How to find the right investment advisor near you

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What Is an Investment Advisor?

An investment advisor is an individual or company that offers advice on investments for a fee. The term itself — “investment advisor” — is a legal term that appears in the Investment Advisers Act of 1940. It may be spelled either “advisor” or “adviser.”

Investment advisors might also be known as asset managers, investment counselors, investment managers, portfolio managers, or wealth managers. Investment advisor representatives are people who work for and offer advice on behalf of registered investment advisors (RIAs).

What Is a Registered Investment Advisor (RIA)?

A registered investment advisor, or RIA, is a financial firm that advises clients about investing in securities, and is registered with the Securities and Exchange Commission (SEC), or other financial regulator. While you may think of RIAs as people, an RIA is actually a company, and an investment advisor representative (IAR) is a financial professional who works for the RIA.

That said, an RIA might be a large financial planning firm, or it could be a single financial professional operating their own RIA.

An RIA has a fiduciary duty to its clients, which means they must put their clients’ interests above their own. The SEC describes this as “undivided loyalty.” This is different from non-RIA companies whose advisors are often held only to a suitability standard, meaning their recommendations must be suitable for a client’s situation. Under a suitability standard, an advisor might sell a client products that are suitable for their portfolio but which also result in a sales commission for the advisor.

RIAs generally offer a range of investment advice, from your portfolio mix to your retirement and estate planning.

What’s Required to Become a Registered Investment Advisor?

The following steps are required to become a registered investment advisor (RIA).

  • Pass the Series 65 exam, or the Uniform Investment Adviser Law Exam, which is administered by the Financial Industry Regulatory Authority (FINRA). Some states waive the requirement for this exam if applicants already hold an advanced certification like the CFP® (CERTIFIED FINANCIAL PLANNER™) or CFA (Chartered Financial Analyst).
  • Register with the state or SEC. If an RIA has $100 million in assets under management (AUM), they must register with the SEC — though there are sometimes exceptions to this requirement. If they hold less in AUM, they must register with the state of their principal place of business. This requires filing Form ADV.
  • Set up the business. These steps require making a variety of decisions about company legal structure, compliance, logistics and operations, insurance, and policies and procedures.

How to Choose an Investment Advisor

Finding the right investment advisor is about finding the right fit for you. While personal preference plays a part, there are a variety of other things you might consider when you’re searching:

Start Local

Look to helpful databases of financial professionals that can help you pinpoint some advisors in your area. Here are a few to consider:

  • Financial Planning Association. Advisors in this network are CERTIFIED FINANCIAL PLANNERS™ (CFP®s) and you can search by location, area of specialty, how they’re paid and any asset minimums that may exist.
  • National Association of Personal Financial Advisors. All advisors in this database are fee-only financial planners, meaning they receive no commissions for selling products.
  • Garrett Planning Network. All advisors in this network charge hourly.

Get Referrals

One of the best ways to find a financial professional is to ask friends, family, and acquaintances if they’ve worked with someone they can recommend. While there are ways to build wealth at any age, it may be beneficial to ask people who are in a similar financial situation or stage of life. For instance, if you’re relatively young with a lot of debt and very little savings, you may not want the same investment advisor who’s working with wealthy retirees.

Ask About Credentials

Ask investment advisors what certifications they have, what was required to get the certification, and whether any ongoing education is necessary to keep it. Some certifications require thousands of hours of professional experience or passing a rigorous exam, while others may only require a few hours of classroom time.

Other certifications are geared toward investors at a specific life stage or with specific questions. The Retirement Income Certified Professional (RIPC) certification, for instance, focuses on retirement financial planning. Those with a Certified Public Accountant (CPA) certification are probably good sources for tax planning.

Check Complaint History

Depending on who oversees the advisor or the firm, you should be able to check whether there are complaints on record. If FINRA provides oversight, you can research them on FINRA’s BrokerCheck tool. If the SEC oversees them, the SEC has an investment advisor search feature to find information on the advisor and the company. Remember: One complaint might not be a red flag, but multiple complaints might give you pause.

Find Out About Fees

Investment advisors may be paid, or charge fees, several different ways. They may charge a percentage of assets under management, meaning that the fee will depend on the assets they’re managing for you. For example, if the fee is 1% of assets under management and you’re having them manage $500,000, you’d pay $5,000 annually for their services.

Others may charge an hourly fee or a flat project fee for specific services. There are also advisors that are paid commissions from the products that they sell to clients. It’s important to understand how an investment advisor makes money and how much you’ll pay in fees each year, and then decide what you’re comfortable with.

Get Details on Their Work Style

Communication and working style may be just as important as credentials and expertise. For instance, how often do they want to meet with you? Would you be working with them directly or with a wider team of people? Do they like to communicate via phone call, email, or text? This is something else to consider.

Take a Test Drive

Many advisors will offer a phone consultation or in-person visit to see if you’re a good fit. You may want to take them up on it. Finding the right investment advisor is as much a matter of chemistry as credentials.

Questions to Ask an Investment Advisor Before Hiring Them

It can be a good idea to find out as much as possible about an investment advisor so you can make an informed decision. Here’s a list of questions you might want to ask:

  • What are your qualifications?
  • What type of clients do you typically work with?
  • Are you a fiduciary?
  • How are you paid? And how much will I be charged?
  • Do you have any minimum asset requirements?
  • Will you work with me, or will members of your team work with me?
  • How (and how often) do you prefer to communicate? (Phone, email, text?)
  • How often will we meet?
  • What’s your investment philosophy?
  • What services do you provide for your clients?
  • How do you quantify success?
  • Why would your clients say they like working with you?

The Takeaway

An investment advisor can help you think about investing for the future, plan to save enough for all your goals, and understand how to get it all done. Finding one isn’t hard, but it does take time and some research to connect with an investment advisor that meets your expectations and feels like a good match.

With that in mind, getting the right advice can be critical even before you start investing. Someone with experience in the markets helping guide you can be invaluable.

This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Liz Young is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Her ADV 2B is available at www.sofi.com/legal/adv.

16 smart, simple ways to save money right now

16 smart, simple ways to save money right now

Whether putting money away for a rainy day or for retirement, good savings habits can prepare you for emergencies and life changes. While it may seem like a struggle, rest assured there are countless ways to build up your savings. It starts with trimming down the expenses that tend to take the biggest bite of your budget, from groceries to gas. We’ll walk you through 16 tips to cut back in each of these categories.

For help with your personal finances, consider working with a fiduciary financial advisor. Find an advisor who serves your area today (Sponsored).

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You can really maximize your money simply by selecting the right credit card to swipe at the register. Certain credit cards offer lucrative rewards for grocery store purchases, and many don’t have annual fees. Rewards can climb up to 3% cash back at supermarkets, which can add up during your weekly grocery runs.

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Gone are the days of sifting through pages of flyers and clipping coupons. Instead, check out Flipp, an app that allows you to browse through thousands of weekly ads and compare prices among retailers to make sure you’re really getting your best deal.

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Higher priced items or items with a high markup tend to be placed in the “bulls-eye zone,” the second and third shelves from the top. Look at below or above eye-level shelves for lower prices, whether it’s bulk items or store-brand options.

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In-season fruits and veggies not only tend to taste better, but they are also often less expensive than off-season produce. Check out the USDA for a guide to in-season produce to help you shave money off your grocery bill.

Steve Debenport

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If you’re in the market to buy a house, keep in mind that rates and fees for mortgages vary widely. Just like you’ll take your time hunting for the perfect house, you should also be comparison shopping with lenders. LendingTree’s mortgage comparison tool can help you get started.

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While shorter-term mortgage loans typically come with larger monthly payments, they usually have lower interest rates, which means you’ll pay less over the life of the loan because the repayment period isn’t as long. Take the time to crunch the numbers to see if this option makes sense for you.

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There are various local and state programs designed to help residents shoulder the cost of buying a home. These can range from special down payment assistance loans to matching savings programs that help you save on homeownership.

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Before you commit to a lender, make sure to negotiate to get your best offer. You can request a lower rate, the reduction or waiving of certain fees or a rate lock (meaning once you agree on a rate, that rate won’t change between the offer and closing).

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Similar to how certain credit cards can maximize savings on groceries, other cards help you save on fuel, so be selective when gassing up. Rewards can range from cash back to car rental insurance.

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A number of large grocery chains, including Kroger and Hy-Vee, have free programs that reward shoppers with points they can use to pay for fuel at partner gas stations. For example, Shell has partnered with numerous grocery store chains, giving customers that shop at those chains discounts on gas when they purchase certain products with a special members card.

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Apps like GasBuddy compare fuel prices near you, so you can make sure you’re getting the best price at the pump. Those extra savings can add up over time, especially if you put in a lot of mileage.

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Properly inflated tires get better gas mileage and can end up saving you hundreds of dollars a year on fuel.

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Professional energy audits determine how energy is being used in your home and can outline steps to make your home more energy efficient, which will lower your electric bill. You can get relatively inexpensive professional energy audits, or you can do a DIY version.

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Not only are LED bulbs better for the environment, but they are known to use up to 75% less energy than regular light bulbs and last much longer, resulting in a lower electric bill.

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Be sure to unplug appliances when you are not using them. These appliances can account for 5% to 10% of residential energy use, resulting in bigger bills.

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Just like you can negotiate for a lower rate on your mortgage, you can negotiate your utility bills. Contact your utility provider and ask them for a better rate, which could result in savings.

Need help managing your finances?

Learn how you can start saving money right now. 

Additionally, a financial advisor can help you work out the details of your personal finances. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.(Sponsored)

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While all of the tips above can help you save money fast, the only way you can really make strides in your savings is if you carve out a place for it in your budget.

One way to make space for saving in your budget is to follow the 50/30/20 budgeting framework. With the 50/30/20 budget, the idea is that you will dedicate 50% of your monthly income toward essentials, 30% toward “wants” and 20% toward your savings. If you want to save more aggressively, you can flip the 30% and the 20% categories.

To incorporate savings more seamlessly into your everyday life, consider automating it. Many banks and credit unions offer features that allow you to automatically transfer a set amount of money from your checking account to your savings account on a cadence of your choosing. You can also look out for high-yield savings accounts to earn more on your savings.

At the end of the day, the most important aspect of saving money is to get started and then stick with it.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

This article originally appeared on MagnifyMoney.com and was syndicated by MediaFeed.org.

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