If you have made the decision to look for a Financial Advisor, there are a few key steps you can take to ensure you find the right professional for your needs.
Let’s look at some easy ways to find a financial advisor who understands your concerns and uses strategies you’re comfortable with. We’ll also cover some tips on how to filter them out in your first meeting.
Where to find a financial adviser
There are a few key places to start your search for a financial advisor.
Ask for recommendations
Do you know anyone (family, friend or colleague) who has worked with a financial advisor? Did they feel the experience helped them better manage their money or better prepare for the future?
If so, ask for a recommendation. Word of mouth is sometimes the best form of advertising, and many local councilors rely on the people they serve to spread the word.
Like most things, you can search for a financial advisor online. You can use online directories or search engines to find potential advisors in your area. Many professional financial planning associations offer databases of financial advisors that you can search for free.
Check your local ads
Chances are, no matter where you live, you don’t have to go too far to find a trustworthy financial advisor. Although some may work independently, remember that they may also work at:
- Investment firms
- Accounting firms
- Banks and credit unions
If you’re having trouble finding one on your own, a good place to contact is the local chamber of commerce. Almost every community has an organization like this to help promote and promote small business interests.
What to Ask When Meeting a Financial Advisor
No matter where you find an advisor, it’s essential that you have complete confidence in their abilities. That’s why asking a few screening questions during the first meeting will go a long way. For example, you can ask:
- Are you a fiduciary?
- Are you paying or do you earn commissions?
- If you charge, what percentage do you charge for AUM (assets under management)? For example, 1% AUM for $1 million would equal an annual fee of $10,000.
- Do you hold certifications such as CFA (Chartered Financial Analyst)?
- Are you also a financial planner and do you hold the CERTIFIED FINANCIAL PLANNER™ certification?
There are many different types of financial advisers, so it’s important to find one that meets your individual needs. With so many different types of advisors, it’s important to do your research to find the right one for you. Asking lots of questions and meeting with several advisors will help you find the best solution for your needs.