How to find an advisor

3 Steps to Finding
the Right Financial Advisor

Recognize That There Are Different
Types of Advisors

While some financial advisors aid in planning, they may not provide services such as managing investments. To find the best advisor for yourself, you need to understand what kind of advice you need; financial planning, investment advisory, or retirement income planning. Then you can start searching for financial advisors that have expertise in the service you require.

Credentials Matter

Look for advisors who have a Certified Financial Planner, Personal Financial Specialist, or Chartered Financial Analyst designations or certificates. This proves that the credentials were not bought for a fee but were instead obtained after passing an examination. The members of The National Association of Personal Financial Advisors also have reliable credentials.

Check Complaint History

After verifying the credentials of an advisor, check their records from FINRA, SEC, or any organization affiliated with the advisor. This will reveal any complaints that have been reported against the financial advisor, and it is generally advised that you should stay away from those with multiple complaints.

When Should You Consider Hiring a Financial Advisor?

Retirement

Having a good advisor to plan your retirement investments can prove to be extremely beneficial and ensure a financially stable retirement.

Increased Income

If you got a significant raise, you should consider developing a plan to increase your financial position in the future.

Divorce

Shared finances can adversely affect your financial situation during a divorce. The advice provided by a professional will help you make smart financial decisions.

Major Life Changes

This includes getting married, starting a family, sending your children to college, changing jobs, receiving inheritance etc. You need professional help in such circumstances to make well-informed financial decisions.

When Should You Not Consider Hiring a Financial Advisor?

Debt

If you are deep in debt, hiring a financial advisor may not be the best choice.

Paycheck to Paycheck Life

If you rarely have money to spare, you need to look into budgeting and cost-cutting instead of investing in a financial advisor.

5 Most Important Questions to Ask
Before Hiring a Financial Advisor

1. What are your qualifications?

This question will allow you to become familiar with the credentials, licenses, and any other certifications that the financial advisor has. This will help in determining whether their qualifications are appropriate for the financial advice you are seeking.

2. How do you charge for your services?

It is important to know how the financial advisor determines their charges, including any information about the incentives they receive by selling you specific services. Fee-only advisors do not get commissions for product sales and may only charge you a service fee determined by the percentage of assets that they manage.

3. What services do you offer?

By asking this, you will also find out the services that the organization or individual will not provide. The answer to this question will aid in deciding which advisor is best suited to your needs.

4. What is your investment philosophy?

This is especially useful if you have a preference for a specific investment approach. It is important to share the same philosophy in order for you to stick with the way that the financial advisor manages your assets.

5. How will our relationship work?

How often will you meet the advisor? How much contact do their clients have with them? Will they be available through emails or phone calls apart from the appointments that are scheduled? This will help you hire an advisor who will be able to give you the amount of time you require.