In some industries, you can hire different versions of a particular professional. For instance, in the state of New York you can hire a property manager, but that does not necessarily mean you are hiring a real estate broker. If you are looking for a lawyer to handle a particular case, depending on the case, you could either hire a paralegal for the paperwork or an actual lawyer for advice. Another industry where you have a choice of who to hire is when working with a financial advisor in Schaumburg.
For your investing needs, you have two choices on who to refer. One is a financial advisor, and the other is a broker. Where the water gets muddled, however, is that a broker can also be referred to as an advisor, but an advisor is not a broker. These two categories differ, and that’s why you want to confirm who you are hiring.
If you are looking for a Financial Advisor In Schaumburg, you have to dig deep and ask the right questions to make sure you are getting an advisor. An advisor has a fiduciary, or monetary, responsibility to find suitable investments that fit your best interests. This means they are paid a flat salary for representing you, or they are paid a small cut of the assets. They do not have conflicting interests as to where to invest your money, as they are paid the same regardless of where you put it.
Because a broker can also be called an advisor, it may be hard to tell them apart or even get a straight answer from them on what they do for you. You can ask your potential financial person how they get paid. If they get a commission, they are a broker. The usual rate for an advisor is a flat 1%, where a broker can receive a great deal more based on the collective amount they can get their clients to put into specific funds.