Finding a reliable financial advisor is like finding reliable professionals in any other field. You want one who is knowledgeable, trustworthy, and concerned with your financial future.
Before Starting Your Search
Make a plan of your specific goals for retirement. Will you own your own home or move into an apartment? What income and debts will you have after retiring? Make a list of needs for your financial advisor to fill.
Advisors Advertise
Newspapers, magazines, telephone directories, and websites will give you an abundance of advisors. Remember all financial advisors are equal. Do not be deceived by certificates, education, and big cars. You need someone who wants to make your future secure. Your money is buying your investments and paying your advisor.
Advisors are more successful in some areas than in others. Find one who is successful in your needed area. You may be concerned with providing for heirs, setting up trusts, or tax avoidance. Gather information about each advisor that meets your needs and select four or five for vetting.
Vetting the Advisors
Use the Internet to do a background check on each advisor. The Financial Industry Regulatory Authority provides information about people who are working or have worked as registered advisors. You can learn about their education, where they’ve worked, if there have been complaints, and other facts about their work that will help you make an informed decision.
Additionally, you can use a Google search for specific information about particular advisors. For example, “Harry Smith financial advisor complaints” should return any complaints about Harry Smith.
After doing some research, you should prepare for the personal interviews with your potential advisors. The personal interview is essential for making the best decision.
Personal Interviews
Before you enter into a professional relationship with a financial advisor, you will have to speak to them about your goals and assess if he or she can help you reach them. While waiting for the interview, you should observe the staff. Are they energetic? Do they appear efficient? What do they do when not engaged in their work?
In the interview, present your objectives to the advisor. Do not press for immediate investment plans, but allow time to evaluate and find the best investments. There are several questions you should ask of each candidate, including:
- What licenses do you have?
- What products and services do you sell?
- How much experience do you have?
- How are you compensated?
- Will you notify me before changing my investments?
- Will you explain how I will make money from each investment that you choose?
Financial advisors should work with you. A reliable advisor will advise you that market conditions are right for buying or selling. Although bad investments are an unavoidable risk, your advisor should remain knowledgeable, trustworthy, and concerned with your future.
