Warning Signs to Avoid a Financial Advisor Ottawa
Financial Advisor Ottawa can help manage your wealth, plan for retirement and navigate tax implications. However, finding an advisor who’s right for you requires a deep understanding of your options. If you spot warning signs like the ones below, it’s likely time to look for a better fit.
Cookie-cutter advice
If an advisor offers a pre-packaged solution without considering your specific financial situation and goals, it’s likely they aren’t committed to providing personalized service. You’ll also want to consider how they charge for their services: hourly, percentage of assets managed or a flat fee. A high or unclear fee structure could indicate that your advisor may be selling products that aren’t in line with your financial objectives.
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Account churning
If your advisor excessively buys and sells assets in your account, it’s known as “churning.” This is an illegal practice that can negatively impact your short- and long-term investment performance. It’s also a sign that they may be prioritizing their own commissions over your financial interests.
Conflict of interest
Some financial advisors are dually registered as broker-dealers and insurance agents, which can create a conflict of interest. To avoid this, choose a financial advisor that is a fiduciary or a certified financial planner (CFP) and who doesn’t sell insurance or securities. You can search for registered advisors in your area using SmartAsset’s free tool. You can also use this National Registration Search to find out if an advisor is licensed in your province or territory.…