The United States government does not regulate financial advisors nor are they cleanly or clearly defined in any particular place. Mark Hauser, the co-founder and managing partner at Hauser Private Equity, has been a successful industry professional for the better part of the last three decades.
Taking his expertise to the people, Hauser sat down to define concepts and outline how clients can find the right advisor to support their goals.
Let’s take a closer look at how Mark Hauser defines financial advisors, what they do within the system, and how to find the right one for the job.
What Does A Financial Advisor Do?
The government does not define financial advisors, nor are they regulated by some larger committee. Instead, financial advisors are simply financial experts with backgrounds in specific fields.
No matter their background, Mark Hauser suggests that financial advisors will offer a slew of integral services including.
- Debt and Debt Management – Managing debt and determining repayment structures can be easier with a financial advisor.
- Advice Regarding Insurance – Navigate insurance policies while plugging coverage gaps that could lead to liabilities.
- Support With Strategic Investments – Strategic investments seed the bank accounts of tomorrow. Discuss risk assessment as well as short and long-term goals.
- Funding for College – A path to affordable college funding can be found with the right targeted financial goals.
- Estate Plan Execution – Ensure the proper management of money with regard to an estate plan. Financial advisors help to structure wealth transfers that comply with the wishes of their clients while meeting legal requirements.
- Tax Planning and Advice – Advisors can help with a litany of tax-related endeavors.
Connecting With a Financial Advisor
First and foremost, Mark Hauser is an advocate of performing due diligence. As financial advisors are not regulated or neatly defined, it is important for clients to do the extra work to make sure that they are matched with the right partner.
Mark Hauser believes that there are a few key ways to find the right partner for a financial advisor, so let’s look at them below.
Verify Credentials by contacting the CFP Board website. A financial advisor with credentials will be easy to verify. Be aware that an official designation does not guarantee the outcome of an individual’s advice.
Determine the compensation method of the potential advisor. Mark Hauser makes the distinction clear that fee-only financial advisors are bound by the fiduciary interest of their clients, whereas this is not the case with commission-based advisors.
Meet and connect with a financial advisor to ensure that they are the right match. A quality relationship will include respect and understanding between both parties with regard to the process.