If you’re unsure about the roles which Patrick Dwyer Financial Advisor plays, continue reading to discover 7 facts about financial advisors, which will help you understand how financial advisors like Patrick Dwyer operate.
7 Facts About Financial Advisors:
1. Financial Advisors offer different amounts of experience and not all financial advisors offer industry credentials
You may be surprised to hear that there are currently no regulations which stipulate who can call themselves a financial advisor and who can’t. Currently any individual can market themselves as a professional financial advisor. Even those who have no financial background. However, many financial advisors do boast impressive credentials.
2. Each financial advisor will offer slightly different services
While some financial advisors work across the board and can assist you with your long term savings, building an investment portfolio and diversifying your investment risk, other financial advisors may focus primarily on one are of finances such as taxes or investments. So potential clients should choose financial advisors whose services suit their preferences.
3. Most financial advisors pledge to act in your best interests
The vast majority of professional, experienced financial planners have pledged to protect their clients best interests by signing up to the financial planning honor system. However, keep in mind that there is no legal obligation for financial planners to keep their pledges to clients.
4. Financial advisors can choose how they would prefer to be paid
While some financial planners charge a flat hourly rate for their financial services, others work for flat fee or work off commission.
Before hiring a financial advisor be sure to get your hands on a copy of their Form ADV Part II, which will outline their fees and investment strategies. If you’re uncomfortable with asking an advisor for such a
form, simply obtain it from the SEC instead.
5. Financial advisors each have varying strategies on how to increase your passive income
Each financial advisor, will have a different strategy on making money and increasing your passive income. As examples, some financial advisors assist their clients create wealth by selecting stocks, while other financial advisors may be researchers who are adept at choosing managed funds to invest in. Potential clients should also make sure that they choose a financial advisor whose money making strategies, suit the level of risk that they’re comfortable with.
6. Financial advisors aren’t as bothered by market volatility as your average Joe Blogs
Average investors often fret unnecessarily about small drops in share prices, whereas most financial advisors understand the market can fluctuate within 10% most years. So there’s no point in getting freaked out by small loses as in the long term, their clients should still double their initial investment.
7. Financial advisors often see a market crash as the idea time to make sizeable investments
Instead of getting intimidated by a market crash, financial advisors urge their clients to see a stock market crash as a huge opportunity to purchase valuable stocks at a discounted rate.
In conclusion, after reading the 7 facts about financial advisors like Patrick Dwyer listed above, you should have a far better understanding on the roles which financial advisors play.