Jesse Purves – Importance of good Financial Services
Posted on September 15, 2011, by admin, under Financial Services.
If you are looking for a financial adviser, it is important that you understand what makes a good financial services firm. Investors need to have a level of comfort with a new financial adviser and much of this will come from the company that they work for. Investors should carefully review a number of characteristics of financial services firms before they agree to hire them to create their financial plan.
One-on-one service
Those who are interested in seeking the help of a financial services firm should make sure that they are not going to be in a “pool” of investors. For example, oftentimes a client of a mutual fund will have what is called a “house account” meaning that in order to talk to a licensed financial services provider they are going to be connected with the first person available.
Jesse Purves opines, when hiring a financial services provider, make sure that you have a well-established financial services provider who is committed to providing you with one-on-one service. When you call you will be directed to the adviser or to their sales assistant. This method will help an investor be more comfortable with their adviser and will generally result in a better financial plan.
Fee structures
Financial advisers are paid by the clients for managing their financial accounts. Investors should ask about the policies of the financial services firm before they sign a contract. Some financial services professionals work on a commission basis while others work on a percentage of the managed portfolio. This is important, as it will have a significant impact on what professional financial services will cost the investor.
Jesse Purves says, ask your financial services professional about how their fees are structured. For the most part, financial services fees are based on a number of factors including how complex your plan is, how frequently it may need to be modified and the amount of assets that are under management. Annual fees, wire transfer fees, transaction fees and other fees are a common part of all financial plans. Make sure that your financial services professional provides you with a complete schedule of fees so that you know what to expect.
Product offerings
One important aspect of a good financial services firm is the number of products that they are able to offer. Many investors may only want to use a small number of products; however, it is helpful if the company offers a full menu of services. Many high-wealth individuals prefer to invest in products such as annuities, insurance policies or other fixed-dollar investments. Other investors may need mutual funds, stocks and other equity products for their portfolio.
Hiring a financial services company that offers a broad range of products is in the best interest of the investor. This is because over time, their investment goals may change, they may want to go into more secure investments or they may be willing to accept more risk. Financial services firms should be willing and able to offer you all of the products that you may need to secure your financial future.
Hiring a financial services firm is a big decision and can have a significant impact on your financial future. Before you make a final decision, make sure that the financial services firm has all of the services that you need and that the financial adviser that will be working for you is available, ready to answer your questions and has a complete understanding of your financial goals.
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