How To Choose A Financial Advisor

Choosing someone to guard your nest egg is not something to take lightly and choosing the right financial advisor could be one of the biggest decisions you make regarding your financial life and retirement.

How To Find A Good Financial Advisor

The role of a financial advisor will help you understand the implications of the financial decisions you make.  They can help you with all of the financial decisions in your life such as:

  1. Setting budgets
  2. developing savings plan
  3. Helping you decide to pay off your mortgage
  4. Investing
  5. Insurance and estate planning

Seek The Advice You Need

Depending on your situation, you may only need a small amount of assistance and not a comprehensive set of services.

Does a Financial Advisor Have To Be Licensed? – Yes

You Need An Advisor You Can Trust

You need to be confident you trust your financial planner and that you absolutely trust them.  Don’t be afraid to interview your candidate to see how you feel about them.  You also need to ensure your advisor will be acting in your best interests.  One way to do this is that nobody cares more about your money than you do – trust has to be earned.

You need to look at what your advisor is advising you into.

A good advisor will give you time and not pressure you to make decisions.

How Is your advisor paid?  Do they get paid more when you invest a certain way?  If so, they may not be looking out for your best interests.

Who is getting paid and how are they getting paid?

How Should A Financial Planner Be Paid

Fixed payments show that the planner is not being paid based on products they recommend.  If they get a commission, they get paid based on the products they recommend to you!

Interview Questions For Choosing A Financial Planner

  1. Ask what licenses the advisor has and for how long they have been licensed.  Age does not necessarily mean experience.
  2. What is the scope and extent of your professional service.
  3. What is your regulatory and disciplinary record.  Find out of any open complaints exist.
  4. How Are you compensated?  Fees or Commissions.
  5. What fees and costs are not included in the compensation? (Setup or termination fees.  Annual maintenance fees)
  6. What is your strategic methodology and philosophy.
  7. Are you a fiduciary?
  8. What if something happens to you?  Who takes your place and what happens to my money.
  9. What are advisor, staff and team member roles?  Who will all be involved in your portfolio.
  10. Tell me about your ideal client.  Ensure they are a good fit for you.