How to Find a Financial Advisor

Financial advisors can help you create a budget, project your financial needs, develop a plan to meet them and execute that plan. Here's some advice on how to find a financial advisor.

Difficulty: Moderately Easy

Instructions

1. Assess your financial situation. Find out what you own and what debts you have. Include cash, bank accounts, stocks and mutual funds, retirement accounts, real estate, mortgages, car and home loans, and credit card debt.

2. Set your investing goals. Why are you investing? Common goals are buying a home, funding retirement and paying for a child's education. Your goals will determine what sort of advisor you need.

3. Research financial advisors in your area. Contact financial companies that you already trust and ask if they have financial advisors located near you. Use a variety of sources including your local phone book and the internet. Keep in mind that many advisors have minimum asset requirements.

4. Use Wiseradvisor.com to match your goals and needs with qualified, local advisors.

5. Contact your state securities regulator to get a Central Registration Depository report about your potential advisor and firm.

6. Interview your candidates to determine if their experience, philosophy and offerings are compatible with your investment goals.

Tips & Warnings

• Always use an advisor whose firm belongs to the Securities Investor Protection Corporation (SIPC). This membership protects your assets if the brokerage goes bankrupt. However, it does not protect you from investment losses.

Resources

• Go here to use the Wiseradvisor screening tool.