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5 Tips to Help You Find the Best Financial Advisor

  • January 26, 2020

If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.

Find the Best Financial Advisor

A financial advisor is a professional who can help you turn your life around. If you're stuck in debt, they'll curate a plan to help you work towards being debt-free. If you're earning a lot of money but don't know how to use it well, they'll offer investment advice that'll help transform your life. But you must share your financial information, life goals, as well as future concerns with them.

Therefore, it’s essential that you find the right one as you'll be sharing lots of sensitive information. Luckily, here is some information about how to find a financial advisor.

Understand Who Exactly a Financial Advisor is and the Services They Offer

A qualified and real financial advisor should help you curate a financial path to get you from your current financial status to the one you want to achieve. They should help you learn how to handle the unexpected and offer value over their fees.

If an advisor tries to talk you into buying a particular insurance cover or invest in a specific scheme, run for your life! In a nutshell, the first step on how to find a financial advisor is to learn who this professional is and the services you should expect.

Related: Financial Advisor: Why It's Worth Having One

Determine the Kind of Help You Need

Once you understand who a financial advisor is, sit down, evaluate your current financial standing, and what you'd like the advisor to help you sort out. This is essential because there is no one-size-fits-all factor when it comes to advisors.

Some are more refined in offering estate planning services, while others are perfect for retirees. Taking time to analyze what you need will help you determine the kind of advisor whose help you need.

Stay Away From Google

There is no denying that Google has been incredibly helpful and has transformed the way the world works. But it has also created a haven for all sorts of unscrupulous businesses. Today, anyone can wake up, set up a financial advisor website, and then market it on Google.

The chances of you landing in such a service are pretty high due to paid ads. Knowing who a financial advisor is and the services you need will help. A service that markets itself on Google will also be careful to use the description you’re looking for, to entice you.

Play it safe by staying away from Google and using a reputable “find a financial advisor” tool for your search. An excellent example of such a tool is the National Association of Personal Financial Advisors.

Opt For a Fiduciary Financial Advisor

A fiduciary advisor will often prioritize your interests. He/she will not try to coerce you to buy or invest in a product they are selling because it benefits them. They will assess your situation and come up with a financial plan that suits you without you having to buy anything. That is the type of financial advisor you need in your life. Unfortunately, they are hard to find as they only make up 10% of the advisors available today. So, how do you rule out a fiduciary advisor from the lot? You do it through accreditation. Most fiduciary financial advisors will often hold AIF, RIA, and CEFEX certifications.

Also, don’t be afraid to ask it to their face. An advisor who’s a fiduciary will proudly acknowledge it verbally and in writing. If the advisor you’re dealing with hesitates or refuses to confirm it in writing, that should be enough to tell you they aren’t who they say they are.

See What Other People have to Say

Once you're confident, the financial advisor you're dealing with is legit and is a fiduciary, go the extra mile to see whether you're compatible. You can do this by checking out what previous clients have to say through reviews. Check out their social media and Google reviews. Also, ask for referrals. If they're mostly negative, it'd be wise if you look into your other candidates.

The financial decisions you make today greatly influence the direction your life takes a few years from now. If you're having trouble making the right financial choices and thinking of hiring an advisor, make sure you hire the best by taking the time to know how to find a financial advisor first.

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