What can’t (or shouldn’t) a financial adviser do?
As you probably already know, a financial advisor can help you make sound investments, manage your finances, and protect your hard-earned cash. However, you may not know that there are a fair few things they’re not qualified to help you with.
Tax planning and estate planning
More often than not, financial advisor’s can’t help you plan your taxes. This is a particular skill that usually a certified public account should help you with. Estate planning also tends to fall outside their scope. If this is something in this area you need help with, you’re better off hiring an attorney.
However, your financial advisor should be able to find and recommend you people who can handle these roles. That way, you can ensure the job is completed to a professional standard by someone you can trust.
Questions to ask a financial advisor before hiring them
Your financial advisor needs to be comfortable outsourcing tasks they’re not capable of doing. The only way to find this out is to vet them thoroughly before signing the dotted line.
Here a few questions that’ll help you get to the bottom of this:
- Do you have an established network of professionals you regularly work alongside?
- How did you find these professionals, and why do work with them?
- Do you get a commission by referring clients to these professionals?
Is your financial advisor a jack of all trades?
Communication is vital. Ask your advisor where they’re getting their advice from and what makes them qualified to undertake these tasks you’re unsure about. Honesty is always the best policy, and it’ll give you a good idea of whether you need to hire someone else’s expertise.