Do I need a financial advisor?
Your financial goals are as unique as you are, and that’s where most advisors start. What are you saving and investing for, now and in the long run? An advisor can help you articulate these goals, creating a plan that defines your expectations, how you get there and where you may fall short.
Financial advisors are generally knowledgeable about different kinds of investments and the moves to make in your specific situation. Some advisors will give you recommendations for investments to manage yourself, but many manage investments for clients on an ongoing basis, earning a percentage of the portfolio assets each year in return.
Communication and information
Hiring a financial advisor doesn’t mean giving up control. Advisors meet with clients at least once a year to talk about results and what’s ahead. The more you know about your investments, the more confident you’ll be about making adjustments, handling market shifts and asking the right questions over time.
That doesn’t mean all advisors are alike. When selecting an advisor to work with, consider the following tips:
Make sure you know how your advisor is paid. It could be commission, hourly rate or an annual percentage of your assets (typically 1% or less). Don’t be afraid to ask for specifics until you’re comfortable with the process.
Tell your advisor how you prefer to communicate, and how often. It should be at least yearly to monitor annual performance, but you may want to meet more often depending on your needs or goals.
Check your advisor’s credentials. Many professional designations require an advisor to stay up on current strategies, rules and regulations. Additionally, FINRA’s BrokerCheck® is a good way to research individual advisors and their firms.
Be prepared to bring your most recent account statements (checking, savings, retirement, etc.), latest tax records, estate planning documents and information about all other assets, investments or income sources to your first meeting. But if your advisor doesn’t start with your goals and what’s important to you, find one who does.
One of the world's largest investment managers, we've helped investors succeed by remaining true to our values and approach. We believe in a distinctive way of managing money, an emphasis on research, a long-term view and the recognition of the power of relationships.
Capital Group offers a variety of investment options to help you pursue your objectives — including American Funds, one of the largest mutual fund families in the U.S.
Your financial advisor can tell you more about American Funds. Or, you can purchase our funds yourself through an online broker.
When looking for professional advice, knowing what to ask can make all the difference. Put these four questions at the top of your list.
How can you help me reach my unique financial goals?
How are you paid for your services?
What are your professional credentials?
Can you provide names of other clients like me as references?
A financial advisor can work with you to define your goals and create a plan to help make them a reality. From establishing a budget to selecting investments to riding out market shifts, an advisor can help you make decisions based on your specific situation.
Our locator tool can help you find professionals in your area.
Check the background of these investment professionals on FINRA’s BrokerCheck.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
American Funds Distributors, Inc., member FINRA.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
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