A fiduciary financial advisor helps you budget, save and invest to achieve your monetary goals, like paying for retirement or your children’s education. Our partners at ConsumerAffairs researched the best financial advisors in Cleveland to aid your search for trusted financial help.
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Financial advisors use their education and experience to guide clients to their financial goals. So, if you’ve just experienced a major life change or you’re just looking for an expert opinion, consider hiring a financial advisor in Cleveland.
Many financial advisors require clients to have $50,000 or more in assets. If you can’t meet these minimums, shop around to find financial help that charges a flat fee, hourly rates or a retainer.
Types of financial advisors
There are many types of financial advisors in Cleveland with different qualifications and specialties such as financial planners, retirement planners and investment advisors. There are even automated portfolio and asset management services, often called robo-advisors.
A robo-advisor is a software-based service for asset management that’s often the best option when you begin saving. As you begin to grow your savings, many investors transition to a human advisor for more personalized planning.
Many investment advisors in Cleveland are fiduciaries, which means they adhere to a legal and ethical standard that forces them to act in their clients’ best interests. Non-fiduciaries usually only have to meet the sustainability standard of providing suitable advice. The difference here is that non-fiduciaries are able to recommend options that benefit themselves more than the option that’s strictly best for the client.
What is the cost of a financial advisor in Cleveland?
There are several ways that financial advisors in Cleveland charge their clients, and this determines how much you’ll pay for financial help.
Commission-only advisors charge a percentage of the funds invested, normally between three and six percent. Robo advisor fees are generally much lower, sometimes as low as 0.25 to 0.5 percent.
Other advisors charge a percentage of your total assets under management and pull this fee directly from your account. These advisors are also the most likely to have minimum investment amounts.
Flat fees for specific financial planning or asset management services are often between $1,000 and $3,000.
Hourly rates range between $120 and $300.
Retainer fees range from $2,000 to $11,000 for a year of service.
It’s crucial that your advisor is transparent about how they make money so that conflicts of interest do not occur, such as an advisor making recommendations for a client based on the commission they will receive rather than acting their best interest like a fiduciary. Be aware of the potential biases inherent in these compensation models and factor that into your advisor’s recommendations.
What qualifications should a financial advisor have?
Financial advisors in Cleveland have a variety of titles and credentials, including Certified Financial Planners, Chartered Financial Consultants or Chartered Investment Counselors, to name a few.
When considering a financial advisor for asset management in Cleveland, ask the following questions:
How do you make your profits?
What qualifications do you have?
Are you a fiduciary?
What experience do you have?
What types of clients are you seeking?
What should my expectations be?
How and how often are we able to communicate?
Have you ever been convicted of a crime or investigated by a professional organization or regulator?
Established in Baltimore in 2016, this company employs fiduciary Certified Financial Planners, has no minimum investment and charges a flat annual planning fee. Online reviews say it provides quality service and may be a good option for those with fewer assets.
This company, located in the Cleveland suburb of Highland Heights, is a fee-only fiduciary investment advisory firm with over $110 million in assets under management. Reviews mention that Purtill offers local, personal portfolio and asset management and speak highly of its service and professionalism.
First Fiduciary Investment Counsel
Established in 1975, this organization now boasts over $500 million in assets under management and is most appropriate for clients with investments over $1 million. First Fiduciary voluntarily meets Global Investment Performance Standards.
Fairpoint Wealth Management
This Cleveland-based fiduciary financial planning firm offers personalized asset management and focuses on early retirement. Fairpoint uses a fee-only compensation model with no commissions, add-on fees or minimum asset requirements. Clients have 24/7 access to their online planning portal.
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