Key Points
- The article provides tips for finding a financial advisor in Denver, Colorado.
- The author suggests that individuals should first identify their financial goals and needs before seeking out a financial advisor.
- The article highlights the importance of working with a fiduciary financial advisor, who is legally obligated to act in the best interests of their clients.
- The author recommends that individuals look for a financial advisor who has experience working with clients in similar financial situations or with similar financial goals.
- The article suggests that individuals should research potential financial advisors by reading reviews, checking credentials, and verifying their registration with regulatory organizations.
Introduction
There are many financial advisors in Denver, Colorado, however, not all of them are created equal. When you start your search for a financial advisor, it’s important to know what to look out for so that you can find the right fit for your needs. In this article, we’ll go over the things you should be looking for in a financial advisor and how to find one near you.
Why do I need a Financial Advisor?
There are many reasons why you might need a financial advisor. Maybe you’re starting a business and need someone to help you with your finances. Maybe you’re retired and want someone to help you manage your money. Maybe you’re just not good with money, earn a good living and recognize you need some help.
Whatever your reason, you recognize that you’ve gotten to the point in life where figuring out your finances is overly complex and time-consuming and even if you had the time, you’re concerned with the risk of a mistake because a mistake could result in you getting priced out of Colorado as a retiree.
Everyone’s used to hearing that “it’s important to find a financial advisor that you can trust” but most advisors are good at selling how trustworthy they are (even if they’re not). Here are some things to look for when finding a financial advisor in Denver, Colorado:
- Check their credentials. Make sure the financial advisor is certified by the CFP Board or another reputable organization.
- Ask about their experience. Find out how long they’ve been working as a financial advisor and ask what makes their process for serving people like you different than other advisors.
- Ask what documents of yours they’ll want in order to provide you with good financial advice. If they’re truly comprehensive, they’ll want to review your estate documents, insurance documents, employee benefits, tax returns, and investment statements from all your accounts (including 401ks and pensions).
- Compare fees. Make sure you understand how the financial advisor charges for their services and compare that to other advisors in the area. There are no financial advisors that are free and if any say, they don’t charge you anything; it means they’re recommending products with high commissions and fees built into them.
- Schedule a consultation. Meet with the financial advisor to get an understanding of their investment philosophy and see if they’re a good fit for you personality-wise. If you prefer remote appointments or in-person, request it.
How to find the right Financial Advisor In Denver, Colorado (and it’s not as simple as googling it)
When it comes to finding a financial advisor, there are many factors to consider.
The first step is knowing where to look. If you search “financial advisors near me“, you’ll have a near impossible time differentiating between good and bad advisors. All you’ll see is the number of years the company’s been in business but nothing about their expertise, target client, fees, or philosophy.
We think that you should search the following places:
These three organize by specialty and are forthright with their fees. We think that there should be no guessing about what it’ll cost to hire a financial advisor before the appointment so you know what to expect and aren’t taken off guard. There are some financial advisors that charge as much as $25,000 for a financial plan.
The most important thing is to find someone who you can trust and who has your best interests in mind. Here are a few tips for finding a financial advisor in Denver, Colorado:
- Do your research. Before meeting with any potential advisors, it’s important to do your own research. This includes reading reviews, researching their credentials, and understanding their investment philosophy.
- Ask for recommendations. If you have friends or family members who have worked with a financial advisor in the past, ask for their recommendations. They can provide first-hand insights into what it’s like working with that particular advisor.
- Meet with multiple advisors. Once you’ve narrowed down your list of potential advisors, schedule meetings with each of them. This will give you an opportunity to get to know them better and see if they’re a good fit for you.
- Ask questions. During your meetings, be sure to ask lots of questions about their experience, investment philosophy, and fees. You should also ask about their process for working with clients and how they would handle your specific financial goals.
What To Look For When You Start Your Search for Financial advisors in Denver, Colorado
When you’re looking for a financial advisor in Denver, it’s important to keep a few things in mind. First and foremost, you’ll want to make sure that the advisor is properly licensed and registered with the state of Colorado. You can check this information by visiting the Colorado Division of Financial Services website.
Next, you’ll want to understand how they charge. Ask if the advisor is “fee-only”, “fee-based” or paid on commission. Click here to get an explanation of the vital differences.
Finally, when you sit down with an advisor for an initial consultation, be sure to ask plenty of questions. Find out about their experience working with clients in your situation, their investment philosophy, and how they would handle your specific financial goals. By taking the time to do your homework up front, you can be sure that you’re working with the perfect financial advisor for your needs.
Tips for finding the right advisor for you
Financial planning for people who live in Denver is a necessary part of life, but it can be tricky to find the right financial advisor. If you live in Denver, Colorado, there are a few things you should keep in mind when looking for a financial advisor.
First, you need to consider what your financial goals are. Do you want to save for retirement? Invest in a rental property? Build up your emergency fund?
Once you know what your goals are, you can start looking for an advisor who can help you achieve them. The cost of living in Colorado isn’t low so creating a strategy to buy a home, build an emergency fund, and save for retirement takes thought, time, effort, and sacrifice.
Next, you need to research different advisors. Read reviews online, and ask friends and family for recommendations. Once you’ve narrowed down your options, schedule consultations with each of the advisors on your list. This will give you a chance to ask questions and get to know them better.
Finally, trust your gut. Choose the advisor that you feel most comfortable with and who you think will be the best partner in helping you reach your financial goals.
How do the financial advisors’ planning processes differ and were they made with your goals in mind?
Financial planning is complicated and the advisor you hire’s job is to make it easier, more digestible, and simpler so you feel comfortable as you progress towards your financial goals.
For example, if you’re a busy working professional, Progress Wealth Management works almost wholly virtually so you can meet up with us between appointments at work. We aim to make working with us painless, simple, and efficient because you work hard and we’d rather give you that time back with your family.
Rather than driving, parking, and walking into a stuffy old office with bad coffee, we’ve simplified working with us so you can get the advice you’re looking for without having to waste time.
If you’re an international expat, your advisor should be well-versed in your country’s tax laws and how they work with tax laws within the United States.
If you’re a retiree, the advisor you employ should have a simple process to help you afford your retirement without any question of how your future looks.
Above all else: Make Sure the Financial Advisor You Hire in Denver, Colorado is a Fiduciary.
Surprisingly enough, it’s not legally required for financial advisors everywhere to always have their client’s best interests at heart. It’s legal to sell your clients underperforming, overpriced, high-fee investments or to recommend insurance products when they’re unnecessary.
If you hire a financial advisor in Denver, Colorado who’s not a fiduciary, you’re really just hiring a highly commissioned salesperson who isn’t qualified to help you understand how to afford your future. In our opinion, that’s not good enough.
Denver’s already expensive enough. Don’t waste money on unnecessarily high fees or commissions. Save or spend your hard-earned money.
Colorado’s State Income Tax Rate is 4.63%. That’s not low. Your advisor should help you with making your tax bill, lower.
One of the most important roles a financial advisor can help is tax planning. By hiring a financial advisor, you should expect to get a budget and a plan to lower your tax bill both today and in the future (and in doing so, make life more affordable).
If all your advisor does is manage your money, you should probably just hire Betterment to do the same thing for 1/5 the cost. A fancy suit and a decent conversion aren’t worth decreasing your retirement savings by potentially half due to their fees and lack of value.
