We cannot stress enough on Adam Ginsberg’s
advice on hiring a qualified professional to manage your finances, or to at
least plan your investments for you to achieve your financial goals. As
suggested in some of our posts in the past, it’s better to hire a professional
simply because you will probably never be aware of the various ways that you
can invest your money safely, for it to grow steadily and for maximum profitability.
The next question or two that would
probably pop up in your mind would be ‘how do I know who is the right person to
advise me?’, or ‘what kind of a financial adviser do I need?’ Adam Ginsberg,
the highly acclaimed internet entrepreneurship coach and author of “The
Secrets of an Auction Millionaire”, offers a few pointers on how to choose
the right financial advisor and the right kind of financial advisor to suit
your investment needs.
Let’s talk about choosing the right kind of
advisor first. When it comes to hiring someone to manage your finances and
investments, you have two choices: hire a financial planner who will lay down
the blueprint to achieve your financial goals by telling you where you should
invest and how much, or hire someone who will not only plan your investments
but manage them too. The first kind will evaluate your current situation,
understand your financial goals in the short-, medium- and long term and formulate
an investment plan for you to follow. These professionals usually charge by the
hour, and you could always get your finances re-evaluated every few months, or
years to check if you are on track with your goals or if you’d want to reset
them. The second kind of finance professionals are the ones who do everything
for you from panning your investments to building up and managing your portfolio
in accordance with your pre-determined financial goals. These guys normally
charge an annual fee of a few thousand dollars, or a percentage of your
portfolio’s value to do the work for you. Walter
Updegrave has provided some great information on how and where to find a
good financial planner in his
article on CNN Money.com.
The next step is to choose the right kind
of financial planner. In short, there are money managers who will charge you a
fixed fee to manage your finances, and then there are those who will charge you
a fee and also get paid commissions on the various products that they make you
invest in. Adam says it’s a matter of personal choice what kind of an advisor
you’d want to go with: one who’ll charge you for what he does for you, but
without any vested interests, or one who will recommend his products but you
may end up paying less from your pocket. Again, Walter Updegrave has offered
some insightful
information on this subject as well, which you may find useful while
choosing your money manager.
Check out Adam’s blog and website for more useful tips and his eBay resources on how to make money online.
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