Broker Check
What Happens When You Engage with a Financial Advisor?

What Happens When You Engage with a Financial Advisor?

| June 23, 2021

Understand the fees and process of working with an advisor.

Navigating your many financial options isn’t an easy task. Using a financial advisor can provide you with clear and customized guidance based on your current situation and goals for the future, allowing you to develop a unique plan that fits your needs. How can an advisor bring value to you and what is the process like when you work with them?

How a financial advisor can help investors:

  • A second opinion on your current investments and ideas on what you could do differently
  • Clarity on how much you need to save for your goals and what options you have to get you there
  • Comparison on what types of retirement accounts to use for your family and business (IRA, Roth, 401(k), etc.)
  • What type of mortgage you should have, if you should pay it off, or refinance?
  • What type and how much insurance you need (this would include life insurance, long-term care insurance, disability, and sometimes property, casualty, and health insurance)?
  • What changes might improve your tax situation?
  • Planning guidance for transitioning into retirement (distribution and tax planning)
  • What level of investment risk is appropriate for different types of accounts you have and your risk tolerance?
  • Investment management so you can focus on living your life while they manage your money
  • Legacy planning for your family and desired wishes you want fulfilled after you are gone
  • Provide you with a physical roadmap to see if you will outlive your money

A trustworthy financial advisor will not make recommendations until they understand your goals. If you meet with someone who starts talking about a financial product right away, even if they call themselves a financial planner, they are more likely a financial salesperson.

How do advisors get paid?

You'll find that financial advisors’ fee structures vary. Typically, financial advisors charge fees in one of the following ways:

  • An hourly rate
  • A flat fee to complete a specific project
  • A quarterly or annual retainer fee
  • A fee charged as a percentage of assets that they manage on your behalf
  • Commissions from financial or insurance products you buy through them
  • A combination of fees and commissions

Always ask a financial advisor for a clear explanation of how they are compensated.

What happens when you use a financial advisor?

While the results are unique to every individual, the advisory process is typically similar when engaging with an advisor. When you meet with your advisor, the process usually goes as follows:

  1. A complimentary consultation where you get to know the advisor and their services, and the advisor gets to know you.
  2. An in-depth evaluation of your situation and objectives is next and the advisor will analyze your current investments, assets, and goals.
  3. A presentation and discussion of advisor recommendations for a financial plan tailored to your needs will come next.
  4. Implementation of the financial recommendations will happen if you agree to the recommendation and proposed services.
  5. The advisor continually monitors and adjusts your plan to achieve your desired goals. Most advisors will request at least an annual review with you and some may want to check in with you more frequently. This is also based on your comfort level and how often you want to meet with your advisor.

What can you expect from Brentwood Financial Advisors?

Over the years, we have found that a team approach can be an effective method to help clients who have a wide variety of needs as they maneuver through a complex financial-services world. No one strategy fits everyone, which is why every client gets our undivided attention—from planning to execution to follow-up.

Stop guessing about what could be in the way of your financial goals and start a plan of action.

CONTACT US to speak with an experienced financial advisor today. We can help you plan for the future you want.