Find the Best Financial Advisors in Kansas City

Choosing a financial advisor in Kansas City

Hiring someone to keep track of your finances and plan your financial future may seem superfluous to some in Kansas City, but experts have found that asset management services are almost always beneficial. Hiring a financial planner or retirement advisor provides:

• Greater return on investments — typically between 1.5 to 4 percent
• Help planning for both short- and long-term goals
• Personalized support on investment strategy, asset allocation and tax minimization

Many people seek financial advice after a big life change, and financial advisors help them create a straightforward financial plan to navigate any stage of life, whether it’s saving for retirement or paying off student loans. Consider hiring a financial advisor in Kansas City if:

• You’re nearing retirement
• You just inherited money
• You’re recently married or nearing your wedding
• You’re recently divorced or nearing your divorce
• You’re unsure how to begin investing
• You want a second opinion on current investments

Types of financial advisors

There are many types of financial advisors in Kansas City offering asset management, so deciding if you prefer a human advisor or a robo-advisor is one of the first important steps to finding financial help. Both options have their advantages and disadvantages outlined in the table below.

As a rule of thumb, robo-advisors are better for shorter-term, more general financial planning. The more complicated a situation you have (i.e., multiple businesses, accounts or goals), the more you will benefit from a human advisor. Robo-advisors also offer asset management for all levels of wealth, whereas some human advisors require a significantly larger balance to begin, up to $250,000.

In your search, you’ll likely come across the term fiduciary. A fiduciary is a person with the ability and the obligation to act for you in situations that require trust, good faith and honesty. This means that, by law, a fiduciary money advisor has to act in your best interest — whether or not it benefits them.

Some financial advisors in Kansas City are non-fiduciary, meaning they do not abide by this legal and ethical standard. The sustainability standard these advisors use requires them to recommend suitable action to the client, which they may have a stake in as well.

Fiduciary financial advisors give advice based on all of your information, including your family and career aspirations, whereas a non-fiduciary might offer recommendations based on people like you in Kansas City. This does not mean non-fiduciaries are not looking out for their clients; it just means they aren’t required by law to act in the clients’ best interest.

What is the cost of a financial advisor in Kansas City?

There are several ways financial advisors make money from asset management in Kansas City, as seen in the table below.

It’s critical to understand how your advisor makes money because this impacts how they work to make you money. If it’s only a fee-for-service structure (including hourly, retainer or flat fees), they’re less motivated to make you more money. By contrast, financial advisors who make a commission based on your assets under management or investments are more inclined to help your money grow.

However, conflicts of interest also arise, depending on the price structure. For instance, advisors in Kansas City taking a portion of your investment are more likely to move your money around needlessly or encourage you to keep a higher balance in your account. Flat fees avoid some of these temptations.

What qualifications should a financial advisor have?

It can be hard to find a reputable financial advisor in Kansas City, but the easiest way to check an advisor’s qualifications is to use the U.S. Securities and Exchange Commission’s Form ADV. This is the standard form that investment advisors (sometimes spelled adviser) use to register with the government.

Using this site, you can search for both a firm’s or an individual’s history and registrations to make sure they are licensed and legitimate. Not all advisors have to register though; the government only regulates advisors who provide investment guidance.

Reputable financial advisors also have some other form of professional certification, usually as a Certified Financial Planner. Other things to look for in a financial advisor include positive customer reviews, experience and availability.

Once you find some advisors you’re interested in working with, ask them:

• What’s your investment philosophy?
• Are you a fiduciary?
• How much will I have to pay?
• What are your qualifications?
• What’s your experience with cases like mine?
• How do you get paid?
• How will our relationship work?
• What’s your availability?

Using these answers, compare your options and come to an educated decision for your financial future in Kansas City.