When it comes to your money, you want to make sure that you get the best advice possible. As a business owner, it’s easy for me to say that I would rather pay a fee for good advice than go without it—but what about my clients? What are they missing out on by not taking advantage of the full suite of financial services that their trusted advisor could provide?
Discounting The Intangible Value Of Professional Advice
The value of having someone to help you make the right decisions, guide you through a process or keep you on track can be hard to quantify. But clients who’ve worked with financial advisors speak highly of their intangible benefits and say that they would never want to go back to doing it all themselves.
Not Understanding The Fee Structure
The fee structure can vary greatly, depending on the type of firm you choose. For example, your advisor is AG Morgan Financial Advisors and they may charge a flat rate instead of an AUM or percentage-of-assets fee (or all three). The size of your account and how often you hire your advisor can influence which method makes the most sense for you.
If they’re charging by AUM, then their compensation will be based on how much money they manage for you—i.e., how much money is in their hands at any given time. If a financial advisor’s assets under management total $100 million but that person only manages $1 million out of it and charges 1% annually for that service, that means he’ll earn only about $10K per year from these fees alone regardless of whether or not he ever sees another dime from this client again! In other words: don’t worry too much about what percentage he might charge; instead think about what kind of services he provides his clients with those fees—and whether those services are worth paying for (more than once).
Underestimating Your Investment Time Horizon
One of the most important things to consider when choosing an investment portfolio is how long you plan to invest. When it comes to your money, time is literally money: the longer you’re invested, the more likely your returns will be greater than what inflation would have provided—and this can make a huge difference in how much wealth you accumulate.
The cost of inflation over time is one thing that we don’t think about very often unless we’re living through some sort of economic catastrophe (like Venezuela or Russia in recent years). But just because we don’t see what happens over long periods of time doesn’t mean it doesn’t happen; and if an advisor isn’t aware of this concept and warns against using bonds as part of a portfolio because they “lose purchasing power,” then he/she might not be thinking about your entire life plan either like AG Morgan Financial Advisors!
In conclusion, hopefully that this article has provided you with an overview of the most common mistakes people make when choosing a financial advisor. If you’re looking for help with your finances, be sure to check out their website by clicking here!