For those who are looking for a financial adviser, the challenge lies in choosing someone from a big, popular firm compared to someone from a small, start-up company. Will the size of the firm matters?Or should you go with the person you think is compatible with you?
Based on experts in the industry, the size of the firm can create a big difference.
According to a certified financial advisor, Howard Pressman who is a partner at a firm in Vienna, Virginia, the size of the firm is one important factor that should be considered. There are many individuals who are not inclined to choosing large firms because they think their services are not personalized and they feel that the advices they are given are not catered specifically for them. This could not be more wrong because choosing a small firm entails that the needs of the client may not be met accordingly because of their limited coverage.
Clients who are looking for a professional to handle their financial lives have a hard time choosing because of the many options available to them. These professionals differ in their degree of education, their credentials, their focus such as insurance or investments and their specialties such as college savings or tax planning. The major difference is that there are financial advisors that work for a small firm with only one or two staffs or they could be working at a huge company that employ hundreds or thousands.
The major benefit of hiring someone from a smaller firm is the personal experience the investor gets. Industry observers said that smaller firms will be able to tailor their advice depending on the situation the client is in and their relationship is closer.
If you are considering of hiring a small firm with one person staff or handles very small operations then it is best to ask if they have any succession plan in case of sudden death or should the financial adviser decides to retire. According to wealth manager, CFP Evan Beach, in case something unfortunate happens to your advisor, you must be taken care of no matter what.