Bank Advisor

Archive for November 12th, 2009

If you want your money to work for you in the present and the future, you need to start investing in financial planning. But you won’t be able to do it on your own. It’s up to you to bring in the income, but you need the assistance from an Atlanta certified financial adviser. But before you do that, you need to figure out what kind experience and abilities that your Atlanta financial advisor needs to have before you hire him/her. Here are some things you need to know:

Experience is Critical

During your search for the best Atlanta financial planner, you need to check out those who are certified and have a background with some great training. The experience of your Atlanta financial planner, along with their credentials means that they have gone through a lot of the scenarios you may be presenting them with. It also helps if you work with an Atlanta financial advisor who has a background in business. You want someone in Atlanta who has seen enough to give you the confidence to pick them to be your partner in planning your financial future.

Skills of an Adviser

When you hook up with an Atlanta financial advisor, they will need to do many different things with your money and be able to talk to you about every step. Here are some of the basic skills that your Atlanta financial advisor should have before taking on your business.

• Financial planning: This is the basic skill an adviser uses to manage the money you already have, guarding it against negative changes and advising you on changes that can be made to make it grow over time.

• Business planning: If you own a business, you want to invest in its future, too. Your advisor should help you manage the plan for the business through the years and work with you when you want to retire and explain how that will affect the business.

• Insurance planning: Your insurance planning is another investment in the future, in which you work with your Atlanta advisor to see that your family is taken care of depending on what kind of policies you purchase.

• Estate planning: Your Atlanta advisor needs to help you put together an estate plan that will give your family a clear picture of where your money should go after you are gone.

• Retirement planning: Finally, your retirement income needs to come from a solid foundation of planning and investments that your advisor will help you with.

What to Expect in Fees

Your first choice in a financial planner should be someone who is an Atlanta fee-only financial advisor. The best people to work with are those who charge a flat fee based on your assets instead of making money based on how much money you make. You need to be able to trust the advice they are giving you.

Patrick Johnson is an investment advisor who meets all of these parameters and will help you with managing your money for the future. By offering a fee only system, you will find experience and training at a reasonable price.

Since the internet has become a popular place to buy and sell goods, online banking services have made their way into most homes. Easier to pay bills, manage money, and transfer money to other accounts, internet banking is a convenient way to handle money. Many employers now have direct deposit, which makes it easier to put money into one’s account. No more trips to the bank every Friday. The money is in the account the night before and is available for use on Friday morning. Most banks now offer some type of banking services on the net. While not all banks have all of the options that people will need, many banks now offer more services than they have before.

Some banks will allow people to send electronic checks to credit card companies and student loan organizations instead of writing out a check each month. This saves time and paper. Some banks will allow a person to see their account at any time during the day and allow them to make changes that they see fit.

They can transfer money into a savings account, open other accounts, or buy items online. Since many people shop online, they will use their debt card to pay for the items that they purchase. This can make money management even easier. Online banks that do not have traditional branches are also beginning to open on the internet. Without a location to visit, people conduct all of their banking online.

In the future, this may become the trend. Online banking that people will do exclusively on the internet is not out of reach. These days, people can look into investing, opening up other accounts, and taking out loans without leaving their computer. There are many advantages to this form of banking. Money is transferred faster, people can check their balances within minutes, and people will no longer miss bill payments.

There are also disadvantages to operating solely on the internet. Sometimes it is necessary to talk with a banking representative in case there is a problem with the account. Being able to talk to a person face to face will help the situation. Online banking services would require that people speak through email or over the phone. Another problem is that errors concerning the amount of money that a person has in their account. Without a paper trail, the situation could be dire.

Online banking services still have a long way to go, but those who use them now say that it is very convenient and easy to use. People will continue visiting their bank and conducting business by talking with others. While internet banking may be more convenient, most people still feel more comfortable speaking with a person rather than typing an email or talking over the phone.

“Your biggest financial risk isn’t investing in the stock market. It’s bad advice when you invest in the stock market. Low quality advisors, with very few credentials, are the primary providers of bad advice. They are paid to sell investment and insurance products. They are not paid to help you achieve your financial goals”.

Why should advisors be required to document their credentials?

Documentation for credentials, ethics, and business practices is the only way advisors can prove they are the experts they say they are. Plus, documentation reduces your risk of selecting the wrong advisor.

Why do Some Advisors Hide their credentials?

Advisors hide weak credentials for one basic reason – exposure will cause them to lose sales. Their strategy is not to provide the information and hope you don’t know enough to ask key questions about their credentials, ethics, and business practices.

What hidden credentials?

Financial advisors have a least 40 characteristics that describe their competency, ethics and business practices. Some of the more important ones are: education, certifications, experience, compliance records, conflicts of interest, RIA and fiduciary statuses, methods of compensation, and wealth management services.

In the absence of solid credentials, how do weak advisors compete?

Advisors with bad credentials use a time-tested strategy that works. They compete with their personalities and sales skills. That’s why so many investors refer to their advisors as being nice people. They can’t believe nice people will take advantage of them. They are also convinced their advisors are financial experts because the advisors said so – a key component of every sales pitch. Unfortunately, personalities and sales skills have nothing to do with advisor competency and integrity.

Your biggest financial risk

It stands to reason bad advisors give bad advice. It could be deliberate so they can make more money. Or, it could be inadvertent because they don’t have the knowledge to give good advice. Regardless of the reason, bad advice, in particular in down markets, can damage or destroy financial futures.

High quality professionals document credentials

High quality professionals are proud of their credentials because they have spent years and thousands of hours acquiring them. They are willing to document their credentials to reduce your risk of selecting the wrong advisor.

Where can I go to learn how to bad advice and how to select competent, ethical advisors?

There is one website that provides free educational content on those topics and you don’t have to register to access the information – www.paladinregistry.com / Tips-4-Investors.