How to pick a financial adviser

well from getting smart about your car purchase to staying smart about your overall Financial well-being a 2023 Northwestern Mutual study finds two-thirds of Americans believe their financial planning needing some improvement here a 4% rise from 2022 and nearly one in five of those surveyed said that economic uncertainty LED them to either begin working with a financial adviser or plan to work with one at a later date the report found that generally working with a financial adviser boosts confidence in a Range areas and here with more is domain money founder and CEO Adam Dell Adam great to have you here in studio with us thanks for having me absolutely first and foremost I mean we got to talk about the results that many people expect when they begin working with a financial adviser and how they can ultimately regardless of their financial status find an adviser that wants to work with them too yeah a lot of people feel as though access to a financial adviser is inaccessible because they don't have enough assets to be interesting to traditional raas and so it's important to find a financial adviser who will work with you where you are in your financial life and so ultimately with that in mind what do people ultimately want in that financial advisor experience from what you're seeing yeah they want peace of mind they want a clear understanding of where they are and what their goals are and how they get there nobody plans to fail they fail to plan and so having a clear set of steps to take to reach your goals gives people you know a clear understanding of what they need to do in order to achieve what they want to do in their life um people have children they need to save for college they want to buy a house they need to save for that house they want to retire they need to plan for those things how do people know when they have a good financial adviser versus a financial adviser that's not executing in their best entrance or a frankly a bad financial advisor and distinguishing between the two well a good financial adviser won't charge you a 1% asset under management fee because there's an inherent conflict of interest with the 1% AUM fee every year your advisor is taking 1% of your assets away from you and over time that compounds to an enormous number of dollars over your life and so a good financial adviser will give you a clear financial plan for your goals and not charge you based on how much money you have and so as we think about where the financial advisor role is changing there's the whole element of gener generative Ai and artificial intelligence that's being layered into just about every career how is this impacting the of course advisor component of this too yeah people want to speak to a human being and a real expert that's knowledgeable about financial planning U I don't want to entrust my health to a robot I don't want to entrust my financial life to a robot I want to talk to a real live person who's not knowledgeable on the subject what's the immediate step that someone can take today to just begin on the pathway of improving their financial well-being the small decisions that can make big impacts over time yeah well at domain money we offer a free strategy session where people can talk to a financial advisor and get a clear understanding of what are the big things that we need to be thinking about for our family uh do we have debt uh are we on track for retirement have we put enough aside each month for the 29 529 savings plans for college those very basic things are really the starting point of financial planning then you get into bigger hopes and dreams well how do we take that vacation we want to take this year how do we make sure that we can retire sooner uh all of those things require planning and the best way to do that is to sit down and start today you know the the the expression the best time to plant a tree was 20 years ago the next best time is today same with financial planning and planning a tree of course an investment not just for the ecosystem of course more oxygen created but at the end of the day when you think about the Investments that people are asking you about now too it can be a range of things from should I invest in you know a property that I want to flip or should I invest in Bitcoin what what is that top investment that people are asking you about in order to create perhaps some passive stream of income as well yeah well the most important thing is to get the basics right make sure you're maxing out your tax advantaged accounts your um your 401k uh your Roth IRA and making sure that each one of those is um um set up properly we have lots of clients who come to us who have sort of bungled their Roth IRA and need some help sort of unwinding it and you know a lot of a lot of investment firms especially the Robos out there they don't really care whether or not you've done it right they just want an account and so uh ensuring that you've done that properly is really part of the basic the other thing is to ensure that you have an emergency fund in place because there are pertubations in people's lives and you need to have a buffer to ensure that if you do have a hiccup you have an emergency fund in place to take care of it domain money founder and CEO Adam Dell thanks so much for taking the time here thanks for having me absolutely

Channel: Yahoo Finance

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Keywords: Yahoo Finance, Personal Finance, Money, Investing, Business, Savings, Investment, Stocks, Bonds, FX, Currencies, NYSE, Equities, News, Politics, Market, Markets, Yahoo FInance Premium, Stock market, financial adviser

Id: KohB8AsL76U

Length: 5min 16sec (316 seconds)

Published: Tue Apr 23 2024