Hiring A Financial Advisor: The 6 Biggest Mistakes to Avoid

Retire Ready with Kyle Hammerschmidt

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Summary
In this conversation, Kyle and Kolin discuss the mistakes people make when hiring a financial advisor. They highlight 6 key mistakes and provide advice on how to avoid them. The mistakes include ignoring the importance of tax planning, not having a strategic investment plan, confusing fee-based and fee-only advisors, focusing on investments before comprehensive planning, relying on big financial firms for guidance, and not seeking a customized retirement plan. The conversation emphasizes the need for a clear understanding that not all financial advisors are created equal and encourages listeners to make informed decisions when deciding to partner with a financial advisor.
Takeaways

• Not all financial advisors are created equal, so it's important to do thorough research and make informed decisions when hiring one.
• Tax planning is a crucial aspect of retirement planning that should not be ignored. It's important to have strategies in place to minimize tax bills and protect social security benefits.
• Having a strategic investment plan that focuses on income and cashflow is essential for a successful retirement.
• Understanding the difference between fee-based and fee-only advisors is important. Fee-only advisors are typically more transparent and have fewer conflicts of interest.
• Focusing on comprehensive planning before diving into investments is crucial. A customized retirement plan that considers taxes, income, healthcare, estate planning, and other factors is essential.
• Choosing a financial advisor solely based on name recognition or the size of the firm may not be the best approach. Consider working with independent firms that prioritize personalized service.
• Avoiding these common mistakes can lead to a more successful and fulfilling retirement journey.

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Disclosure: You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This podcast is intended for educational purposes only. Nothing in this podcast constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. MOKAN Wealth Management is a registered investment adviser with the SEC. Registration of an investment adviser does not imply a certain level of skill or training.

Chapter

1. Introduction (00:00:00)

2. Mistake #1 (00:02:05)

3. Mistake #2 (00:03:57)

4. Mistake #3 (00:05:56)

5. Mistake #4 (00:09:27)

6. Mistake #5 (00:11:56)

7. Mistake #6 (00:14:38)