Are you curious about how to navigate your financial journey with confidence? In this webinar, Tina Mistry, CFP®, and AJ Flores, CFP®, share expert insights to help you take charge of your finances. Whether you’re saving for the future, planning for retirement, or just getting started and are seeking an advisor, this session is packed with actionable advice tailored to your needs.

Transcript: Introduction

• Thank you all for joining today. My colleague AJ and I are excited to present this webinar.
• My name is Tina Mistry, and I’m the CEO and Senior Financial Advisor here at Portfolio Advisors (PA).
• AJ Flores, a Lead Advisor at PA, is also joining me.
• This is the first in a series of webinars we will be hosting over the next 12 months. Today’s topic is about What People Need to Know When Seeking Financial Advice.

Housekeeping

• The webinar is being recorded, and your consent to be part of the recording is implied by your participation.
• We have everyone on mute to ensure a smooth recording, but please feel free to use the chat box for questions. Our marketing director, Andrew, will be monitoring the chat and passing on questions.

Webinar Objectives

Tina:

We aim to empower people through education and make the process of seeking financial advice less intimidating.

Today, we will cover three main topics:

1. What to do before seeking financial advice.
2. What to consider when seeking financial advice.
3. Red flags to look out for when choosing a financial professional.

AJ’s Introduction to Seeking Financial Advice

AJ:

• Seeking financial advice can be a vulnerable and sensitive experience. It involves trusting someone with personal and financial information, which is a big step.
• People often come to financial advisors for specific pain points, such as understanding employment benefits or managing a sudden windfall.
• Before seeking advice, it helps to have an idea of your financial priorities and be prepared with some basic information (e.g., pay stubs, fixed expenses, and liabilities).

Types of Services Financial Advisors Provide

AJ:

• Financial advice isn’t just about investments; it covers a broad range of topics like retirement planning, estate planning, tax management, and risk management (e.g., insurance).
• Financial professionals can act as accountability partners or coaches, providing objective advice and helping you avoid financial pitfalls.
• Comprehensive services include retirement and estate planning, managing cash flow, and coordinating with other professionals like CPAs and attorneys.

What to Consider When Seeking Financial Advice

Tina:

• Credentials & Experience: Look for professionals with certifications like Certified Financial Planners (CFP), Chartered Financial Consultants (ChFC), or Chartered Financial Analysts (CFA). These certifications require rigorous education and exams.
• Background Checks: It’s important to research financial professionals to ensure they are licensed and have a clean disciplinary record. Websites like FINRA BrokerCheck and the SEC provide helpful tools for this.
• Specialized Knowledge: Some financial professionals specialize in certain demographics or financial issues (e.g., pre-retirees, business owners, or divorced clients). It’s worth finding someone with experience relevant to your situation.
• Fee Structures: Understand how the advisor is compensated—whether they are fee-only, commission-based, or fee-based with both commissions and fees. Fee-only structures typically promote long-term client relationships.

Understanding Financial Advisor Compensation

Tina:

• Fee-Only vs. Commission-Based: Advisors can be compensated by fees (e.g., a percentage of assets under management or an hourly rate) or commissions (based on products sold).
• Types of Fees: Fee-only firms may charge hourly fees or a percentage of assets under management. This structure aligns the advisor’s interests with the client’s, as they are compensated based on portfolio growth.
• Fee-Based Firms: These firms may charge both fees and commissions, which requires careful consideration to ensure the advisor’s interests align with yours.

Red Flags to Watch Out For

AJ:

• Conflicts of Interest: Be wary if an advisor has a financial incentive to sell certain products. Ask about conflicts of interest upfront.
• Fiduciary Standard: A fiduciary is legally obligated to act in the client’s best interests. Ask if the advisor is held to this standard, as it ensures they prioritize your needs over their own.
• High-Pressure Sales Tactics: If an advisor uses high-pressure tactics or guarantees returns, that’s a major red flag. No investment is guaranteed.
• Lack of Transparency: Advisors who are not upfront about their fees or who fail to provide clear information should be questioned.

Additional Resources and Questions

Tina:

• We are offering a series of helpful resources, including a list of questions to ask when interviewing a financial advisor and a list of documents to bring to the first meeting.
• Questions to Ask:
  • What are your credentials and experience?
  • How often do you communicate with clients?
  • What is your investment philosophy?
  • What is your fee structure?
  • Are you a fiduciary?
• Documents to Bring: It’s helpful to bring information about your income, assets, liabilities, estate planning documents, and retirement plans.

Closing Remarks and Upcoming Webinars

Tina:

• Thank you again for attending today’s webinar.
• Our next webinar will be on January 28th, focusing on Social Security and dispelling myths about it.
• We also have a tax planning webinar scheduled for March 25th.
• If you have suggestions for future webinar topics or want to schedule a one-on-one discussion, feel free to reach out to us directly.

AJ:

We’re happy to answer any further questions or provide additional guidance as needed. Thanks again for your participation!

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