Have you been searching for wealth management advisors in Boise?

Choosing the right financial advisor can make a difference of about 15 percent in the amount of income you will have when you retire, according to a Journal of Retirement study. Your financial advisor can’t legally promise you any specified return, but you will be better off with the right financial advice than without it.

Here’s what you need to avoid in order to make sure you get the financial advisor who will be best for you.

Don’t hire a non-fiduciary advisor

Brokers earn their income from the fees they get when they trade your stocks. A non-fiduciary broker may churn through your s to maximize their fees without any fundamental concern about preserving your capital.

A fiduciary is someone who is legally required to act in your best interests. Fiduciaries avoid conflicts of interest. For instance, a fiduciary financial advisor will not recommend you make an investment because they get a kickback or a commission. Fiduciary financial advisors will make complete disclosures of the facts around a potential investment to avoid even the appearance of a conflict of interest.

Don’t hire the first financial advisor you find

People who come into large amounts of money generally know they need professional help with their money management, but they may be more interested in enjoying their newfound wealth than in doing their due diligence for the best financial advisor. Your financial advisor should at least be certified as a ed Investment Advisor, or RIA. Do a broker check to make sure your financial advisor is appropriately certified.

Don’t overlook investment fees

Investors can get into trouble with mutual funds that are managed by their financial advisors. There are more mutual funds than there are stocks. That’s because managing mutual funds is so profitable for the people who run them.

You can see a reference to the “expense ratio” and assume they are limited to the stated 0.5 to 1.0 percent. (The average mutual fund charges 0.9 percent per year for fund management, according to Forbes.) But transaction costs and taxes can run up the total amount deducted from your to 3 or even 4 percent per year.

Another consideration is that big mutual funds are not nimble. When they buy or sell large numbers of shares, they drive the cost per share up or down before they can complete their transaction.

Don’t Hire a Financial Advisor Whose Strategy Doesn’t Align with Your Own

Risk tolerance is a personal preference among investors. Some investors want to grow their s as rapidly as possible, and are willing to take big risks to do it. Other investors are more concerned about not losing money than in getting big returns, and are willing to forego potential gains to keep their assets secure.

You should choose a financial advisor who respects your investment style. You may find several competent, credentialed financial advisors in your home city, but you need to choose the one whose approach to investing most closely mirrors your objectives.