A Guide on How to Hire A Financial Advisor

It’s now time to hire a financial professional and you’re asking yourself how should I go about this. This tends to happen when people have a life event that takes place. Things like marriage, having children, divorce and receiving an inheritance. When it comes to money there are no “do overs” so it’s crucial to get this right the first time!.

Things to Consider When Choosing a Financial Advisor

Determine Your Financial Goals

Before hiring a financial advisor, it’s important to have a clear understanding of your financial goals and what you hope to attain. This will help you find an advisor who specializes in the areas you need assistance with. Consider whether you need:

• Holistic financial planning
• Investment management
• Retirement planning
• Strategic business planning
• Tax planning
• Estate planning
• Generational wealth planning

Knowing your specific needs will help you find an advisor with the right expertise.

Research and Vet Potential Financial Advisors

Use resources to find Advisors in your area. Some examples of resources include:

• Asking friends, family and respected community members for recommendations
• Use online advisor matching tools
• Read client reviews and testimonials

Research Different Types of Financial Advisors

There are various types of financial advisors, such as Certified Financial Planners (CFPs), Certified Wealth Strategists (CWS), Chartered Retirement Planning Counselor (CRPC) Investment Advisors, and Wealth Managers. Each type may have different areas of expertise, so it’s essential to understand their qualifications and the services they offer.

Check the Advisor’s Credentials

Seek advisors who have the necessary certifications and licenses. For example, Certified Wealth Strategists (CWS’s) have undergone extensive training and must adhere to a strict code of ethics. You can verify an advisor’s credentials through organizations like the Certified Financial Planner Board of Standards or the Financial Industry Regulatory Authority.

Consider Both the Advisor’s Experience

Find out how long the advisor has been in the industry and if they have experience working with clients in similar situations to yours. A seasoned advisor may bring more knowledge and expertise to the table. Also, what does their firm look like? Do they have a team to support them that provides great customer service? Additionally, do they have Financial Planners in their firm that could provide continuity of service for you in the event your primary advisor retires or has health issues?

Understand the Financial Advisor’s Compensation Structure

Financial advisors can be compensated in different ways, such as through fees, commissions, or a combination of both. Make sure you understand how your advisor will be compensated and if there are any potential conflicts of interest.

Ask About Their Investment Philosophy

It’s important to know how the advisor approaches investing and whether their philosophy aligns with your own. Discuss their strategies, risk tolerance, and investment recommendations.

Seek References and Testimonials

Every Financial Advisor worth their salt should be happy to provide references and at your request. Hearing about other people’s experiences with the advisor can provide valuable insights into their professionalism, communication skills, and ability to meet client goals.

Conduct Interviews and Consultations

Schedule meetings with potential advisors to ask questions and evaluate their suitability. Before meeting with Financial Advisors, make a list of qualities and factors that are most important to you. During the meeting, discuss your financial situation, goals, and any concerns you might have. Assess whether the Advisor’s experience, communication style, responsiveness, and overall compatibility checks the boxes on your list.

Review the Advisor’s Disciplinary History

Research any disciplinary actions or complaints against the advisor. You can check with regulatory bodies like the Securities and Exchange Commission or the Financial Industry Regulatory Authority.

Trust Your Instincts

Ultimately, it’s crucial to choose an Advisor you feel comfortable and confident working with. Trust your instincts and select someone who listens to your needs, communicates effectively and demonstrates integrity.

Remember, this article is just a starting point on how to find a Financial Advisor. It’s essential to do thorough research and carefully evaluate potential financial advisors before making your decision. At iWealth, our Wealth Advisors and team are fully dedicated to helping people live their best lives possible and retire with purpose.