The Questions You Should Ask Your Wealth Advisor

wealth advisor

Seventy-five percent of Americans say they wing it when it comes to financial planning. The majority live paycheck to paycheck and cannot cover an unexpected expense of $1,000. Many believe you must be a wealthy person set to seek financial advice. That is the reason people earning under $50,000 are less likely to consult with a wealth advisor than those making $150,000 or more a year.

All levels of income need financial planning for guidance on budgeting and building equity for a comfortable retirement. Over one-third of Americans will not have enough money to maintain their lifestyle in retirement.

A good advisor puts together a package meeting the client’s needs. They assist with financial planning, investment management, tax services, retirement planning, and more.

Building a good relationship with your wealth advisor is key to meeting your financial goals. Here are a few questions you should ask your wealth advisor.

How Long Have You Been a Wealth Manager?

The correct answer is not their educational achievements. This isn’t bad information to have, but you also want to know how long they have been advising high-asset clients as a wealth manager.

What Is Your Minimum Asset Requirement?

If you have a high net worth make sure the person is familiar with handling clients like you. Make sure they refer to their service as wealth management or themselves as a wealth advisor. This is a higher level of care than a financial advisor.

How Long Have Your Clients Been With You?

This is huge! If clients have only been there short-term, that indicates either a problem with the advisor’s services or they are new to the business. A lot of long-term clients indicate a good relationship and confidence in the advisor’s ability to manage their assets.

What Is Your Management Philosophy?

Active management means your money is put into the hands of money managers. Those people try to outperform the market by buying and selling equities on a frequent basis. This means you are paying high fees to have someone constantly buying and selling your assets.

Passive management provides you with equivalent or better returns at a low cost. The problem is passive management doesn’t allow for the best investment optimization.

Strategic management is a long-term method of relying on a broad set of principles to secure your wealth. The fees for strategic management are generally about 1/5 the cost for active management. This is the management level that provides you with the best control and returns.

How Often Do You Update My Financial Plan?

Some wealth managers create your plan, then leave it operating on its own. As your family and life change, so do your financial needs.

You want a wealth manager that has a set schedule for updating your plan. This is a time they review your asset allocation and your goals. They can make adjustments for changes in the market and your life.

Part of building a good relationship is jointly reviewing your account at least twice a year. Your wealth management advisor is handling your assets to eliminate worry about achieving long and short-term goals.

Stop being part of the 72% of Americans stressed about money and hire a wealth advisor today.

Where to Hire a Wealth Advisor

If you seek a Wilmington, NC wealth advisor, look no further than OmniStar Financial Group. Our fee-based services eliminate the biases of commission products. This allows us to be objective and make recommendations based on our client’s personal needs.

Contact us today using our online form or call (910) 319-7834. If you’re feeling stressed, request a relaxation moment with our 4-legged comfort officers, Graycie and Maggie.