If you're looking for a financial advisor, you may feel like you're looking for a needle in a haystack. Top financial advisors are a dime a dozen, and it can be difficult to determine which advisors are trustworthy and which are inept. However, you can narrow your search considerably by following these simple steps.
Work off a list of accredited advisors
Make sure the advisors you are considering have the proper accreditation by calling the following:
Secure a list of services provided
Make sure the services extend beyond an initial investment plan. Check for frequency of portfolio reports, estate planning, retirement planning, investment brokering and credit repair services.
Ask how the advisor's compensation is calculated
Is the first session free? It should be. Will you be charged by the hour for sessions? Will you be charged a fee per service or a percentage of financial products sold? Does the advisor get any kickbacks for selling specific financial products? Kickbacks can affect the objectivity of the advisor-if, for example, he or she gets a kickback for selling a specific financial product instead of being able to evaluate all the products available. You may want to use an independent financial advisor who is not tied to any set of financial products.
Ask for proof of experience
Look for an advisor who has guided satisfied clients through good and bad economic times. Ask for specific examples of how the advisor has navigated challenges in the marketplace. How long has this advisor been in business? With what size portfolios has he or she worked? How have average portfolios performed? Look for concrete numbers, not vague answers.
Ask how he or she develops financial plans
Look for mention of market research and methodologies for comparing options. Ask for a written plan complete with detailed analysis. Ask how he or she determines risk tolerance and what kind of diversification a typical portfolio for a person in your situation might you see. A top financial advisor will have worked with people just like you and will have answers to the questions right off the top of his or her head.
In the wake of all the accounting scandals, you might be looking at your financial advisor in a whole new way. However, any time is the right time to evaluate your financial advisor to make sure she is earning her fee. |
 | Learn about the types of advisors and the questions to ask before selecting a financial advisor. |
 | Before you even schedule a meeting, be aware of the right questions to ask a financial planner. |
 | Selecting financial planners isn't just about finding someone who seems knowledgeable; it's about finding someone whose knowledge is suited to your goals and level of risk tolerance. |
If you worked for several years and have saved some money, you need to know how best to invest that money. If you are retired, and have a pension and / or 401K plan, you need to be sure your savings and pension are invested wisely to guarantee a worry-free future. |
