3 Things to Consider When Choosing a Financial Broker

  • Post comments:0 Comments
  • Reading time:6 mins read

For most investors, one of the biggest investments we make is in our homes. In fact, according to the National Association of Realtors, the average home price in the US was $211,400 in April 2014. But even if you aren’t a homeowner, your rental or condo fees certainly take up a substantial portion of your monthly budget.

Treating your home like an investment and choosing a good financial advisor can help you get the most out of that investment. Here are three things to consider when choosing a financial advisor who will be working with you on your real estate investing activities:

1. Reputation

When it comes to finding a financial advisor, look for someone who has established himself as an expert in his field and has built up a solid reputation for success and integrity. Ask former clients about their experiences with him and his firm and how satisfied they were with the service they received. If possible, request references from other business associates such as attorneys who have worked with him in the past. He should also be registered with state and federal regulatory agencies so you know he is licensed to provide advice about investments and securities.*

2. Services

The type of services offered by a financial advisor will matter greatly to you as an investor.* A good advisor should offer services

There are a lot of things that go into choosing a financial advisor. Some of the most important include:

1) Understand all the fees involved in your portfolio – is there a front-end load, back-end load or asset-based fee? Are there any trading costs? How about research costs? Are all the investments selected by the advisor or are some of them selected by you?

2) What is your financial situation, goals & risk tolerance? A good advisor will spend time with you and understand where you are financially and what you’d like to achieve in the future. They’ll also be able to explain to you the various investment options and how they fit with your goals and risk tolerance.

3) How do they communicate with their clients – phone, email, text or mail? It’s important to know how often you can reach them when it’s convenient for you. Always as soon as possible? Once a week on Thursdays or only after business hours?**

The most important thing to consider is the reputation and background of the broker.

If the name of your financial advisor isn’t well-known, or if he was recently started his own firm, it’s best to find a new one. If you have any doubts about your advisor’s reputation for honesty, this is a red flag.

If he has been in business for a while and still does not have a good reputation, ask around. Do some research on him. Does he seem to be honest? Does he have a good track record? If your financial advisor has been in business for a long time, look for any damaging marks on his record. There may have been some lawsuits filed against him that could impact your finances. Does he have experience handling investments? Your financial professional should be able to explain what he does and why it works. If you cannot understand what he says, it’s best to find someone else.

When looking at their websites, look at how they describe themselves and what they do. It should be easy to understand and written in plain English rather than jargon that financial professionals use to make themselves sound more educated than they are.

Make sure your financial professional agrees with your investment philosophy before you give them control of your money. There’s no sense

One of the most important decisions you’ll make when choosing a broker is determining how much control you want to maintain in your financial matters. Financial advisors come in different flavors, and the most important thing to consider is the extent of your control. There are two primary types of financial advisors: fee-only and commission-based. Fee-only advisors work for a flat rate, with no commissions from products sold. They do not accept payments from any company or product, so they are completely unbiased in their recommendations for you. Commission-based advisors charge a percentage of the assets you invest with them. They are compensated by the companies or products they sell or recommend to you, which can create conflicts of interest.


Financial Advisors are not all the same. In fact, they can differ widely in their approach to investing.

The best thing you can do is to understand what you want from a financial advisor and then find one who fits that description. Here are a few things to consider:

1. How much do you want to pay?

2. How much will they cost you?

3. What kind of return can they give you?

Let’s start with the “costs”. If you are like most people, the costs of a financial advisor are the primary concern when choosing one.

These costs can come in two forms: fees and commissions. A fee is typically a flat rate charged for a service over a set time period; commissions are typically based on the amount of money being managed by the advisor.*

‘*Please note that just because an advisor charges a fee does not mean he or she will make better decisions for you than someone who charges commissions.’**

Today, people are more aware of the need for a good financial advisor. But selecting one can still be tricky.

A financial advisor offers many services. Some advisors will provide you with investment advice, while others will offer tax planning assistance. There are also those who will help you find a home mortgage or arrange life insurance coverage for you and your family. All of these services can be valuable and are offered by reputable advisors.

However, as with any service, it is important to determine what to look for in order to ensure that you receive the best possible service at a price that is affordable to you. Fortunately, there are some key factors that can help guide your choice process when selecting a financial advisor.*

Leave a Reply