A financial planner helps you manage your wealth, organize your finances and prepare for retirement. Though talking about money can be intimidating, a fiduciary financial advisor guides you to the right decisions for your savings and investments. We researched the best financial advisors in Tulsa to help you set and accomplish your financial goals.
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Financial advisors have experience with investments and financial planning to help you to achieve financial success. Money advisors also work with clients to establish a budget and develop financial discipline.
While people in Tulsa benefit from professional asset management at any stage of life, you may need a financial advisor if:
You’re starting your first salaried job and want to learn more about investments
You recently got married and are merging finances with your spouse
You recently had children and need advice preparing for their financial futures
You have at least $500,000 in assets and want someone to take over asset management
You want guidance on issues dealing with cash flow, savings or repaying loans
You don’t need to be wealthy to seek professional financial advice, but hiring a money advisor can be expensive. Some investment advisors require a minimum amount of assets in your account, usually $100,000.
Types of financial advisors
There are two fundamental types of financial advisors in Tulsa: robo-advisors and human advisors. A robo-advisor is an online service that utilizes computer algorithms to build and manage clients’ portfolios. Robo-advisors are cost-effective options that require low account minimums.
Human advisors are professionals who use their education and experience to guide you through everything from investments to retirement planning. While human advisors charge more than robo-advisors for their work, they provide more detailed, personalized services for clients with significant assets or complicated finances.
Another critical distinction separates fiduciary financial advisors and non-fiduciary advisors. A fiduciary is a person or organization that has the duties of good faith and trust. This means they’re legally and ethically bound to act in their client’s best interests. By law, if they don’t operate according to your best interests, you can sue them. Fiduciary advisors must register with a state securities regulator.
Non-fiduciary advisors, which include insurance agents, stockbrokers and broker-dealers, don’t have to act in their clients’ best interest. This lack of regulation tempts these advisors to make recommendations that may not be in your best interest but benefit them financially.
What is the cost of a financial advisor in Tulsa?
The cost of a financial advisor in Tulsa varies depending on your specific needs. Financial planners offering asset management earn money through:
Flat fees. A flat fee lets clients know what to expect on their bill for a specific, one-time service. For instance, someone needing a financial plan would pay a flat fee of $1,000 - $3,000.
Hourly rates. Hourly rates between $100 and $300 are common for ad hoc financial advice or cases that exceed what’s covered by a flat fee.
Assets under management fees. These fees are a percentage of what’s in your account. Robo-advisors charge around 0.5 percent while human advisors take between 1 and 2 percent.
Commission. When working off commission, financial advisors receive 3 - 6 percent whenever they buy or sell securities on the client’s behalf.
Fee-only advisors in Tulsa exclusively make money off of fees, while a fee-based advisor earns both fees and commissions. A fee-only advisor may cost more upfront, but they lack some of the potential conflicts of interest that come with commissions.
What qualifications should a financial advisor have?
Look for a fiduciary financial advisor in Tulsa who has a relevant college degree and some kind of additional certification, like being a Certified Financial Planner.
Additionally, all financial advisors in Oklahoma should have registered with the Securities and Exchange Commission or Financial Industry Regulatory Authority.
Before hiring a financial advisor, ask:
Have you or your firm ever faced discipline from a regulator? If yes, for what reasons, and how was the matter resolved?
Are you a fiduciary?
How do you make money?
Do you charge an hourly rate, flat fee, AUM fee or commission?
What experience do you have with people in my situation?
What products and services do you offer? Are you limited in the products and services you can recommend to me?
When evaluating a fiduciary financial advisor to work with in Tulsa, watch out for financial planners unable to provide proof of education or certification or verify their track record. You can check these using FINRA’s BrokerCheck to avoid hiring a known scammer.
Founded in 2016, Facet Wealth guides its clients toward financial prosperity by offering state-of-the-art financial planning packages and creating custom investment solutions. This company’s Certified Financial Planners virtually meet with clients to help them with their 401(k) plans, employee benefits, stock options, individual retirement accounts and asset management.
ConsumerAffairs content is intended to be used for general information purposes only. Before you make any investment, it is very important to do your own analysis based on your own personal circumstances and consult with your own investment, financial, tax and legal advisors.