You want an advisor who has the qualifications and experience to help you achieve your financial goals, but you also want someone that you’re comfortable with. How do you find the right person?
Where to find a financial advisor:
Other professionals
Speak to other professionals that you’re already working with: your accountant, lawyer, bank manager or insurance agent. Since they already have a good understanding of your financial situation and needs, they may be able to put you in touch with an advisor with complementary skills.
Word of mouth
Talk to your family and friends and ask them if they have a financial advisor that they have had success working with. Your colleagues may also provide good referrals since they may be working with an advisor that specializes in specific professions. Keep in mind, though, that just because they have a good rapport with the advisor doesn’t mean you will too.
Interview your candidates
Take the time to interview several candidates. It may be tempting to simply choose the first advisor you hear about, but it’s best to meet with at least three financial advisors before you make a final decision.
When setting your appointment, go to the advisors’ offices instead of inviting them into your home. This allows you to examine their office and business environment.
Questions to ask the prospective advisor:
How long have you been in this business?
How many clients / families do you work with?
Will you work with me personally or will you delegate to an associate?
How often will I receive statements?
How are you compensated?
What is the full range of products and services that you offer?
Do you provide a comprehensive written analysis of my financial situation?
Can you give me a complimentary second opinion on my portfolio?
Make your decision
An advisor’s competence and skills should be the top criteria, followed by trust and open communication. In the end, it’s more important to get good advice than it is to be friends.
Look through this list and see whether you agree with the majority of the statements below for any of the advisors you interviewed.
I feel comfortable with this advisor.
I feel I can trust this advisor to put my interests first.
I feel I can trust this advisor with my personal information.
The advisor listens to me.
I understand and feel comfortable with the advisor’s approach to investing.
I understand how the advisor charges for service.
The advisor seems to understand my goals and my feelings about risk.
The advisor shows an independent approach in selecting investment products.
The advisor works with a broad range of products.
The advisor can provide advice in the areas I need, e.g., debt management, investing, insurance, tax planning, estate planning, etc.
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