Finding The Right Financial Advisor for You

Finding a financial advisor that’s right for you is just like finding any other professional, like a tailor or a barber. Of course, if you pick the wrong barber, you wear a hat for a few weeks. Pick the wrong financial advisor, and the situation becomes dire.

Most people find it hard to openly talk about their financial needs, which is why it is crucial to identify a financial advisor you can fully trust. For your interactions with your financial advisor to be productive, you must feel absolutely comfortable. The right financial advisor should be able to match your specific financial needs regarding experience and knowledge. The following are some useful tips on how to find the right financial advisor;


Get Recommendations


You can get useful recommendations from co-workers, friends, or family when looking for a financial advisor. You can find out about the professional they trust with their financial needs and ask them why they believe the professional. Other useful sources of recommendation include;

  • Brokerage firms
  • Online customer reviews
  • Internet listings
  • Your bank
  • Your attorney or tax planner


Interview the Candidates


You can only find an investment professional that is right for you by talking to several candidates. You should ask relevant questions and also be ready to respond to their questions. A prospective financial advisor may ask you about your;

  • Level of investment risk
  • Long-term healthcare plans
  • Retirement plans
  • Insurance needs
  • Financial goals
  • Current investments



You should remember to ask for references from their colleagues such as insurance agents, attorney or accountants. Also, you should request for a contract showing the amount you are expected to pay as well as the services provided by the financial advisor.


Look out for their Credentials


It takes a lot of time and effort to get professional licenses despite the fact that it does not guarantee competence. However, you should always check look out for the basic professional designations and certifications when selecting a financial advisor. The most notable professional designations of a financial advisor include;

  • CIMA, Certified Investment Management Analyst
  • CFP, Certified Financial Planner
  • ChFC, Chartered Financial Consultant
  • CFA, Chartered Financial Analyst
  • CLU, Charted Life Underwriter
  • CPA, Certified Public Accountant


Ask about their Preferred form of Compensation


Forms of compensation vary from one professional to another, and that is why it is important to ask how they are compensated. The most notable forms of compensation include; payment on a commission basis, charging a fee for based on time spent with a client, or fee plus commission.  Also, it is advisable to build a relationship with your advisor for more positive engagements.

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