CHARLOTTE, N.C. — Mutual funds, bonds, real estate investments, gold, bitcoin, budgeting and the like, these financial decisions call for a professional to help with set up and administration of these financial instruments. But how does one go about hiring the right Financial Advisor? Here with more is Bernadette Joy, from Crush Your Money Goals. Bernadette has real life experience and paid of hundreds of thousands of dollars to become debt free. “Making important decision such as hiring the right financial professional for you can be daunting” says Joy. She adds “ what about their fee structure, are they a fiduciary or are there any hidden fees that come along with the hire? Am I overpaying the financial professional? Here are some tips to help you answer these questions:
Tip 1. Not Understanding the Fee Structure
- “One of the biggest mistakes people make is not understanding how their advisor gets paid. Whether it’s a 1% fee on assets or commissions from products they sell, small fees add up—fast. For example, on a $500,000 portfolio, a 1% fee equals $5,000 per year—whether your investments perform well or not. Over time, that fee compounds, costing you tens of thousands of dollars!”
- “Ask upfront: Is this a flat fee, commission-based, or a percentage of assets? Transparency is key.”
Tip 2. Choosing an Advisor Who Isn’t a Fiduciary
- “Did you know not all financial advisors are required to act in your best interest? Non-fiduciary advisors can legally sell you products that pay them high commissions, even if the product doesn’t align with your financial goals.”
- “Always ask, ‘Are you a fiduciary?’ If the answer isn’t a firm ‘yes,’ walk away.”
Tip 3. Hiring Too Soon with High Minimums
- “Here’s a tip most people don’t think about: If you’re still growing your wealth, it might be too early for a high-fee advisor who works only with clients over $500,000. Those fees can eat into your growth instead of fueling it.”
- “If your portfolio is smaller, start with fee-only planners, online tools, or even robo-advisors for low-cost support while building wealth.”
Tip 4. Ignoring Hidden Fees
- “Even when you think you’re paying a simple advisory fee, watch for extra costs like transaction fees, fund expense ratios, or management fees inside investment products.”
- “Ask for a full cost breakdown of your investments. Every hidden fee takes a bite out of your returns.”
Tip 5. Outsourcing Too Much Without Staying Informed
- “Here’s the final mistake: Completely outsourcing your finances and tuning out. A good advisor is a partner, but you need to stay in the driver’s seat. If you don’t know where your money is going, it’s hard to catch mistakes.”
- “Treat your advisor as a co-pilot. Review reports together regularly, ask questions, and make sure your investments match your goals.”
If you want to make smarter money decisions and become a better investor, check out Joy’s book, Crush Your Money Goals! It’s packed with practical tips and smart money habits to help you save more, reduce fees, and grow your wealth the right way. Find it now on Amazon to start building the financial confidence you deserve!” For more information visit CrushYourMoneyGoals.com.
