Best Financial Advisors in Fort Collins

Frequently Asked Questions

• Introduction

  There are many titles for financial professionals, so it's challenging to track what each one means. A financial advisor is probably the term you've heard most often. Financial advisor is a broad term for a professional who helps individuals or companies manage their finances, including investment choices. There are over 100 certifications that financial advisors can obtain.
  

  • Financial planners, wealth managers, and investment advisors are all financial advisors with different focus areas.
  • A financial planner helps an individual or a company make a plan to achieve long-term financial goals.
  • A wealth manager helps individuals maintain their wealth through various disciplines and services, such as taxes, estate planning, and investment advice.
  • An investment advisor offers investment advice and recommendations to individuals or organizations.
    

  There’s a misconception that you have to be extremely wealthy to use a financial advisor. In reality, they can be beneficial for people from any income level. Keep reading to find answers to the most commonly asked questions about financial advisors, so you know which type can fit your specific needs.
  

• Why is it crucial for people to hire a CFP in Fort Collins?

  Hiring a CFP in Fort Collins provides reassurance to clients that their financial advisors do not have:

  • Revoked financial licenses in areas such as securities representation, broker/dealer activities, insurance, or investment advising;
  • Personal or business bankruptcies;
  • Felony convictions for financially-based crimes like theft, embezzlement, or tax fraud;
  • Felony convictions for murder or rape;
  • Recent convictions for violent crimes;
  • Felony convictions for non-violent crimes, including perjury, within the past five years.

• How can Fort Collins residents locate a fee-only financial advisor?

  Fort Collins residents who are in search of a fee-only financial advisor have the option to conduct their own research to find the right professional. Online resources such as the National Association of Personal Financial Advisors website can be a valuable tool for this purpose. The NAPFA website provides a comprehensive platform where individuals can explore and assess important information about financial advisors, such as their location, services provided, and fee structure.

• How can someone ensure that they are hiring a legitimate financial professional in Fort Collins?

  When considering hiring financial professionals in Fort Collins who identify themselves as "advisors," it is important to ensure they adhere to certain standards to protect your best interests. One way to do this is by requesting that they sign a "fiduciary oath," which signifies their commitment to acting as a fiduciary, meaning they are legally obligated to prioritize your interests above their own. It is also advisable to seek advisors who charge fees that are less than 1% of your assets under management to promote transparency and help ensure that the advisor's compensation is reasonable.

• What are the benefits of working with a fee-only financial advisor in Fort Collins?

  Fee-only financial advisors in Fort Collins operate on a distinct compensation model that sets them apart from advisors who receive commissions or sell investment products. These advisors are solely reimbursed by their clients and do not earn any commissions from product sales or referrals. They adhere to a legal obligation to prioritize their clients' best interests above their own. In addition, these professionals maintain independence from brokerage firms, banks, and insurance companies, ensuring that their advice remains unbiased and free from conflicts of interest.

• What questions should a potential client in Fort Collins ask a financial advisor?

  There are a variety of questions helpful in defining someone's planning relationship with a financial advisor in Fort Collins. These include:

  • What are your qualifications?
  • Do you always act in a fiduciary capacity?
  • Which services do you offer?
  • Which kind of financial planning do you engage in?
  • What kind(s) of clientele do you generally deal with?
  • How frequently do you interact with your clients?
  • How do you bill for your services?
  • Have you ever been subject to a regulator's disciplinary process or breached the law while practicing?

• Are financial advisors worth it?

  Whether or not a financial advisor is worth it depends on your personal situation. If your finances are fairly straightforward, then you may be better off handling it on your own. But if you have substantial assets or a complex investment portfolio, then hiring someone to handle it for you can be well worth the cost.