![]() ![]() 'I think it's a really great app if you want to earn points doing easy every day things and it's also a good way to ensure that your Qantas points don't expire,' she said. She also checked the tyre pressure and brakes on her car, invited friends to join the app, and logged her blood pressure.īy the end of the week Queenie had an extra 624 Qantas points on her account. And they can cost significantly less than a human advisor - you might pay a robo-advisor 0.25% of your balance, while a typical financial advisor who charges a percentage of your assets will cost 1% or more. They often have low or no investment minimums, so you can get started with a modest amount. Robo-advisors: These are digital investment management services. Because they charge a flat fee rather than a percentage of the assets they manage, they have less incentive to serve only clients with large account balances. Gone are the days when you needed a six-figure bank account to get access to investment advice While many financial advisors still focus exclusively on high net worth clients, investors with fewer assets have more options than ever:įee-only financial planners who charge by the hour or by the plan: You can find these through advisor associations like the Garrett Planning Network and XY Planning Network. » Learn more about how to choose a financial advisor ![]() Some people struggle with that level of transparency no matter what when an advisor spans the family, it can be even more difficult. Honesty is fundamental in an advisor-client relationship: If you leave out key details, you'll sell yourself, your finances and the advisor short. If that kind of empathy isn't there, you may hesitate to bare your finances. "Advisors typically grow along with their client base, living similar lives to their clients' - they can relate and empathize to their life experiences as they are going through them," says Marcel Winger, a certified financial planner and founder of Mutual Wealth in Austin, Texas. You want an advisor who can relate to your life stage and financial situation. Your parents may love their financial advisor, but that doesn't mean you will. » Understand the difference between fee-only and fee-based financial advisors "Many people may call themselves a fiduciary, but if you really want to make sure they are, get it in writing," Ho advises. (Some advisors call themselves "fee-based," which generally means they are paid commissions alongside a fee from you.) Fee-only advisors are typically fiduciaries, which means they must have your best interests in mind when recommending investments. "Fee-only" means the advisor is paid by you directly, and only by you he or she is not paid commissions to offer certain financial products. You should approach any advisors - whether they have a relationship with your parents or not - with two questions: "Are you fee-only?" and "Are you a fiduciary?" "Unfortunately, this is more the rule than the exception." "My parents had a financial advisor, and when I was starting off in my career, I quickly realized she was incentivized to sell investment products instead of giving holistic advice that would benefit me," says Charles Ho, a certified financial planner and founder of Legacy Builders Financial in Folsom, California. Ten or 20 years ago, your parents may not have. The effort appears dead, but it leaves at least a small legacy: More people know to press advisors about how they make their money. The Department of Labor proposed a regulation known as the "fiduciary rule" requiring just that. The idea that financial advisors should always act in the best interest of clients has been in the news lately. It's wise to look beyond those relationships and do your own due diligence. But it's also not a given that your parents' advisor is a good fit for you and your finances. And yet, when seeking that advice, you may be tempted to blindly turn to your parents' - or another relative's - longtime financial advisor. ![]()
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