preparation. Recognizing the dynamic nature of financial planning, the narrative emphasized regular updates and ongoing financial guidance.
Evaluation of Financial Advisor Costs
Among the key considerations in financial planning is assessing the total costs associated with different types of financial advisors. The episode explored various fee structures, including commissions, asset-based fees, and underlying expense ratios. Emphasizing the value proposition of professional financial advice, the narrative underscored the importance of balancing costs with the quality and scope of financial services provided.
Despite the many reasons to get help from a financial advisor – especially in today’s climate – only 35% currently work with a financial professional. In this episode of Edelman Financial Engines’ Everyday Wealth™, Jean and wealth planner Isabel Barrow talk to a listener who wants to choose the right financial advisor after going through a litigious divorce. Later in the episode, Jean and Isabel discuss considerations to make when you’re looking for a wealth planner and questions to ask to help you choose the right one.
Ms. Chatzky receives cash compensation for acting as host of the Everyday Wealth podcast and for related activities and therefore has an incentive to endorse Edelman Financial Engines and its planners. That compensation is a fixed sum paid on an annual basis; and reimbursement for certain expenses. The amount paid each year does not vary, is not based on show content or any results-dependent factors (e.g., popularity of the show).
This show is pre-recorded, and any callers are prescreened.
The information being provided is for informational and educational purposes only and should not be construed as investment advice. You should consult with a financial advisor to help determine the best options for your particular circumstances.