Tag Archive for: financial

You finally have a stable stream of income or fairly high paying job. You’re earning enough money for right now. You’re working hard and are now thinking about being set up for an early and comfortable retirement.

Investing into business could be the thing.

Yet, your mind is full of ideas but doesn’t what to invest into. Of course, you are taking consideration that you don’t want to lose all your hard earned money.

Thus, it’s time to hire a financial advisor.

Now choosing the right financial advisor is vitally important to your financial well-being. The stakes are high when you open your finances to a third party, so do your due diligence…

As this is someone you will be trusting with your investments, and your money for retirement in most cases which makes it a high-stakes decision. It’s a decision that you need to think over a lot of times as you require someone who you can trust with your money.

Taken into account that there are a lot of choices in the market with different expertise and qualifications, so who do you want to choose?

Let us help you narrow down the search when choosing the right financial advisor – here’s the checklist for you to go through before hiring one.

1. Run a Background Check on the Financial Advisor

Request for Background Check

Do a background check and make sure that they do not have a criminal record. It is better to be careful as you do not want to hire someone who had cases filed against them – especially if they are financially related.

2. Review Qualifications

“As a consumer, you should understand what qualifies the person advising you to give such advice, and how much work it took to allow them the ability to do so,”
– Kelly Campbell, founder of Campbell Wealth Management.

How do you make sense of the alphabet soup in financial advisor designations?

Do your homework, and find out which titles, such as certified financial planner, offer the kind of expertise you’re looking for. Many designations sound impressive, but they don’t require more than a couple of two-hour classes.

3. Ask to See Evidence of Past Client Successes

quarterly reports and proof of successes

Ask the adviser about their typical clients. This will help you judge whether they are experienced in dealing with people who have similar issues and goals to you.

For example, are the adviser’s other clients planning for retirement or are they young families wanting to save for their or their children’s education?

Ask to see an example of a quarterly report.

Ask the advisor to provide you with an example of a client’s quarterly report with the name redacted. Ask the advisor to walk you through each line, explaining the rationale behind the asset mix and the results.

If you were thinking of hiring a caterer, you’d try the food first, right? Along the same lines, it makes sense for an investor to see an example of a financial advisor’s work before hiring him or her.

4. Read the Entire Contract

Financial Advisor and Business Contract

Before engaging yourself in a contract of agreement, you should always have the understanding of every clause in the document.

Read the fine print…

Examining such clauses is like focusing on a prenuptial agreement. A splash of reality hits you the moment you are ready to choose someone you think will be a good fit.

Does the advisor include a mandatory arbitration clause in his or her contract?

Read the contract to find out if the advisor indicates if you’re willing to invest in speculative investments, for example. If you sign that piece of paper, you may not have a defense if you pursue arbitration for mismanagement of your portfolio.

Remember, anything can happen especially when it involves money matters so you should always have some reference to support your claims if ever you get to the point that you will pursue legal actions.

It’s best if you consult a lawyer to proof read the entire contract and to fully explain to you all the terms and conditions that you are about to sign.

5. Ask for an Fiduciary Pledge

A financial advisor takes a fiduciary pledge where they agree to act in the client’s best interest at all times.

A registered investment advisor, who is held to a “fiduciary standard of care”, looks after the assets of another person on that person’s behalf. They are fully transparent and required to disclose any potential conflicts of interest.

6. Consider the Pay Structure

In a perfect world, the way your financial advisor is compensated wouldn’t affect the quality of advice you receive. But since that’s not a reality, us as investors must understand how money motivates advisors.

Buyer with Cash and Piggy Money BankThe pay structure of financial advisors can be either be fee-based or commission based.

Commission based financial advisors can have less radical motives to drive a certain fund if they are getting a cut from that investment.

Advisors paid on commission must meet a suitability standard, meaning they must reasonably believe any recommendations made are suitable in terms of the client’s financial needs, objectives and unique circumstances.

Fee-based advisors have their own motives too if their earning a percentage of your annual assets. They might not be willing to advise you to have a better investment moves that would affect their fee to decline.

So really the difference between these two pay structures is the motives of the advisor that’s earning from the investments they make on behave of their client(s).

It would best to consider advisors who charge on an hourly rate if you are still starting out and you still have less assets. They are those who are likely to take care of your finances as they are still trying to impress you with how they handle in helping you invest your money properly.

7. Find an Attentive Advisor

Attentive Financial Advisor

In the world of work, providing professional service should be accompanied by good customer service trait. Of course, you wanted to have a financial advisor who attends to your needs.

One who picks up your calls, return our emails, and keeps you updated with your financial activities.

If you have this kind of advisor, they probably would try to gain your trust and so you would be very happy to keep them for a long term basis.

8. Make Sure You Understand Their Language

In a financial industry, there are a lot of terminologies and concepts that are confusing. It is the role of the financial advisor to explain to you those terms and make you understand the situation.

If this role is not performed well by your financial advisor, it is best if you try another one who can do this for you.

9. Determine if the Advisor Can Speak Your Language.

Communicate with Multiple Languages

Investment communication is riddled with confusing terms, big words and complicated concepts. It’s your financial advisor’s job to translate those ideas and terms into language that is both understandable and relevant to your situation.

Do you want an advisor to use financial jargon, such as “secular trend” and “organic growth” without explaining what the terms mean?

If an financial advisor isn’t willing break down these terms for you, it may be a sign you should keep searching for a better fit.

10. Will they Review your Tax Return?

Tax rates are set to go higher. A planner that looks beyond the financial tools and evaluates their effects on tax returns is a smart idea. Then it’s a net-return, not gross-return focus.

Take a Closer Look - Tax Report

An adviser should review your tax return at least annually. This is necessary prior to making informed recommendations on tax subjects.

11. Focuses on more than 1 Investment Product

Many advisers focus on one class of financial tool whether it is banking, insurance, or investment assets.

A comprehensive planner uses a variety of financial products, when warranted. It allows the planning to determine the necessary tools to construct your financial house.

Financial Advisor - Investment Products

There is not a one-size-fits-all in a holistic approach. Watch out for a salesperson who recommends the same solution for every client.

If your recommended portfolio is made up of just one type of investment, for example all mutual funds or all annuities…run. Nothing screams “product salesman” more than a financial adviser that offers the same advice to all clients.

12. Do They See Your Big Picture?

Get Setup for Early Retirement
Comprehensive planning is more than just maximizing investments.

It is coordinating your investment portfolio with other important factors such as your overall income plan, your tax plan, and your estate planning that will ultimately decide your best approach to retirement planning.

Find a comprehensive retirement planner who can design the best unique plan for your situation and retire securely. They must know what you want to be doing when it comes to your golden years.

In the end, it is still up to your determination to find the best financial advisor to help you with your financial investments.

You need to know what you want, identify the core values you wanted your financial advisor to possess. Always keep in mind that you need to consider the quality of performance of the advisor that you will hire. If they cannot meet what you expect, try to look for another one.

Avoid settling for someone just because they have low cost. You might want to extend your budget for their fee if you want to get the best of what you want.

Remember, aim for those who are efficient and effective with their job.

online strategy sessions banner

“The journey of a thousand miles begins with one step.”
– Lao Tzu

If you haven’t already. It’s now your turn to take the necessary baby steps towards business success.

While you may have a large-scale idea for a new business, sometimes it’s better to take just a small part of your plan and focus on starting your business on a small level.

If this is your first business, you may want to target an endeavor that will help you build skills without wiping out your nest egg completely.

A business that can succeed on a small level gives you great training wheels for building the experience, knowledge, and competency you’ll need to take your company to the next level.

Taking Baby Steps is the Way to Go

Below are several reasons why it might be your best bet to start small for business success.

Reason’s Why…

1. You’ll Save Money

Starting with a narrow scope of business means you can run it out of your extra bedroom or den. You won’t have to rent office space or furnish a suite.

There are even tax incentives or deductions you can take to save money as you build your business on the small side. If you do need specialized space for your endeavor, you can investigate subleasing space from other entrepreneurs, which reduces costs.
rolling in money lady excited

2. You’ll Need Less Capital to Get Started

Bootstrapping is an effective strategy that allows you to grow into your business and keep initial financial outlays on the low end.

Instead of stressing over technology requirements and phone systems, you can concentrate on creating your sales funnel or refining your product. The fancy phone system can come later (if at all). A lean business structure keeps you flexible and focused.

3. Learn as You Go

When you base your business on a hobby, you can start by making a handful of products, selling them, then growing when you’re ready.

As your business takes off, you can educate yourself in other areas of running a business, creating a formal business structure, managing employees, and meeting regulatory requirements.
Dirty Words

4. You Can Start Today

If you set your sights on a small enterprise, the barriers are lower and you can get going more quickly. You don’t need a huge infrastructure, massive staff, or complete line of products to get started.
Baby Steps to online successYou Have NO Excuse for not Starting Your Business Today!

By doing everything yourself to start off with, you’ll learn all that’s needed to keep your company going. Of course, it’s great to hire out those things that you are not able to do, but if you have direct know-how those experiences inform your executive decisions down the road.

It will also help you make better decisions that impact your customers. While financial investment is necessary to building a business, your sweat equity is just as necessary to growing your endeavor.

6. It’s Simpler to Run

Smaller companies are lean machines and often have higher profit margins because they are simpler to run. There are fewer costs associated with overhead and administrative requirements with a small-scale business, and you can reassess market changes frequently and pivot when necessary.

When big jobs come through, you can team with other small companies or hire contractors to deal with the workflow if it’s more than you can handle.

Slow and steady wins the race.

Start small to test the market. Grow with intention. Sample the cheese before you bet the farm on your idea. When it comes to small business success, the truth is: scaled-down, slower growth companies do just as well as their big sisters.

Baby Steps to Business Success Requires Asking Yourself the Following Questions:

At the end of all of your blood, sweat and tears, what is it that you want to be said about how you used your life and your business to impact the lives of others?

Think about it this way.

  • What is the story that you want other’s to tell about your business?
  • What is the story that that you will tell others to help them “get” what it is that you do, and what it is that so special about your business that warrants their attention.
The Story is all that your customers will take away from you really in the end.

StorytellingSure, they may walk away with some kind of product or service offering.

  • But over time, that product or service offering will fade out of existence.
  • And then…all that they are left with is the story, the memories of what it is that your business did for them

Taking baby steps to business success requires that you take the time to figure out the story of your business, it’s impact, and how it operates to have a defined impact in the lives of your targeted customer audience.

  • Story is a powerful tool in helping you to figure out exactly what it is that you want your business to do, and how you want it to grow.
  • Whether it was good, bad, or ugly…your customers will use the power of story to tell others about the interactions with you.

When Starting Your Business…

  • Know your customer’s wants, needs, desires and frustrations inside and out.
  • Then fervently design your business to meet and exceed their expectations…and then allow them to walk away with a story and an experience that strengthens their life.

This strategy is useful in almost every area of life, and when trying to achieve nearly any goal.

Just work towards one mini-victory at a time and make sure you celebrate each achievement in some small way—a little success goes a long way in propelling us to the finish line.

Here’s to your success in designing a business that customers will absolutely crave!

We have found an all-in-one business platform. You’re given your own website and back office to help you run the business. Plus you get capture pages and training to get the business off and running.
Check it OutEvery time we try to leap across multiple steps in building our business, we land on our butts. If we choose to take slow and steady baby steps and inch along, that way we’ve make good progress.

Usually, when we try to leap, not only do we fail in what we’ve trying to do. But also wasted weeks or months when we could have been taking the steady route.

Raising a child is like building a business (That’s what Dave tells me).

With my (Dave’s) kids, while they were in primary/ elementary school my wife and I (Dave) would have looked to have them got taught calculus, but it’s not realistic. Or while my (Dave’s) kids were in high school, we might wished they skipped TAFE/ college and went straight to a high paying job but it simply doesn’t work that way.


When Building Our Businesses, Why Does the Logic about Parenting get Thrown out the Window?

Imagine These Scenarios…

You can work on a partnership that might grow your sales a hundred times.
You could work on about a dozen small opportunities. That each could grow your business two or three times, and maybe more over time if they gain traction.

What Would You Do?
We know we’ve fallen for the temptation of the big opportunity several times. Most instances, when that happened we wasted months and didn’t get very far at all. Something went wrong.

With some grey hair (Dave), we’ve learnt that exploring many smaller things works better in the long run.

We think the temptation to pursue the “Big Thing” is a part of our business culture. That’s where we celebrate unicorns, and encourage entrepreneurs to create the next Apple or even Facebook.

Sadly, this obsession with quick growth and grandeur often can lead to disaster.

Remember, when a tortoise and a hare are racing, often the tortoise wins the race.

We are here to help. If you want any help in your Entrepreneurship endeavors, just Messenger us (Private Message Us) at our Facebook Messenger link – m.me/EasyOnlineBizSolutions

Get ACCESS to the best FREE tools and resources for entrepreneurs and business people by going to our tools and resource page or Subscribing to our Entrepreneur Newsletter.

Talk Soon,
Nicky & Dave