Most high-net-worth individuals use the services of a professional financial advisory firm to manage their financial portfolios. Choosing the right firm can be a difficult choice as there may be many options to choose from. Firms may vary between large, international companies with thousands of clients and small private firms with a small selection of clients. For example, if you live in Illinois, you might find many options for firms specializing in asset management Chicago. The way financial consultants charge their clients can vary between firms, and this may play a role in clients choosing which firms to partner with, depending on their financial situation. It is best to understand the different fee structures they may implement before deciding on a financial planner or asset manager.
What does fee only mean?
A  fee only financial planner Chicago will charge a set rate for services provided to their clients. On the other hand, other firms may choose other payment methods, such as a commission-based structure. For those who are only looking to pay a certain amount for their financial advisory services, a fee-only financial planner in Chicago may be a good option. However, that’s not to say that commission-based fee structures are different. In fact, it has little to no effect on what the client pays the advisor directly. It simply means that if an advisor happens to sell a financial product affiliated with them, they will earn a commission from the products’ business. It’s an ideal structure for those operating in association with other companies in the finance industry or those operating independently.
What is fiduciary duty?
When a financial advisor is a fiduciary, they are ethically bound to make honest decisions that are in the best financial interests of their client’s behalf. This relates to advisors, who typically act as fiduciaries for their clients, helping them manage their financial affairs. A firm specializing in asset management in Chicago whose employees are fiduciaries should always act in good faith and ensure their clients have all relevant facts and information before making any financial decisions. To become a Certified Financial Fiduciary (CFF), candidates must have extensive knowledge and experience in their professions and participate in annual continued training. This helps to foster trust with clients and ensures that they are kept up to date with professional and ethical standards.
Choosing who to work with
When looking for a financial advisor to work with, you need to base it on criteria that focus more on the service they provide as a whole rather than on their fee structures. Although these fee structures may affect how much you spend with them, they don’t directly affect the quality of service they provide. This largely comes down to the advisor’s approach to their work. Although you do not necessarily to get good service, looking for someone who is a certified fiduciary may provide you the peace of mind you need to entrust an asset manager or financial advisor with your funds and personal information. It should be noted, however, that financial advisory professionals should always operate in the best interests of their clients.
Some good questions to ask your advisor
If you’re in the process of looking for an asset manager or a financial advisor to work with, then you should always look for one who suits specific criteria to ensure you’re aligned on your growth goals, points of interest, and communication strategy. Naturally, you’ll want to know where your money is, how you can access it, and have a direct point of contact to ascertain how well your portfolio or fund is performing. For this reason, you’ll need to establish an effective communication method that allows you to access the information you need as and when but also allows for precise, professional boundaries to be set between yourself and your advisor. Some of the points you can speak to an advisor about before entering into any agreement with them include:
- Their specialist investment areas
- Their opinions on specific markets or on markets you’re interested in.
- Your goals for financial growth and whether or not they think it’s possible
- Their qualifications and experience
- References from some of their previous clients
With the above information, you can make an informed decision about whether or not the advisor you’re speaking with is the right match for you and your assets.
