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Are you wondering how to find a female financial adviser? Historically, the majority of financial advisors have been men. Although women tend to be underrepresented in this field, research identifies many unique attributes women bring to the table.
For starters, women tend to be relationship-driven and good listeners — both of which are important for understanding client needs and making a quality financial advisor. Many women also prioritize long-term investing gains and protection against downside risk. This strategy has been shown to pay off, with numerous studies pointing to women outperforming men when it comes to stock market investments.
Research by the Haas School of Business at the University of California, Berkeley found that women outperformed men by 0.94% per year. Another study by the Warwick Business School concluded women outperformed men at investing by 1.8%. A few percentage points may not seem significant, but when applied to large investments over time, the differences in results can be astonishing.
If you’re thinking about working with a female financial advisor, you’ve come to the right place. We’ll show you how to find a female financial advisor and more right below.
- Step 1: Define your financial goals.
- Step 2: Understand how a financial advisor works.
- Step 3: Compare prices, commissions and fees.
- Step 4: Get matched with a female financial advisor.
- Pros and Cons of a Financial Advisor
- Find a Financial Advisor
- What to Know Before You Hire a Financial Advisor
- Frequently Asked Questions
Step 1: Define your financial goals.
It’s worthwhile to spend some time contemplating and defining your financial goals. Yes, a financial advisor can help you define your financial goals, but you’ll have a better picture of the type of advisor you want to work with if you take on some of the initiative yourself.
Start by thinking about where you want to be financially in the short run, medium run and long run. Maybe you want to start building a budget or set aside some savings in the next few months. Down the line, you may be hoping to pay off debt, buy a home or invest in a business. Long term, you should be focused on retirement.
Step 2: Understand how a financial advisor works.
Your relationship with your financial advisor begins with an open and honest discussion of your financial situation — including debt, assets, cash flow — and financial goals. Your financial advisor will consider where you are, where you want to be and how to help you achieve your goals. Your advisor may also identify financial areas that could use some improvement.
A financial advisor will offer suggestions and recommendations unique to your personal situation. She will work with you to create a plan and develop strategies for attaining your goals. This could mean creating a savings plan, investment strategy, tax strategy, helping you refinance debt, cover insurance needs, build an emergency fund or just about anything else.
Financial advisors also help you build wealth long term by investing money and minimizing risk. They may offer investment recommendations or manage your entire investment portfolio.
It’s important to remember that your relationship with your financial advisor is ongoing. Although you can use their services on a one-off basis, most people receive the bulk of the benefits by checking in with their advisors periodically. You may meet with your advisor every month or quarter to discuss your progress and whether your financial plan should be adjusted.
Step 3: Compare prices, commissions and fees.
Most financial advisors are paid through client fees, commission or a combination of the two. Client fees can be charged hourly or on a retainer basis. Most financial advisors charge between $150 to $400 an hour, which can total $2,000 to $5,000 depending on how much service you need.
Many financial advisors charge an asset-based management fee. This fee is a percentage of a client’s assets the advisor will manage. An asset-based management fee is usually charged on an annual basis and is typically about 1% of the entire investment portfolio. If you have a large sum of money to invest, your financial advisor may be willing to charge you less than 1% annually.
Financial advisors can also can earn commissions for certain transactions or for selling you specific investment products. Advisors who work on a commission basis might have an incentive to promote products that generate a larger commission for themselves.
For this reason, it’s important to work only with a fiduciary advisor or someone who is legally obliged to act in your best interests. Still, many people may opt for a fee-only financial adviser, to avoid potential conflicts of interest altogether.
Step 4: Get matched with a female financial advisor.
Ready to get matched with a female financial advisor? Remember to have your financial goals in mind as you start your search. If you’re trying to pay off your debt, work with a professional that specializes in this field. If you’re hoping to plan for a family or save for retirement, focus on advisors who regularly work with clients in similar situations.
Once you’re ready, here’s how to find a female financial advisor.
Pros and Cons of a Financial Advisor
As you contemplate working with a financial advisor, it’s important to weigh the pros and cons. While financial advisors can help you improve your overall financial wellbeing, they may not be a good fit for everyone. Here’s what you should know.
Pros of a Financial Advisor
- Expertise and investing knowledge: Financial advisors are professionals in their field. They’ve spent years helping people from all walks of life plan their finances and have in-depth experience with market fluctuations.
- Personalized financial planning and investment strategy: Financial advisors cater to you and offer recommendations based on your personal situation.
- Less risk: Financial advisors create an investment strategy based on your risk preference and can help you stay on track even during market downturns.
- Minimize taxes: Financial advisors can offer remedies that allow you to stay invested while minimizing your tax burden.
- Ease: Managing your finances can be overwhelming. Financial advisors allow you to take a hands-off approach while still keeping your informed as you make critical decisions.
Cons of a Financial Advisor
- Possible conflict of interest: Unless you’re working with a fiduciary, fee-only financial advisor, there may be some conflict of interest risks.
- High fees for a small investment: If you’re not investing much money, it may not be worthwhile to work with an advisor charging an asset-based management fee. You might be better off with a 1-time consultation.
Find a Financial Advisor
Looking for more information on how to find a financial advisor? Here are our top choices for the best financial advisors. Take a look!
Active management made a big comeback in 2020 and 2021 and certain sectors vastly outperformed and stock pickers ruled the day. But for many retail traders, active investment management and sophisticated trading strategies are out of reach. Titan wants to even up the playing field and give retail the same sophisticated strategies as wealthy investors. Through a mix of different portfolios and risk tolerance objectives, Titans has tailored investment strategies for all types of investors, but clients will still need to research these techniques and understand the types of trades they’re getting into.
- New investors
- Investors without the capital for traditional active management
- Retail traders who lack the time to research and develop their own portfolio strategies
- Affordable active portfolio management
- Wide variety of investment themes and risk levels
- Transparency in investment strategy
- No minimums
- Fees higher than some similar competitors
What to Know Before You Hire a Financial Advisor
You’ll want to shop around for different financial advisors before you decide on which one to work with. Most financial advisors offer a free initial consultation. Use this time to ask them questions about their qualifications, investment philosophy, whether they’re a fiduciary and how they get paid. Ultimately, go with the advisor you feel has a good understanding of your situation and goals.
Frequently Asked Questions
Do you really need a financial advisor?
No, but working with a financial advisor brings many benefits. In fact, many people choose to maintain an ongoing relationship with their financial advisor because typically, the benefits outweigh the costs.