It is, without a doubt, a smart idea to get a professional to help you with your personal finances. A financial advisor will typically begin by asking you a series of questions in order to gain an understanding of your goals. You will have to estimate the sums that you will need for your retirement, your children’s education, and to meet your other responsibilities.
The financial advisor will then assist you in determining your financial requirements, devising a customised investment and savings plan, and constructing and managing an investment portfolio that will help you to achieve your goals. By engaging the services of a financial advisor, you can expect to maximise your returns while ensuring that your nest egg remains as safe as possible.
Of course, this service will come at a cost. You may be required to pay a certain percentage of your assets under management (AUM), which will be a yearly cost that will increase as your total investments grow, or else a flat, fixed fee, retainer, or hourly fee. And in addition to these fees, you may also be hit with other hidden fees and charges.
Before engaging a financial advisor, you must understand exactly how much the services they provide are going to cost you. The best way to get this information is to ask for it directly. Don’t sign on the dotted line until you are provided with a detailed, itemised breakdown of the charges that you will have to bear.
When you get this information, you should study it carefully and understand its implications. At times, it may be difficult to decipher the financial jargon that is used to explain how much you will be paying.
It is possible that certain hidden expenses could be deducted from your account. These may take the form of third-party fees, commissions, and management charges.
In fact, there are a wide variety of hidden fees that you should watch out for. Here we reveal some of the common hidden financial advisor fees and charges: