If you had a toothache, you’d see a dentist, right? If you broke your leg, you’d go to the hospital. These are the kinds of things that we automatically entrust to the experts. Why, then, do so many of us struggle with the idea of entrusting our finances to a financial planner? The truth is, most of us are not experts in the area of investing in the future, so the help of a qualified, experienced financial security advisor like Robert Yancovitch can be invaluable.
Whether you have recently inherited a large sum of money, have started earning more money at your job or simply want to sock away some money for a rainy day, a financial security advisor can help you achieve your financial goals. Hiring a financial planner can be one of the best investments you’ll ever make.
If you’ve ever asked yourself whether you need a financial security advisor, you probably do. Even if you don’t have a large amount of money to manage, you can benefit from the services of a financial security advisor. What once was a service utilized only by the very wealthy is now something that everyone can benefit from.
It’s important to understand the different types of professional designations that people in the financial field can have, what they mean, and how those professionals can help you.
CFP: Certified financial security advisors have passed a standardized test and demonstrated their knowledge and understanding of various topics, including insurance, investments, taxation, employee benefits, retirement and estate planning. They also must meet requirements relating to professional ethics.
Chartered financial consultants pass exams in finance and investing
Chartered life underwriters (CLUs) pass exams on insurance-related topics
Chartered financial analysts pass exams in economics, financial accounting, securities and other topics.
This may seem intimidating, but for most people’s financial needs and investments, a Certified Financial Planner will do the job beautifully.
When looking for a financial security advisor, it’s important to note that there are four different categories, based on how they will charge you for their services. These categories are: Fee-only, fee-plus-commission, fee offset and commission only services.
Basically, a CFP who works on commission earns that commission based on the financial products he sells you, such as various types of insurance, mutual funds, etc. Some financial security advisors will charge a fee on top of that commission, others won’t. Others will offset the commissions they earn against their (flat) fee, and some others work on a commission-only basis. Those CFPs that charge only a fee (no commission) may do so based on an hourly rate, a flat fee for an all-in plan, or by way of an annual retainer. Some CFPs who opt for this fee structure do so because they are not registered to sell certain financial products.
So, if you are wondering whether you need a financial security advisor to help manage your money, you probably do. As long as you are dealing with a trustworthy, reputable and experienced financial advisor such as Robert Yancovitch, you really have nothing to lose.