5 Tips For Choosing A Financial Advisor

screenshot-2016-12-06-21-18-17Choosing a financial advisor can be one of your most critical decisions. A good advisor can help you reach your financial goals and focus on what’s really important in life.

That’s why we were happy to talk to financial writer Robyn A. Friedman, as she compiled 5 top tips for selecting the right advisor (you can find Robyn’s entire article in the December 2016 City & Shore magazine).

Here’s Robyn’s summary of the 5 essential items to look for in an advisor:

1). Check credentials. Your advisor should have a rock-solid basis of personal finance and investment credentials. Look for top designations like the CFP® (Certified Financial Planner™) mark, proving that your advisor has the education, experience, ethics and exams needed to guide you properly.

2). Confirm competency. “Make sure your potential advisor is skilled in the areas most important to you,” says Robyn.

 3). Understand how your advisor gets paid. Compensation structure is important, so don’t be shy about asking your advisor how he or she gets paid. The trend now is strongly in favor of fees to avoid conflicts of interest from lucrative product commissions.

 4). Ask about other clients. Select an advisor who understands your needs and works with other clients like you.

 5). Establish rapport. You and your advisor need to work well together. “Your advisor needs to understand your life and what’s realistic for you,” says Robyn.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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2 Responses to 5 Tips For Choosing A Financial Advisor

  1. Tomas Killington April 21, 2017 at 10:17 am #

    My wife and I have recently received some inheritance from my grandparents. We want to make sure we save enough for the future, so we’re looking for a financial adviser that can help us prepare for our retirement. I didn’t realize how important is to check the credentials of different financial advisers to ensure they have the training and knowledge necessary to help. I’ll be sure to remember this consideration moving forward.

  2. Gloria Durst May 15, 2017 at 1:30 pm #

    Knowing how a financial advisor has interacted with other clients would probably give you an idea of how they work as well. It would seem important to know what kind of people they work with in order to know if they will be good for you. My sister needs help managing her finances so she’ll have to find someone who has worked with similar clients to her.

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