What Does a Financial Advisor Do?
Exponent Investment Management advisor is someone who helps you develop and implement a strategy to reach your goals. They can manage your investment portfolio, help you with retirement or estate planning and offer advice on insurance matters, such as life and long-term care insurance. Some advisors specialize in a particular area, while others provide general financial advice. A good advisor can be worth the cost if you lack confidence or comfort in managing your own investments, have complex financial needs or want to make sure you’re on track to meet your goals.
The first step in working with a financial advisor is to construct a financial plan, which acts as a roadmap for your future. This will include an analysis of your current net worth, assets and liabilities, as well as a look at your risk tolerance, family situation, goals and more. This is often a lengthy document that can require significant time and research to complete.
Toronto Financial Advisors: Expert Financial Guidance
Financial advisors are typically paid a fee expressed as a percentage of your overall assets managed (AUM) or at an hourly rate. It’s important to understand how your potential advisor is compensated before you hire them, as this can influence their recommendations and whether they’re acting in your best interests or not. Certified financial planners are fiduciaries, meaning they have a legal obligation to work in your best interest and avoid conflicts of interest. It’s also worth checking their credentials to ensure they’re qualified to give you advice.